Contract compression provider Kodiak Gas Services made its public debut on the New York Stock Exchange June 29.
The Montgomery, Texas-based company priced its IPO of 16 million shares at $16 per share, according to Securities and Exchange Commission Filings. The lion’s share of Kodiak’s fleet is deployed in the Permian Basin.
That’s down from earlier this month, when Kodiak was aiming to price its IPO at between $19 and $22 per share.
Kodiak said it anticipated raising net proceeds of between $230.4 million and $266.5 million through the offering after subtracting estimated expenses—and if underwriters exercise in full their option to purchase 2.4 million additional shares of Kodiak common stock.
The offering is expected to close on July 3.
Kodiak plans to use the proceeds from the IPO to help repay $300 million in outstanding debts.
The company’s stock price was down around 1% at $15.85 per share when markets closed on June 29, according to Yahoo Finance data.
Kodiak operates a fleet of contract compression assets for natural gas and oil customers. The vast majority of its compression horsepower — 70% — is positioned in the Permian, and the company also has a notable presence in the Eagle Ford Shale (14%).
Kodiak also has revenue-generating horsepower deployed in the Powder River Basin, the Midcontinent, Appalachia, the Denver-Julesburg Basin and the Haynesville Shale.
The company’s compression operations generated sales of around $177 million during the first quarter, Kodiak disclosed in regulatory filings.
Goldman Sachs, J.P. Morgan and Barclays are serving as lead book-running managers for Kodiak’s public offering. Latham & Watkins provided legal advice on the IPO.
RELATED: Kodiak Gas Services Aims for $1.65B Valuation in US IPO
Recommended Reading
CEO: Coterra ‘Deeply Curious’ on M&A Amid E&P Consolidation Wave
2024-02-26 - Coterra Energy has yet to get in on the large-scale M&A wave sweeping across the Lower 48—but CEO Tom Jorden said Coterra is keeping an eye on acquisition opportunities.
Exxon Mobil, Chevron See Profits Fall in 1Q Earnings
2024-04-26 - Chevron and Exxon Mobil are feeling the pinch of weak energy prices, particularly natural gas, and fuels margins that have cooled in the last year.
The One Where EOG’s Stock Tanked
2024-02-23 - A rare earnings miss pushed the wildcatter’s stock down as much as 6%, while larger and smaller peers’ share prices were mostly unchanged. One analyst asked if EOG is like Narcissus.
Matador Resources Announces Quarterly Cash Dividend
2024-04-18 - Matador Resources’ dividend is payable on June 7 to shareholders of record by May 17.
Uinta Basin: 50% More Oil for Twice the Proppant
2024-03-06 - The higher-intensity completions are costing an average of 35% fewer dollars spent per barrel of oil equivalent of output, Crescent Energy told investors and analysts on March 5.