Kodiak Gas Services Inc. is holding a two-tranche debt instrument sale with a combined principal amount of $1.2 billion to refinance existing debt.
The Woodlands, Texas-based provider of oil and gas compression and related services is offering $600 million senior unsecured notes due 2033 with a 6.5 percent interest and $600 million senior unsecured notes maturing 2035 with a 6.75 percent interest.
Kodiak expects to close the offering Friday subject to customary closing conditions.
“The notes will be issued at par and will be guaranteed on a senior unsecured basis by the company, its existing subsidiaries and certain of its future U.S. subsidiaries that guarantee the issuer’s revolving asset-based loan credit facility (the ABL Facility)”, it said in a statement on its website.
“The issuer intends to use the net proceeds from the offering to repay a portion of the outstanding indebtedness under the ABL Facility.
“In connection with such repayment, the company intends to enter into an amendment to the ABL Facility that will, among other things, reduce total commitments to $2.0 billion and extend the maturity date”.
As of the end of the second quarter Kodiak had $2.6 billion in debt outstanding, mainly from the ABL Facility and senior notes due 2029. As of the period, the company had $366.4 million available from the ABL Facility, according to its quarterly report August 6.
Current liabilities as of June totaled $313.32 million including $50.39 million in accounts payable.
Current assets stood at $345.53 million including $5.43 million in cash and cash equivalents.
Revenue for 2Q 2025 was $322.84 million, down from $329.64 million for 1Q 2025 but up from $309.65 million for 2Q 2024.
Net profit landed at $39.5 million, compared to $30.41 million for the prior three-month period and $6.23 million for 2Q 2024. Earnings per share of $0.43 assuming dilution set a record for the company.
EBITDA adjusted for nonrecurring items also rose both quarter-on-quarter and year-on-year to a record $178.22 million.
Free cash flow was also a record $70.29 million, compared to $47.22 million for 1Q 2025 and $638,000 for 2Q 2024.
Kodiak raised its share repurchase program by $100 million to $115 million and extended the program’s expiry to December 2026.
“Despite the challenges posed by global economic instabilities and energy market dynamics, our production-focused business model remains robust”, said Kodiak president and chief executive Mickey McKee.
“As we look ahead, the highly visible Permian Basin natural gas production growth combined with the strong demand outlook driven by power demand for data centers and domestic LNG projects reinforce our confidence in the long-term growth prospects for contract compression”, McKee added.
“The meaningful increase in our share repurchase program reflects that confidence and underscores Kodiak’s commitment to returning capital to shareholders”.
On Monday Kodiak announced the appointment of William L. Bullock Jr, former executive vice president and chief financial officer of ConocoPhillips, to its board of directors with immediate effect.
Kodiak said in the announcement that Nirav Shah, one of two directors appointed by an affiliate of the funds known as EQT Infrastructure III and EQT Infrastructure IV, had resigned from its board.
“Mr Shah’s resignation reflects the reduced control of Kodiak by EQT due to EQT’s recent reduction in ownership and is not the result of any disagreement with the company or the board”, it said.
“Mr Bullock replaces Mr Shah, and Kodiak’s board of directors will continue to consist of nine members”.
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