EQT Completes Full Exit from Kodiak Gas Services, Signifying Major Growth in Gas Compression Sector

EQT Completes Full Exit from Kodiak Gas Services

EQT, a leading investment firm, has proudly announced the complete divestiture of its stake in Kodiak Gas Services, recognized as one of the foremost providers of gas compression services across North America. This strategic exit marks a significant milestone in EQT's investment history and highlights the notable transformation that Kodiak has undergone since its inception in 2011.

Founded in Houston, Texas, Kodiak Gas Services has rapidly evolved into a crucial player in the energy sector, offering essential compression equipment and services necessary for transporting natural gas throughout the U.S. energy pipeline. Its robust fleet of high-horsepower compressors supports major energy producers and midstream operators, laying the groundwork for secure energy provision amid increasing demands across the nation.

EQT's partnership with Kodiak began in 2019 and lasted nearly seven transformative years, during which Kodiak executed a comprehensive set of value creation strategies. Under EQT's guidance, the company expanded its operations significantly, achieving over 400% growth in its workforce, which now exceeds 1,300 employees. This expansion was not only about scaling up but also about enhancing service capabilities and innovating for the future.

The financial metrics of this period are striking, with Kodiak's revenue and EBITDA growth exceeding eight-fold—an impressive feat that underscores the company’s robust business model and strategic positioning within the highly competitive gas compression landscape. An integral part of this growth journey was Kodiak's successful initial public offering (IPO) on the New York Stock Exchange in 2023, which positioned the company for further public engagement and investment.

Throughout the investment period, EQT and Kodiak collaborated closely on initiatives aimed at bolstering operational efficiency and sustainability. The introduction of advanced digital tools and analytics played a vital role in optimizing performance while also addressing critical emissions reduction efforts. Kodiak launched its inaugural sustainability report, a tangible reflection of its commitment to responsible and environmentally conscious operational practices, ultimately establishing one of the most environmentally friendly fleets in the U.S. compression market.

Alex Darden, a partner at EQT and head of the Infrastructure Advisory Team Americas, commented on Kodiak's remarkable journey, noting that their story illustrates how thoughtful and responsible ownership can facilitate growth in essential industries. Darden expressed pride in having collaborated with Kodiak, emphasizing the groundwork laid for its ongoing advancement and market leadership.

Mickey McKee, Kodiak’s President and CEO, echoed these sentiments, thanking EQT for its partnership that emphasized disciplined growth strategies. McKee pointed out that together, they have developed one of the largest contract compression platforms in North America, achieving new benchmarks in performance and sustainability standards. With a solid foundation established during EQT's ownership, Kodiak is excited about the future and its potential for continued expansion in this dynamic industry.

As the U.S. energy landscape evolves amid rising demand, Kodiak is well-positioned to leverage its capabilities to meet these challenges, ensuring that natural gas remains a reliable source of energy for countless Americans. The exit of EQT from Kodiak signifies not just an ending but the dawn of a new chapter for both organizations, with Kodiak prepared to navigate the road ahead confidently and strategically.

This strategic exit underlines EQT's commitment not only to advancing its investment portfolio but also to continuing its role as a responsible leader in enhancing energy infrastructure. The partnerships formed with innovative companies like Kodiak Gas Services exemplify EQT's mission to support future-ready businesses grounded in operational excellence and sustainable value creation.