Kodiak Gasoline Providers Inc. is holding a two-tranche debt instrument sale with a mixed principal quantity of $1.2 billion to refinance current debt.
The Woodlands, Texas-based supplier of oil and gasoline compression and associated companies is providing $600 million senior unsecured notes due 2033 with a 6.5 p.c curiosity and $600 million senior unsecured notes maturing 2035 with a 6.75 p.c curiosity.
Kodiak expects to shut the providing Friday topic to customary closing circumstances.
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“The notes will likely be issued at par and will likely be assured on a senior unsecured foundation by the corporate, its current subsidiaries and sure of its future U.S. subsidiaries that assure the issuer’s revolving asset-based mortgage credit score facility (the ABL Facility)”, it mentioned in an announcement on its web site.
“The issuer intends to make use of the online proceeds from the providing to repay a portion of the excellent indebtedness below the ABL Facility.
“In reference to such compensation, the corporate intends to enter into an modification to the ABL Facility that can, amongst different issues, cut back complete commitments to $2.0 billion and prolong the maturity date”.
As of the tip of the second quarter Kodiak had $2.6 billion in debt excellent, primarily from the ABL Facility and senior notes due 2029. As of the interval, the corporate had $366.4 million accessible from the ABL Facility, based on its quarterly report August 6.
Present liabilities as of June totaled $313.32 million together with $50.39 million in accounts payable.
Present belongings stood at $345.53 million together with $5.43 million in money and money equivalents.
Income for 2Q 2025 was $322.84 million, down from $329.64 million for 1Q 2025 however up from $309.65 million for 2Q 2024.
Web revenue landed at $39.5 million, in comparison with $30.41 million for the prior three-month interval and $6.23 million for 2Q 2024. Earnings per share of $0.43 assuming dilution set a file for the corporate.
EBITDA adjusted for nonrecurring gadgets additionally rose each quarter-on-quarter and year-on-year to a file $178.22 million.
Free money circulation was additionally a file $70.29 million, in comparison with $47.22 million for 1Q 2025 and $638,000 for 2Q 2024.
Kodiak raised its share repurchase program by $100 million to $115 million and prolonged this system’s expiry to December 2026.
“Regardless of the challenges posed by international financial instabilities and vitality market dynamics, our production-focused enterprise mannequin stays sturdy”, mentioned Kodiak president and chief govt Mickey McKee.
“As we glance forward, the extremely seen Permian Basin pure gasoline manufacturing development mixed with the robust demand outlook pushed by energy demand for knowledge facilities and home LNG tasks reinforce our confidence within the long-term development prospects for contract compression”, McKee added.
“The significant improve in our share repurchase program displays that confidence and underscores Kodiak’s dedication to returning capital to shareholders”.
On Monday Kodiak introduced the appointment of William L. Bullock Jr, former govt vice chairman and chief monetary officer of ConocoPhillips, to its board of administrators with quick impact.
Kodiak mentioned within the announcement that Nirav Shah, considered one of two administrators appointed by an affiliate of the funds referred to as EQT Infrastructure III and EQT Infrastructure IV, had resigned from its board.
“Mr Shah’s resignation displays the diminished management of Kodiak by EQT resulting from EQT’s latest discount in possession and isn’t the results of any disagreement with the corporate or the board”, it mentioned.
“Mr Bullock replaces Mr Shah, and Kodiak’s board of administrators will proceed to include 9 members”.
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