Kodiak Gas Services Announces Accretive Purchase of Over 20,000 Horsepower in the Permian Basin
THE WOODLANDS, Texas–(BUSINESS WIRE)–
Kodiak Gas Services, Inc. (NYSE: KGS) (“Kodiak” or the “Company”) today announced that it recently closed on the purchase of over 20,000 horsepower of large horsepower compression assets from a leading oil and gas producer in the Permian Basin for $24 million.
Kodiak will utilize the acquired compression assets to provide contract compression services to the seller under a seven‑year service agreement, generating more than $7 million in incremental annualized revenues. The acquired compression assets will be integrated into Kodiak’s existing operating footprint in Texas and New Mexico, expanding the Company’s presence in one of the most active producing regions in North America.
“This transaction underscores Kodiak’s strategy of deploying capital into high‑quality, long‑duration commercial opportunities with premier operators, and further strengthens our leading position in the Permian Basin,” said Mickey McKee, President and CEO of Kodiak Gas Services. “The multiyear contracted cash flows and quality return characteristics are expected to drive incremental value for our shareholders.”
Including this transaction, Kodiak expects full year 2026 growth capital expenditures (excluding any capital expenditures related to the pending acquisition of Distributed Power Solutions, LLC) to be in the range of $245 million to $275 million. Kodiak now expects the sum of new units plus the units related to this acquisition to add approximately 170,000 compression horsepower in 2026.
About Kodiak
Kodiak is a leading contract compression services provider in the United States, serving as a critical link in the infrastructure that enables the safe and reliable production and transportation of natural gas and oil. Headquartered in The Woodlands, Texas, Kodiak provides contract compression and related services to oil and gas producers and midstream customers in high–volume gas gathering systems, processing facilities, multi-well gas lift applications and natural gas transmission systems.
Cautionary Note Regarding Forward-Looking Statements
This news release contains “forward-looking statements” within the meaning of the safe harbor provisions of the U.S. Private Securities Litigation Reform Act of 1995. Forward-looking statements are neither historical facts nor assurances of future performance. Instead, they are based only on our current beliefs, expectations and assumptions regarding the future of our business, future plans and strategies, projections, anticipated events and trends, the economy and other future conditions. Forward-looking statements can be identified by words such as: “anticipate,” “intend,” “plan,” “goal,” “seek,” “believe,” “project,” “estimate,” “expect,” “strategy,” “future,” “likely,” “may,” “should,” “will” and similar references to future periods. Forward-looking statements contained herein include expected growth capital expenditures, including specifically the amount of new compression horsepower expected to be added to Kodiak’s fleet in 2026. Because forward-looking statements relate to the future, they are subject to inherent uncertainties, risks and changes in circumstances that are difficult to predict and many of which are outside of our control. A list and description of risks, uncertainties and other factors can be found in the Part I, Item 1A. “Risk Factors” and Part II, Item 7. “Management’s Discussion and Analysis of Financial Condition and Results of Operations” sections of our Annual Report on Form 10-K for the fiscal year ended December 31, 2025 and filed with the SEC on February 26, 2026 and any updates to those factors set forth in our current reports on Form 8-K. Any forward-looking statement made by us in this news release is based only on information currently available to us and speaks only as of the date on which it is made. Except as may be required by applicable law, we undertake no obligation to publicly update any forward-looking statement whether as a result of new information, future developments or otherwise.
View source version on businesswire.com: https://www.businesswire.com/news/home/20260319869411/en/
Graham Sones, VP of Investor Relations
[email protected]
(936) 755-3259
KEYWORDS: United States North America Texas
INDUSTRY KEYWORDS: Oil/Gas Alternative Energy Energy Other Energy Utilities
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