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Highlights

  • Repurchase covers 1.51 million shares at USD 33.14 per share.
  • Selling Stockholder’s ownership falls below 35%, reducing governance rights under prior agreement.
  • USD 65 million remains available under existing share repurchase program.

Kodiak Gas Services, Inc. (NYSE: KGS) has announced the repurchase of USD 50 million of its common stock from Frontier TopCo Partnership, L.P., an affiliate of EQT Infrastructure III and EQT Infrastructure IV funds. The transaction, approved unanimously by a special committee of independent directors, is part of Kodiak’s expanded share repurchase authorization.

Under the agreement, Kodiak will buy back 1,508,750 shares at a price of USD 33.14 per share, reflecting the closing price on August 11, 2025. The repurchase is expected to close on August 12, 2025, subject to customary conditions and representations. Following the transaction, the Selling Stockholder’s ownership stake will fall to below 35% of Kodiak’s outstanding common shares.

The transaction reduces the Selling Stockholder’s governance rights under the existing Stockholders’ Agreement dated July 3, 2023. Most notably, the Selling Stockholder will now be entitled to designate or nominate only one director to Kodiak’s board, and its approval will no longer be required for certain corporate actions.

Following this buyback, Kodiak will still have approximately USD 65 million available under its share repurchase program. The company has indicated that share repurchases remain an integral part of its capital allocation policy, and it will continue to evaluate such actions as a means of returning capital to shareholders.

The repurchase marks a notable reduction in ownership concentration and could lead to a shift in board dynamics. It also reflects the company’s willingness to deploy significant capital to manage its equity structure while maintaining liquidity for future corporate purposes.

Kodiak provides contract compression services to the U.S. oil and gas industry, operating in natural gas gathering systems, processing facilities, multi-well gas lift applications, and natural gas transmission systems. Headquartered in The Woodlands, Texas, the company plays a role in enabling the production and transportation of natural gas and oil through its large-scale compression fleet and related services.