Kodiak Gas Services prices $200 million in additional senior notes

THE WOODLANDS, Texas - Kodiak Gas Services, Inc. (NYSE:KGS) announced Thursday that its subsidiary has priced a private offering of $200 million in additional senior unsecured notes. The offering consists of $170 million in 6.500% senior unsecured notes due 2033 and $30 million in 6.750% senior unsecured notes due 2035. The company, which currently maintains a debt-to-equity ratio of 1.95 and shows strong financial health according to InvestingPro metrics, is managing its debt position while maintaining profitable operations.

The offering is expected to close on September 22, 2025, subject to customary closing conditions. The company plans to use the net proceeds to repay a portion of its outstanding debt under its revolving asset-based loan credit facility.

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

Kodiak Gas Services provides contract compression services in the United States, serving as part of the infrastructure that enables natural gas and oil production and transportation. Based in The Woodlands, Texas, the company offers compression and related services to oil and gas producers and midstream customers.

This information is based on a press release statement from the company.

In other recent news, Kodiak Gas Services has been active with several financial maneuvers. The company announced a private offering of $1.2 billion in senior unsecured notes, divided into two tranches of $600 million each, with maturities in 2033 and 2035. In another financial move, Kodiak Gas Services launched an additional $200 million in 6.500% senior unsecured notes due in 2033, intending to use the proceeds to repay part of its revolving asset-based loan credit facility.

An affiliate of EQT Infrastructure is set to sell 10 million shares of Kodiak’s common stock in an underwritten public offering, with Goldman Sachs & Co. LLC as the sole underwriter. Kodiak will not sell any shares nor receive any proceeds from this transaction.

In analyst news, Stifel has reiterated its Buy rating on Kodiak Gas Services, maintaining a price target of $47. This reflects the firm’s updated estimates for the company, considering various influencing factors. These developments represent significant financial activities for Kodiak Gas Services.

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