Kodiak Gas Services Enters into Underwriting Agreement with Selling Stockholder

On November 14, 2024, Kodiak Gas Services, Inc. announced the signing of an Underwriting Agreement with Frontier TopCo Partnership, L.P. and leading firms Barclays Capital Inc., Goldman Sachs & Co. LLC, and J.P. Morgan Securities LLC. The agreement pertains to the sale of 5,708,885 shares of common stock by the Selling Stockholder at a public price of $34.50 per share.

Additionally, the Selling Stockholder granted the Underwriters a 30-day option to purchase up to 856,332 additional shares to cover any overallotments. This option was fully exercised by the Underwriters on November 15, 2024. Notably, Kodiak Gas Services did not sell any shares in the Offering and did not receive any proceeds from the sale of the shares offered by the Selling Stockholder.

As part of the agreement, Kodiak Gas Services engaged in a Share Repurchase, purchasing 434,783 shares of Common Stock from the Selling Stockholder at the public offering price. This repurchase was executed in line with the company’s $50.0 million share repurchase program, which is set to expire on December 31, 2025. After this recent repurchase, $35.0 million remains under this share repurchase program.

The Underwriting Agreement includes standard representations, warranties, and closing conditions. Both Kodiak Gas Services and the Selling Stockholder have agreed to indemnify the Underwriters and contribute to any liabilities. The full details of the Underwriting Agreement can be found in the filed Exhibit 1.1.

This move aligns with Kodiak Gas Services’ strategic financial planning and demonstrates its commitment to enhancing shareholder value through calculated stock transactions and buyback programs.

This announcement signifies a significant development for Kodiak Gas Services, reflecting its engagement with finance professionals and its proactive approach to capital market activities.

This article was generated by an automated content engine and was reviewed by a human editor prior to publication. For additional information, read Kodiak Gas Services’s 8K filing here.

Kodiak Gas Services Company Profile

Kodiak Gas Services, Inc operates contract compression infrastructure for customers in the oil and gas industry in the United States. It operates in two segments, Compression Operations and Other Services. The Compression Operations segment operates company-owned and customer-owned compression infrastructure to enable the production, gathering, and transportation of natural gas and oil.