EQT Completes Exit from Kodiak, Transforming Gas Compression Industry

EQT's Significant Exit from Kodiak Gas Services

EQT, a prominent player in the investment landscape, has finally divested its remaining stake in Kodiak Gas Services, a key provider of natural gas contract compression services across the United States. This marks the conclusion of a robust partnership that lasted nearly seven years, showcasing the growth and transformation of Kodiak under EQT's stewardship.

Founded in 2011 and based in Houston, Texas, Kodiak Gas Services has grown into one of North America's largest contract compression companies. This transformation has been pivotal for the business, expanding its capabilities in a sector that plays a crucial role in the energy supply chain, particularly as the demand for natural gas continues to escalate in the U.S.

During EQT's investment period, which began in 2019, Kodiak underwent a remarkable transformation. The company not only expanded its fleet, focusing on high-horsepower compression equipment, but also executed multiple strategic acquisitions and invested heavily in digital innovations. These enhancements have driven the optimization of asset performance and contributed to reducing emissions — a critical focus in today's environmentally-conscious business climate.

Metric indicators reflect the success of this partnership: Kodiak's revenue and EBITDA increased by over eight times, and its workforce expanded by more than 400%, reaching just over 1,300 employees. Additionally, in a significant milestone for the company, Kodiak went public in 2023, listing on the New York Stock Exchange (NYSE KGS).

EQT's exit strategy involved a series of gradual sell-downs over a 30-month period following Kodiak's IPO. Throughout this phase, EQT continued to support Kodiak's transformation into a public entity, ensuring a seamless transition while maintaining confidence in its future potential.

Alex Darden, the Partner and Head of EQT Infrastructure Advisory Team Americas, emphasized the success of their collaboration, stating, "Kodiak's journey exemplifies the impact of long-term, responsible ownership in cultivating mission-critical businesses that are resilient and purpose-driven. We have enhanced their service capabilities and set a strong foundation for future growth."

Mickey McKee, President and CEO of Kodiak, echoed Darden's sentiments, praising the partnership with EQT for its emphasis on disciplined growth. He noted, "Together, we built one of the largest contract compression platforms in North America, setting benchmarks for performance, safety, and sustainability. With our solid groundwork, we are well-positioned for continued expansion..."

EQT's exit from Kodiak is a significant tactical move that highlights the investment firm's strategy to build long-lasting, impactful businesses. Kodiak Gas Services, now on its trajectory of growth as a public company, is poised to remain a prominent figure in the gas compression industry, enhancing energy infrastructure in the U.S. and addressing the growing demands of the energy market moving forward.

In summary, this milestone not only reflects EQT's commitment to operational excellence and sustainability but also underscores the vital role that Kodiak will play in the evolving energy landscape. With an eye towards the future and a commitment to customer service, Kodiak Gas Services is ready to solidify its reputation as an industry leader for years to come.