Kodiak Gas Services prices $1.2 billion in senior unsecured notes

THE WOODLANDS, Texas - Kodiak Gas Services, Inc. (NYSE:KGS), a $3.09 billion market cap company with strong financial health according to InvestingPro analysis, announced Tuesday that its subsidiary has priced a private offering of $1.2 billion in senior unsecured notes in two separate tranches.

The offering consists of $600 million in 6.500% senior unsecured notes due October 1, 2033, and $600 million in 6.750% senior unsecured notes due October 1, 2035. The notes will be issued at par and guaranteed on a senior unsecured basis by Kodiak Gas Services, Inc., its existing subsidiaries, and certain future U.S. subsidiaries that guarantee the company’s revolving asset-based loan credit facility.

The transaction is expected to close on September 5, 2025, subject to customary closing conditions.

According to the company’s statement, proceeds from the offering will be used to repay a portion of the outstanding indebtedness under its asset-based loan credit facility. Kodiak also plans to amend the facility to reduce total commitments to $2.0 billion and extend the maturity date.

The notes are being offered only to qualified institutional buyers under Rule 144A or non-U.S. persons under Regulation S, and will not be registered under the Securities Act of 1933.

Kodiak Gas Services is a contract compression services provider in the United States, serving oil and gas producers and midstream customers in gas gathering systems, processing facilities, gas lift applications, and natural gas transmission systems.

The information in this article is based on a press release statement from the company.

In other recent news, Kodiak Gas Services reported strong financial results for the second quarter of 2025. The company achieved earnings per share of $0.43, surpassing analyst forecasts of $0.40, and generated revenue of $322.84 million, significantly exceeding the expected $230.46 million. Additionally, Kodiak Gas Services announced a $50 million repurchase of its common stock from Frontier TopCo Partnership, L.P., an affiliate of EQT Infrastructure funds. This buyback involved 1,508,750 shares at $33.14 each.

On the analyst front, Stifel reiterated its Buy rating on Kodiak Gas Services, maintaining a price target of $47. Meanwhile, Raymond James adjusted its price target to $48 from $51, although it kept an Outperform rating. Raymond James noted improvements in Kodiak’s core Contract Compression business, despite a weaker outlook for Other Services in the latter half of 2025. These developments reflect Kodiak’s efforts to enhance its business operations and shareholder value.

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