Kodiak Gas Services Announces Public Offering of Common Stock by Selling Stockholder
14 November 2024 - 10:05PM
Business Wire
Kodiak Gas Services, Inc. (NYSE: KGS) (“Kodiak” or the
“Company”) today announced the commencement of an underwritten
public offering (the “Offering”) of 4,853,556 shares of its common
stock by an affiliate of the funds known as EQT Infrastructure III
and EQT Infrastructure IV (the “selling stockholder”). The selling
stockholder intends to grant the underwriters a 30-day option to
purchase up to an additional 728,034 shares of the Company’s common
stock. Kodiak will not sell any shares of its common stock in the
Offering and will not receive any proceeds from the sale of the
shares of its common stock being offered by the selling
stockholder. The Offering is subject to market and other
conditions, and there can be no assurance as to whether or when the
Offering may be completed.
In addition, the Company intends to purchase from the selling
stockholder in a private transaction $15 million of common stock at
a price per share equal to the public offering price (the “Share
Repurchase”). Notwithstanding the foregoing, the number of shares
of common stock to be offered in the Offering will be equal to
6,000,000 shares less the number of shares the Company would
repurchase based on the public offering price. The Offering is not
conditioned upon the closing of the Share Repurchase, but the Share
Repurchase is conditioned upon the closing of the Offering. The
Share Repurchase is being made pursuant to the Company’s existing
$50.0 million share repurchase program. On November 14, 2024, the
Company announced that its Board of Directors authorized a share
repurchase program, beginning on the date thereof and continuing
through and including December 31, 2025. After the completion of
the Share Repurchase described above, there will be $35.0 million
remaining under the Company’s share repurchase program.
Barclays, Goldman Sachs & Co. LLC and J.P. Morgan are acting
as joint book-running managers for the Offering. The Offering will
be made only by means of a prospectus supplement and the
accompanying base prospectus, which was filed as part of an
automatic shelf registration statement on Form S-3 (File No.
333-280737), which was filed with the Securities and Exchange
Commission (the “SEC”) and became effective on July 10, 2024.
Before you invest, you should read the prospectus in that
registration statement and other documents the Company has filed
with the SEC for more complete information about the Company and
the Offering. Copies of the preliminary prospectus supplement and
accompanying base prospectus relating to the Offering, as well as
copies of the final prospectus supplement once available, may be
obtained for free on the SEC’s website at www.sec.gov or by
contacting: Barclays Capital Inc., c/o Broadridge Financial
Solutions, 1155 Long Island Avenue, Edgewood, NY 11717, by phone at
1-888-603-5847 or by email at barclaysprospectus@broadridge.com;
Goldman Sachs & Co. LLC, Prospectus Department, 200 West
Street, New York, NY 10282, telephone: 1-866-471-2526, facsimile:
212-902-9316 or by emailing Prospectus-ny@ny.email.gs.com; and J.P.
Morgan Securities LLC, c/o Broadridge Financial Solutions, 1155
Long Island Avenue, Edgewood, NY 11717, by email at
prospectus-eq_fi@jpmchase.com and
postsalemanualrequests@broadridge.com.
There shall not be any sale of these securities in any state or
jurisdiction in which an offer, solicitation or sale would be
unlawful prior to registration or qualification under the
securities laws of any such state or jurisdiction.
About Kodiak
Kodiak is the largest contract compression services provider in
the United States, serving as a critical link in the infrastructure
that enables the safe and reliable production and transportation of
natural gas and oil. Headquartered in The Woodlands, Texas, Kodiak
provides contract compression and related services to oil and gas
producers and midstream customers in high–volume gas gathering
systems, processing facilities, multi-well gas lift applications
and natural gas transmission systems.
Forward-Looking Statements
This press release includes “forward-looking statements” for
purposes of the safe harbor provisions of the Private Securities
Litigation Reform Act of 1995, Section 27A of the Securities Act of
1933, as amended, and Section 21E of the Securities Exchange Act of
1934, as amended. Forward-looking statements are statements other
than statements of historical fact. Forward-looking statements can
be identified by words such as: “anticipate,” “intend,” “plan,”
“goal,” “seek,” “believe,” “project,” “estimate,” “expect,”
“strategy,” “future,” “likely,” “may,” “should,” “will” and similar
references to future periods. They include statements regarding the
Offering, including the completion thereof. Although Kodiak
believes the expectations and forecasts reflected in the
forward-looking statements are reasonable, Kodiak can give no
assurance they will prove to have been correct. They can be
affected by inaccurate or changed assumptions or by known or
unknown risks and uncertainties. Important risks, assumptions and
other important factors that could cause future results to differ
materially from those expressed in the forward-looking statements
are described under “Risk Factors” in Item 1A of Kodiak’s annual
report on Form 10-K for the year ended December 31, 2023 and any
updates to those factors set forth in Kodiak’s subsequent quarterly
reports on Form 10-Q or current reports on Form 8-K. Kodiak
undertakes no obligation to release publicly any revisions to any
forward-looking statements, to report events or to report the
occurrence of unanticipated events.
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version on businesswire.com: https://www.businesswire.com/news/home/20241114071866/en/
Investor Contact: Graham Sones, VP – Investor Relations
ir@kodiakgas.com (936) 755-3529
Kodiak Gas Services (NYSE:KGS)
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