CCLP - Kodiak Gas Services to acquire CSI Compressco in an $854M all-equity deal

2023-12-19 06:21:01 ET

• Kodiak Gas Services ( NYSE: KGS ) to acquire CSI Compressco ( NASDAQ: CCLP ) in an all-equity transaction valued at approximately $854 million, including the assumption of $619 million of net debt, deepening its footprint in key operating areas such as the Permian Basin and Eagle Ford Shale.
• CSI Compressco unitholders will receive 0.086 shares of Kodiak common stock for each CSI Compressco common unit owned.
• The addition of CSI Compressco's fleet will give Kodiak the largest contract compression fleet in the industry with 4.3 million revenue-generating horsepower, while also extending Kodiak's service offerings deeper into the natural gas value chain, Kodiak Gas Services ( KGS ) Tuesday reported.
• The combined entity is expected to generate approximately $630 million in 2024 Adjusted EBITDA after the expected annual run-rate cost synergies of at least $20 million.
• The transaction is expected to be immediately accretive to Kodiak's Discretionary Cash Flow and Free Cash Flow per share, and leverage-neutral to Kodiak after expected synergies.
• Source: Press Release

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