THE WOODLANDS, Texas - Kodiak Gas Services, Inc. (NYSE: KGS), a major provider of contract compression services in the United States, disclosed today that an affiliate of funds known as EQT (ST:EQTAB) Infrastructure III and EQT Infrastructure IV is initiating an underwritten public offering of 5,500,000 shares of Kodiak common stock. The offering comes as KGS trades near its 52-week high at $43.54, with InvestingPro analysis indicating the stock is currently overvalued relative to its Fair Value. Kodiak itself will not be offering any shares and will not receive any proceeds from this transaction.
The completion of the offering is contingent upon market conditions, and there is no certainty as to the timing or completion of the offering. Goldman Sachs (NYSE:GS) & Co. LLC and J.P. Morgan are serving as underwriters for the offering.
Interested parties may obtain copies of the prospectus supplement and the accompanying base prospectus related to the offering from the Securities and Exchange Commission's (SEC) website or directly from the underwriters.
Kodiak, headquartered in The Woodlands, Texas, is recognized as the largest contract compression services provider in the U.S. The company plays a crucial role in the production and transportation of natural gas and oil, offering its services to producers and midstream customers. With a market capitalization of $3.81 billion and last twelve months EBITDA of $528.63 million, InvestingPro data reveals the company maintains a "GOOD" overall financial health score despite operating with significant debt levels.
The press release also includes forward-looking statements, as defined under the Private Securities Litigation Reform Act of 1995, concerning the offering. These statements are based on current expectations and entail various risks and uncertainties that could cause actual results to differ materially from those anticipated. For deeper insights into KGS's valuation and growth prospects, InvestingPro subscribers can access 12 additional ProTips and comprehensive financial metrics in our exclusive Pro Research Report.
Investors are advised to read the prospectus and other documents filed with the SEC for a more complete understanding of Kodiak and the offering. The company has stated that it will not update forward-looking statements publicly or report unanticipated events unless required by law.
This news article is based on a press release statement from Kodiak Gas Services, Inc.
In other recent news, Kodiak Gas Services has reported robust earnings and revenue results, with an EBITDA of $154 million closely aligning with expectations. The company also increased its quarterly cash dividend by 8% to $0.41 per share. In addition, Kodiak initiated a public offering of approximately 6.14 million shares by an affiliate of EQT Infrastructure funds and announced plans to repurchase $25 million of its common stock.
Kodiak Gas Services recently filed a prospectus supplement allowing certain selling stockholders to resell up to 5,562,273 shares of its common stock. RBC (TSX:RY) Capital Markets maintained its Outperform rating on Kodiak shares and increased the company's price target to $40.00. Mizuho (NYSE:MFG) initiated coverage on the stock with an Outperform rating and a price target of $36.00. These are recent developments for Kodiak Gas Services.
The company's strategic steps to improve its offerings by upgrading its fleet quality were also noted. Kodiak Gas Services is expected to see an approximate 8% compound annual growth rate (CAGR) in EBITDA, buoyed by industry tailwinds and a clear capital allocation strategy. The company's focus on the Permian region and its relatively younger fleet are considered key differentiators.
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