Kodiak Gas Services, Inc,
We are a leading operator of contract compression infrastructure in the United States (“U.S.”). Our compression operations are critical to our customers’ ability to reliably produce natural gas and oil to support growing global energy demand. (Incorporated in Delaware)
We are a market leader in the Permian Basin, which is the largest producing natural gas and oil basin in the U.S. We operate our large horsepower compression units under stable fixed-revenue contracts with blue-chip upstream and midstream customers. Our four largest customers – for the nine months ended Sept. 30, 2022 – are all members of the S&P 500; these four customers provided over 38% of our revenues for that nine-month period.
Eighty-four percent of our compression assets are strategically deployed in the Permian Basin and Eagle Ford Shale, which the EIA expects to maintain significant production volumes through at least 2050. We believe these two regions have the largest and lowest-cost unconventional resources in the U.S. Additionally, there are significant liquefied natural gas (“LNG”) export projects in development, and overall LNG capacity is expected to meaningfully grow over the next decade. We expect this to translate into Permian Basin and Eagle Ford Shale natural gas demand growth, requiring substantial additional compression horsepower. We believe these regions will play an increasingly important role in global energy security as the world continues to require reliable and growing natural gas and oil production to support increasing global energy demand.
We lead the industry in large horsepower compression, with approximately 80% of our approximately 2.9 million horsepower fleet comprised of compression units larger than 1,000 horsepower. Due to lower initial reservoir pressures, production from unconventional resources, such as the Permian Basin and Eagle Ford Shale, requires significantly more compression horsepower than from conventional production, which supports our large horsepower strategy. Additionally, increased demand for large horsepower infrastructure is driven by multi-well pad drilling, overall well density, and large-scale gathering systems. We believe large horsepower compression units serve more stable applications, receive longer initial contracts, are more likely to be renewed, and produce higher margins, ultimately generating recurring cash flow and return on invested capital.
**Our largest shareholder is EQT AB, a Swedish public limited liability company whose ordinary shares are listed on Nasdaq Stockholm.
**Note: Revenue and net income are for the 12 months that ended March 31, 2023.
(Kodiak Gas Services, Inc. priced its IPO on June 28, 2023, at $16.00 – $3.00 below the bottom of its $19.00-to-$22.00 price range – on 16.0 million shares – the number of shares in the prospectus – to raise $256.0 million. Kodiak Gas Services, Inc. filed terms for its IPO on June 20, 2023, in an F-1/A filing: 16.0 million shares at $19.00 to $22.00 to raise $328.0 million. Kodiak Gas Services also updated its financial statements through March 31, 2023, in its F-1/A filing dated June 20, 2023. Background: Kodiak Gas Services, Inc. filed its F-1 on March 31, 2023, with a placeholder amount of $100 million in estimated IPO proceeds. Some IPO experts said at the time that they believed that Kodiak’s IPO could raise triple that amount or so. Kodiak Gas Services submitted confidential IPO documents to the SEC on Dec. 12, 2022.)
|Industry:||Natural Gas Services|
|Address||15320 Highway 105 W, Suite 210 Montgomery, Texas 77356|
|Phone Number||(936) 539-3300|
|View Prospectus:||Kodiak Gas Services, Inc,|
|Revenues||$729.68 mil (last 12 months)|
|Net Income||$65.98 mil (last 12 months)|
|Price range||$16.00 - $16.00|
|Est. $ Volume||$256.0 mil|
|Manager / Joint Managers||Goldman Sachs/ JP Morgan/ Barclays/ BofA Securities/ Raymond James/ RBC Capital Markets/ Stifel/ Truist Securities/ TPH & Co.|
|CO-Managers||Comerica Securities/ Fifth Third Securities/ Regions Securities LLC,/ Texas Capital Securities/ AmeriVet Securities/ Guzman & Company/ R. Seelaus & Co., LLC/ Siebert Williams Shank|
|Expected To Trade:||6/29/2023|
|Quiet Period Expiration Date:||Available only to Subscribers|
|Lock-Up Period Expiration Date:||Available only to Subscribers|
|SCOOP Rating||Available only to Subscribers|
|Rating Change||Available only to Subscribers|