Exterran Corporation (NYSE: EXTN) is engaged as a global industrial systems and process company, focusing on the oil, gas, water and electrical markets. The company is a top industry leader in natural gas processing, compression, and treatment, which provides key midstream infrastructure services across 25 countries. Shares of the energy infrastructure company are surging 48% through early trading on Monday, January 24, 2022. Over the past three months, Exterran has seen average daily volume of 330,280 shares. However, volume of 38.01 million shares or dollar volume of around $170.28 million, has already exchanged hands through early trading Monday.
Shares of Exterran Corporation are rallying after the company announced that it has entered into a business combination agreement to create a global energy infrastructure giant. The post-merger company will operate as Enerflex, Ltd. and will remain headquartered out of Calgary, Alberta, Canada.
Under the terms of the agreement, Enerflex will acquire all outstanding common shares of Exterran in an all-share transaction. This means Exterran shareholders will receive 1.021 Enerflex common shares for each share of Exterran, which gives the transaction an aggregate value of $735 million. On a combined basis, the post-merger company will have an enterprise value of around $1.5 billion.
“We are excited about the ability to create shareholder value through this Transaction and improving our product and service offering. The scale and efficiencies this combination brings is the right path for Exterran and brings significant opportunities for accelerated growth in produced water treatment and energy transition products and services,” said Andrew Way, President and Chief Executive Officer of Exterran.
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