Growth, Setbacks and Stranded Equipment
Founded in 2002, Axip contracts with oil and gas producers to supply gas compression machinery for wells — equipment that pushes gas back underground to enhance oil recovery and propels gas through pipelines. The company services onshore and offshore wells across six states, according to court papers.
Axip was acquired in 2022 by investment firm Energy Spectrum Capital in what Chesters described as a growth opportunity. The deal enabled the purchase of 10 new compression units. But that expansion came at a cost: the company operated on what he called “thin margins,” leaving little room for turbulence.
And turbulence came.
In 2024, a major offshore customer filed for bankruptcy, stranding 24 of Axip’s units — roughly 15% of its total compression capacity — on platforms in the Gulf of Mexico. In 2023 and 2024, other customers abruptly shifted their business models and returned equipment, further squeezing revenue.
Axip responded by trimming expenses and shuttering its offshore office. Still, it defaulted on its asset-based loan and was unable to refinance. The superpriority facility was negotiated as a stopgap measure, buying time to seek a buyer.
