Kodiak Gas Services Inc. (Kodiak) has purchased more than 20,000 hp (14,920 kW) of large horsepower compression assets from a leading oil and gas producer in the Permian Basin for US$24 million.
Kodiak will utilize the acquired compression assets to provide contract compression services to the seller under a seven‑year service agreement, generating more than US$7 million in incremental annualized revenues. The acquired compression assets will be integrated into Kodiak’s existing operating footprint in Texas and New Mexico, expanding the company’s presence in one of the most active producing regions in North America.
“This transaction underscores Kodiak’s strategy of deploying capital into high‑quality, long‑duration commercial opportunities with premier operators, and further strengthens our leading position in the Permian Basin,” said Mickey McKee, president and chief executive officer of Kodiak. “The multiyear contracted cash flows and quality return characteristics are expected to drive incremental value for our shareholders.”
Including this transaction, Kodiak expects full year 2026 growth capital expenditures (excluding any capital expenditures related to the pending acquisition of Distributed Power Solutions LLC) to be in the range of US$245 million to US $275 million (see “Universal Plant Services Presents: 2025 CAPEX Comparison,” September 2025 Gas Compression Magazine, p. 18). Kodiak now expects the sum of new units plus the units related to this acquisition to add approximately 170,000 compression horsepower (126,820 kW) in 2026.
