Axip Energy Services, LP, a Houston-based company, filed for Chapter 11 bankruptcy protection on February 22, 2026, in the U.S. District and Bankruptcy Court, Southern District of Texas. The company aims to seek protection to restructure its business while continuing to operate in the ordinary course throughout the bankruptcy proceedings.
Axip Energy Files Chapter 11 Bankruptcy
Axip Energy Services, along with its six affiliates, including, Axip Energy Services Management, LLC, Axip Holdings, LLP, Axip Leasing Company, LLC, Axip Producer Services, LLC, Axip Producer Services – Marcellus I, LLC, and E3 Compression Holdings, LLC has filed for voluntary petitions seeking relief under Chapter 11 of the United States Bankruptcy Court for the Southern District of Texas.
Axip Energy is looking forward to facilitating a sale of its assets and business operations to Service Compression, LLC, a Fort Worth-based provider of natural gas compression services.
According to the Chapter 11 bankruptcy filing with the court, the company has signed a Stalking Horse Asset Purchase Agreement (APA) with Service Compression, under which the former will sell all of its assets.
The Texan company is aiming to restructure its business with an intention to provide certainty to its vendors, employees and customers during and afterwards of the Chapter 11 process with the first day of hearing beginning from February 24, 2026.
Summary of Axip Energy’s Bankruptcy Case
The Stalking Horse APA is intended to maximize value for all stakeholders, while establishing a strong baseline offer, the company said in a press release. Here are some more details about the filing:
- Filing Date: February 22, 2026
- Court and Jurisdiction: U.S. Bankruptcy Court for the Southern District of Texas
- Type of Filing: Active, Voluntary Petition
- Chapter: 11
- Case Number: 26-90338
- Estimated Assets: $100,000,001-$500 million
- Estimated Liabilities: $100,000,001-$500 million
- Reason for Filing: To facilitate sale of business and assets
Axip Energy Creditors
As per the filing documents, the estimated number of creditors for Axip Energy are somewhere between 200 and 999, with Waller-based Burckhardt Compression (US) Inc. and Houston’s Waukesha Pearce Industries Inc. listed as the top two creditors with an unsecured claim of $2.14 million and $1.82 million, respectively.
Among the 30 creditors with biggest unsecured claims, Axip Energy has also listed Chevron Products Company, a division subsidiary of Chevron Corporation, which has a claim of $178,775. Other major creditors include Odessa American Refabrication, LLC, Triple B Compression Services, LLC, Coastal Chemical Co. LLC, and Impact Compression & Equipment Services.
Axip’s Chapter 11 Relief: Key Highlights
Axip said it expects court approval in “short order,” allowing it to continue payroll, vendor payments, and customer services.
- According to Axip, the company has sought relief through a number of customaries “first day” motions filed with the Court to facilitate a smooth transition into Chapter 11 and support operations in the ordinary course.
- The energy firm has secured a debtor-in-possession (DIP) financing commitment for approximately $104.8 million, including nearly $25.5 million in new money financing from some of its pre-petition lenders.
- The DIP financing is expected to provide liquidity to maintain operations during the restructuring.
- Furthermore, the funds will help the firm in supporting continuity for its employees, vendors and customers, while meeting its periodic monetary commitments and obligations throughout the course of Chapter 11 process.
More About Axip Energy Services
Axip, incorporated in November 2022, has been a natural gas compression services provider, facilitating processing and treating services for the oil and gas industry. The company conducts business with upstream and midstream customers in all of the major producing basins in the U.S. and offshore Gulf of Mexico.
The firm claims to have a compression fleet of more than 500,000 horsepower (HP), comprising both electric and natural gas-driven units ranging from 100 to 2,500 HP. As far as operations are concerned, the company has footprints in Bakken, Eagle Ford, East Texas/Haynesville, Mid-Continent, Gulf of Mexico and Permian.
Axip has been operating with a purpose to eliminate routine flaring, optimize the efficiency of compression services, increase safety while reducing its own carbon footprint, and support customer needs in a low-carbon future.
Service Compression, incorporated in 2004, operates from various field offices including Texas, New Mexico, Oklahoma, and Arkansas, having the base in Fort Worth. The company specializes in providing technology-fueled compression solutions to customers in the upstream oil and gas sector.
Distress Amid Energy Players
Of late, U.S. energy companies are increasingly seeking relief under Chapter 11, largely to execute a strategic reset in a bid to avoid collapse. In February 2026 itself, a Houston-based oilfield business Nine Energy Service, Inc. filed for Chapter 11 bankruptcy with a prepackaged plan.
In November of 2025, another Texas-based company 84 Energy LLC filed for protection under Chapter 11 of the Bankruptcy Code, after reporting a significant gap between its assets and liabilities.
Who’s Handling Axip’s Chapter 11 Restructuring
Paul E. Heath of Vinson & Elkins LLP has been appointed as the attorney and Ben Chesters, acting on behalf of Ankura Consulting Group LLC, is the Chief Restructuring Officer, representing Axip Energy in the court proceedings. “This marks a strategic step to position Axip for long-term success under new ownership,” Ben Chesters has stated.
“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,” Chesters added.
Evercore Inc. has been appointed to serve as the investment banker to Axip, while Moelis & Company has been roped in by Service Compression as investment banker. Willkie Farr & Gallagher LLP is the legal advisor and C Street Advisory Group is acting as strategic communications advisor to Axip Energy.
Chapter 11 allows companies a definitive window of opportunity to renegotiate contracts, offload assets, pause, or defer debt payments for a limited period, and onboard new investors, respectively. Heavy borrowings during periods of rapid expansion, stringent refinancing conditions, higher interest rates often steer companies towards hard operating environments, and ultimately to seek relief by announcing bankruptcy.
Additionally, unwarranted delays in big-ticket receivables, heightened cost of labor and chunkier working capital requirements make it difficult for enterprises with long-term contracts locked in at low prices.
