Enters into Stalking Horse Agreement with Service Compression, LLC, for the Sale of Substantially All of the Company’s Assets

Secures Commitment for Approximately $104.8 Million in Debtor-in-Possession Financing, Including Approximately $25.5 Million in New Money Financing to Continue Delivering Uninterrupted Field and Support Services

Axip Energy Services, LP and certain of its affiliates (collectively “Axip” or the “Company”), leading providers of natural gas compression services, today announced that they have filed voluntary petitions for Chapter 11 relief in the United States Bankruptcy Court for the Southern District of Texas (the “Court”) to facilitate a sale process for the Company’s assets and business operations. The Company intends to continue operating its business in the ordinary course throughout the Chapter 11 sale process.

To anchor the sale process, Axip has entered into an Asset Purchase Agreement (the “Stalking Horse APA”) with Service Compression, LLC, a leading provider of natural gas compression services, for the sale of substantially all of the Company’s assets. The Stalking Horse APA establishes a strong baseline offer and is intended to help maximize value for all stakeholders through the Chapter 11 sale process. The Stalking Horse APA also provides certainty to Axip’s employees, customers, and vendors of continuity of the Company’s operations through and following the Chapter 11 process.

To support ongoing operations and continuity for Axip’s employees, customers, and vendors, Axip has secured a commitment for approximately $104.8 million in debtor-in-possession (“DIP”) financing, including approximately $25.5 million in new money financing from certain of its prepetition lenders. Subject to Court approval, the DIP financing is expected to provide sufficient liquidity for the Company to operate in the ordinary course and meet its day-to-day obligations throughout the Chapter 11 process.

“This marks a strategic step to position Axip for long-term success under new ownership,” said Ben Chesters, Chief Restructuring Officer. “Throughout this process, Axip remains committed to maintaining continuity for our employees, customers, and vendors and focused on delivering safe, reliable service in the field. We are confident this sale process will build on the Company’s foundation of safety, efficiency, and quality service.”

Axip is seeking relief through a number of customary “first day” motions filed with the Court to facilitate a smooth transition into Chapter 11 and support operations in the ordinary course. These motions, which Axip expects to be approved in short order, include requests to make payments to vendors, provide critical services to its customers, and continue employee payroll and benefits.

Additional information about Axip’s Chapter 11 process is available through the Company’s claims agent, Epiq, at https://dm.epiq11.com/AXIP. Stakeholders with questions can contact Epiq by calling (877) 741-6428 (U.S./Canada) or +1 (503) 713-6160 (International) or emailing AXIP@epiqglobal.com.

Advisors

Vinson & Elkins LLP is serving as legal advisor, Ankura Consulting Group LLC is serving as the restructuring advisor, Evercore is serving as investment banker, and C Street Advisory Group is serving as strategic communications advisor to the Company. Willkie Farr & Gallagher LLP is serving as legal advisor and Moelis & Company is serving as investment banker to Service Compression.

About Axip

Axip provides natural gas compression services to upstream and midstream customers in all major producing basins in the United States and offshore Gulf of Mexico. Axip’s compression fleet of over 500,000 horsepower comprises both electric and natural gas-driven units ranging from 100 – 2,500 HP. Axip leverages its long-standing industry leadership in remote monitoring, automation, and electric drive compression to optimize compressor performance and facility throughput while minimizing the risk and carbon intensity of oil and gas production. Axip is committed to delivering the highest standards in safety, service, and reliability to its customers. More information is available at www.axip.com.

About Service Compression

Service Compression, LLC ("SC") is a leading provider of natural gas compression services for exploration and production companies at the wellhead. Since its founding in 2004, the Company has built a reputation for reliability, innovation, and proactive partnerships. Headquartered in Fort Worth, Texas, with field offices in Texas, New Mexico, Oklahoma, and Arkansas, SC specializes in providing technology-fueled compression solutions to meet the needs of blue-chip customers in the upstream oil and gas sector. For more information, visit www.servicecompression.com.

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