Kodiak Gas Services Expands into Power Generation

By Chris Stiles • Thursday, April 02 10:23 • Permanent Link

Kodiak Gas Services completed its acquisition of Distributed Power Solutions, adding about 395 megawatts of generation capacity and pushing the company beyond contract compression into distributed and behind-the-meter power generation.

The deal was closed for $587 million in cash, including adjustments tied to additional power generation assets purchased after the transaction was announced, assumed debt and working capital. Kodiak also issued about 2.4 million shares of common stock as part of the consideration.

The acquired business has been renamed Kodiak Power Solutions and will operate as a division of Kodiak Gas Services. Kodiak said the acquisition expands its customer base into data centers, microgrids, manufacturing and energy infrastructure.

Management said the transaction is expected to be immediately accretive to earnings and discretionary cash flow per share, while extending the duration and stability of contracted cash flows. Integration work has already begun. Today the company's shares have moved -0.64% to a price of $58.74. For more information, read the company's full 8-K submission here.

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