Kodiak Gas Services has announced its plans to acquire CSI Compressco LP in an all-stock deal worth approximately $854 million. This includes $619 million in debt.
Expanding Footprint and Value Chain Reach
As a leading provider of contract compression infrastructure for oil-and-gas producers, Kodiak intends to deepen its presence in key areas such as the Permian Basin and Eagle Ford Shale through this acquisition. Additionally, the company aims to expand its reach within the oil-and-gas value chain by leveraging CSI Compressco's expertise in treating, gas cooling, and aftermarket services.
Enhanced Scale and Customer Service
The combined company will benefit from the increased scale provided by the industry's largest contract compression fleet. Kodiak's Chief Executive, Mickey McKee, expressed confidence that this enhanced scale will enable them to offer the highest level of service to their customers, particularly as many of them undergo consolidation.
Stock Exchange Details
Under the terms of the deal, CSI Compressco unitholders will receive 0.086 shares of Kodiak common stock for each CSI Compressco common unit they hold. Once the transaction is successfully completed, CSI Compressco unitholders can expect to own approximately 14% of the combined company on a fully diluted basis.
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