Kodiak Gas Services completed its acquisition of CSI Compressco, creating the industry's largest contract compression fleet.
The deal, announced in December, was an all-equity transaction valued at approximately $854 million, including assumption of $619 million in debt, Kodiak said on April 1.
CSI Compressco unitholders received 0.086 shares of Kodiak common stock for each CSI Compressco common unit owned. Certain CSI Compressco unitholders meeting specified requirements were elected to receive 0.086 limited liability company units representing economic interests in Kodiak's operating subsidiary (along with an equal number of shares of non-economic voting preferred stock of Kodiak) for each CSI Compressco common unit they held.
Each unit will be redeemable at the option of the holder for one share of Kodiak common stock following a six-month post-closing lock-up and subject to certain conditions.
Mickey McKee, Kodiak's founder and CEO, said the transaction allows the company to increase its scale and scope of our service offerings, “further expanding our industry-leading footprint in key operating areas such as the Permian Basin and Eagle Ford Shale.”
CSI Compressco units will no longer be publicly traded on the NASDAQ effective as of close of trading on April 1. Kodiak shares will continue to trade on the New York Stock Exchange.
Recommended Reading
US Drillers Add Most Oil, Gas Rigs in a Week Since September
2024-03-15 - The oil and gas rig count, an early indicator of future output, rose by seven to 629 in the week to March 15.
US Drillers Add Most Oil Rigs in a Week Since November
2024-02-23 - The oil and gas rig count rose by five to 626 in the week to Feb. 23
US Oil, Gas Rig Count Rises to Highest Since September: Baker Hughes
2024-03-01 - The U.S. oil and natural gas rig count is at its highest since September 2023.
US Drillers Cut Oil, Gas Rigs for Second Time in Three Weeks
2024-02-16 - Baker Hughes said U.S. oil rigs fell two to 497 this week, while gas rigs were unchanged at 121.
US Drillers Cut Oil, Gas Rigs for Third Week in a Row
2024-04-05 - The oil and gas rig count, an early indicator of future output, fell by one to 620 in the week to April 5, the lowest since early February.