Service company Liberty Energy Inc. has acquired Siren Energy, an integrated natural gas compression and CNG delivery business focused on the Permian Basin, in a $78 million deal, according to a April 10 press release.

Liberty Energy, based in Denver, announced the acquisition alongside the launch of a new unit, Liberty Power Innovations (LPI) — an integrated alternative fuel and power solutions provider for remote applications.

LPI’s initial focus is on CNG supply, field gas processing and treating and wellsite fueling and logistics.

CNG and treated field gas are currently in limited supply, according to Liberty. LPI deployed its inaugural field gas treating services for “a key Haynesville [Shale] customer in support of a Liberty frac fleet,” the company said.

To accelerate LPI’s expansion, Liberty said it acquired Siren Energy, which has 16 million cubic feet per day of natural gas compression capacity at two expandable Permian sites. Siren also offers transportation, logistics and pressure reduction services.

Siren delivers fuel to customers in both the drilling and completions markets, and its logistics system is designed to deliver CNG, renewable natural gas (RNG) or hydrogen to remote locations. Liberty said the Siren acquisition is subject to normal closing adjustments.

Siren Energy’s customers include Chevron Corp., where the company has worked to support the lowering of Chevron’s carbon intensity and diversifying its supply chain, including transporting CNG to power drilling operations in the Permian, according to the E&P’s website.

Siren was founded in 2021 and is co-led by Jamie Farmer Patterson, Megan Marse and Delvina Uka.

Tudor, Pickering, Holt & Co. analyst Matt Murphy said in an April 10 report that information on Siren’s financials is limited.

“The press release did indicate that the transaction was accretive as the company continues to expand its vertical integration alongside LBRT’s existing sand, logistics, design and manufacturing, all [of] which are chiefly focused on ensuring that the company’s core business, frac, can run reliably and efficiently,” Murphy said. “Finally, the company alluded to opportunities beyond the oilfield as the Siren was initially designed to transport RNG and hydrogen alongside CNG.”

Liberty said that its LPI unit was launched as the oilfield is undergoing a “generational technology shift in fuel use from diesel to clean-burning natural gas.”

Liberty CEO Chris Wright said LPI adds another critical component to the company’s vertical integration strategy.

“Dependable access to fuel is critical to maintaining highly efficient well site operations that drive Liberty’s industry-leading returns,” Wright said. “LPI will supply this fuel to Liberty and the rest of the industry.”

Wright said that LPI and the acquisition exemplifies the company’s strategy of investing for the future with high rate of return opportunities.

“Today’s accretive transaction accelerates this strategy by unlocking significant value with a faster, go-to-market approach for LPI to bring natural gas fuel to the oilfield, enabling lower well development costs for our E&P customers and higher profitability for our shareholders,” he said. “As we look ahead, our mobile power generation technology with industry-leading thermal efficiency and integrated fueling and logistics provides exciting opportunities beyond the oilfield.”