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
Kimmeridge Fast Forwards on SilverBow with Takeover Bid
2024-03-13 - Investment firm Kimmeridge Energy Management, which first asked for additional SilverBow Resources board seats, has followed up with a buyout offer. A deal would make a nearly 1 Bcfe/d Eagle Ford pureplay.
M4E Lithium Closes Funding for Brazilian Lithium Exploration
2024-03-15 - M4E’s financing package includes an equity investment, a royalty purchase and an option for a strategic offtake agreement.
Laredo Oil Subsidiary, Erehwon Enter Into Drilling Agreement with Texakoma
2024-03-14 - The agreement with Lustre Oil and Erehwon Oil & Gas would allow Texakoma to participate in the development of 7,375 net acres of mineral rights in Valley County, Montana.
California Resources Corp. Nominates Christian Kendall to Board of Directors
2024-03-21 - California Resources Corp. has nominated Christian Kendall, former president and CEO of Denbury, to serve on its board.
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.