Kodiak Gas Services has acquired more than 20,000 horsepower of large-horsepower compression assets from an oil and gas producer operating in the Permian Basin.
The deal, valued at about $24 million, will support Kodiak's contract compression services and is tied to a seven-year service agreement under which the company will provide compression services to the seller.
Kodiak said the assets are expected to generate more than $7 million in incremental annualized revenue, making the acquisition immediately accretive to the company’s financial performance.
The deal also contributes to Kodiak's broader growth plans, with the company expecting the combined impact of new equipment and acquisitions to add roughly 170,000 compression horsepower in 2026.