Kodiak Gas Services announced that it has completed the acquisition of more than 20,000 horsepower of large horsepower compression assets in the Permian Basin for $24 million, strengthening its position in one of North America’s most active oil and gas regions.
The acquired assets will be deployed under a seven-year contract compression services agreement with the seller, and are expected to generate more than $7 million in incremental annualized revenue. The equipment will be integrated into Kodiak’s existing operations across Texas and New Mexico, expanding its footprint and supporting continued growth in the basin.
The transaction aligns with Kodiak’s strategy of investing in long-duration, high-quality commercial opportunities with leading operators. The company indicated that the deal is expected to be accretive and contribute to shareholder value through stable, multiyear contracted cash flows.
Including this acquisition, Kodiak expects its 2026 growth capital expenditures, excluding spending tied to its pending acquisition of Distributed Power Solutions LLC, to range between $245 million and $275 million. The company also anticipates that new units combined with the acquired assets will add approximately 170,000 horsepower to its fleet in 2026.
Kodiak, headquartered in The Woodlands, Texas, provides contract compression and related services to oil and gas producers and midstream customers, supporting critical infrastructure across gas gathering systems, processing facilities, gas lift applications, and natural gas transmission systems.
KEY QUOTE:
“This transaction underscores Kodiak’s strategy of deploying capital into high-quality, long-duration commercial opportunities with premier operators, and further strengthens our leading position in the Permian Basin. The multiyear contracted cash flows and quality return characteristics are expected to drive incremental value for our shareholders.”
Mickey McKee, President and Chief Executive Officer, Kodiak Gas Services, Inc.
