Kodiak Gas Services, which provides natural gas compression services in the US, announced terms for its IPO on Tuesday.
The Montgomery, TX-based company plans to raise $328 million by offering 16 million shares at a price range of $19 to $22. At the midpoint of the proposed range, Kodiak Gas Services would command a market value of $1.5 billion.
Kodiak states that it is a leading operator of contract compression infrastructure in the US, with 84% of its compression assets strategically deployed in the Permian Basin and Eagle Ford Shale. The company operates its large horsepower compression units under stable, fixed-revenue contracts with blue-chip upstream and midstream customers. Approximately 81% of its 3.2 million horsepower fleet is comprised of compression units larger than 1,000 horsepower, and its assets and supporting operations have a historical average mechanical availability of over 99.5% since inception.
Kodiak Gas Services was founded in 2011 and booked $730 million in revenue for the 12 months ended March 31, 2023. It plans to list on the NYSE under the symbol KGS. Goldman Sachs, J.P. Morgan, Barclays, BofA Securities, Raymond James, RBC Capital Markets, Stifel, Truist Securities, and Tudor, Pickering, Holt & Co. are the joint bookrunners on the deal. It is expected to price during the week of June 26, 2023.
