CSI Compressco offers compression services and equipment for the production, gathering, artificial lift, transportation, processing and storage of oil and natural gas. Credit: Mike Mareen/Shutterstock.

Kodiak Gas Services (Kodiak) has signed a definitive agreement to acquire CSI Compressco in an all-stock deal valued at $854m.

Under the terms of the agreement, CSI Compressco shareholders will be eligible to receive 0.086 shares of Kodiak common stock in exchange for CSI Compressco common stock held.

The acquisition includes the assumption by Kodiak of $619m of net debt of CSI Compressco.

CSI Compressco, a Texas-based company, offers compression services and equipment for the production, gathering, artificial lift, transportation, processing and storage of oil and natural gas.

Kodiak, which provides contract compression services, expects the acquisition to create a company with compression capacity of 4.3 million horsepower.

See Also:

The deal will also bolster Kodiak’s services for the natural gas value chain by adding CSI Compressco’s treating, gas cooling and aftermarket services capabilities, it added.

How well do you really know your competitors?

Access the most comprehensive Company Profiles on the market, powered by GlobalData. Save hours of research. Gain competitive edge.

Company Profile – free sample

Thank you!

Your download email will arrive shortly

Not ready to buy yet? Download a free sample

We are confident about the unique quality of our Company Profiles. However, we want you to make the most beneficial decision for your business, so we offer a free sample that you can download by submitting the below form

By GlobalData
Visit our Privacy Policy for more information about our services, how we may use, process and share your personal data, including information of your rights in respect of your personal data and how you can unsubscribe from future marketing communications. Our services are intended for corporate subscribers and you warrant that the email address submitted is your corporate email address.

With this expanded footprint, Kodiak expects to further establish its presence in important operational regions such as the Permian Basin and Eagle Ford Shale.

Kodiak CEO Mickey McKee said: “I am excited to announce the acquisition of CSI Compressco, a highly accretive and leverage-neutral transaction that we believe will unlock significant value for both Kodiak shareholders and CSI Compressco unitholders. 

“The increased scale provided by the industry’s largest contract compression fleet will allow Kodiak to continue to provide the highest level of service in the industry to our customers, many of which are themselves undergoing consolidation.”

CSI Compressco CEO John Jackson said: “The combination of Kodiak and CSI Compressco creates the market leader in compression infrastructure, with significant scale and a diversified customer base. 

“CSI Compressco unitholders will benefit from their ownership in Kodiak in multiple ways – particularly the scale of the combined companies, a strong balance sheet and an attractive dividend.”

Upon completion, which is expected to occur in the second quarter of 2024, CSI Compressco shareholders will own around 14% of the combined entity. 

The board of directors of Kodiak and CSI Compressco have approved the transaction, which is subject to regulatory approval and other closing conditions.