J-W Energy Co. said July 21 it has exited upstream and midstream to focus solely on compression services.
The Dallas company sold substantially all of its assets owned by its subsidiaries, J-W Operating and J-W Midstream, to affiliates of Aethon United LP for an undisclosed amount. The assets included about 95,000 net acres and 380 miles of associated gathering and processing infrastructure in North Louisiana and North Texas.
J-W Energy will continue to own the largest privately-held compression fleet in the U.S. upon closing, which occured on July 1, according to the press release.
"This exit from the upstream and midstream businesses will allow J-W Energy Company to focus on our compression business, which has been less capital intensive than the upstream and midstream businesses," David A. Miller, president of J-W Energy, said in a statement.
The company also exited from the drilling, valve manufacturing, gas measurement and wireline businesses over the past 10 years as part of a planned reallocation of company resources, the release said.
Wells Fargo Securities LLC was J-W Energy's exclusive financial adviser on the transaction.