The EQT Infrastructure III fund (“EQT” or “EQT Infrastructure”) today announced that it has acquired Kodiak Gas Services, LLC (“Kodiak” or the “Company”) from The Stephens Group, LLC, a private investment firm representing the interests of Witt Stephens, Jr. and Elizabeth Campbell. Kodiak will maintain its corporate headquarters in Houston, Texas, under the continued leadership of President Mickey McKee, CEO David Marrs, and the Kodiak management team. Terms of the transaction were not disclosed.
Founded in 2011, Kodiak is the largest privately owned contract compression company in the US; providing necessary compression equipment for the extraction of oil and transportation of natural gas in the United States. With over 1,130,000 revenue generating horsepower (“HP”) deployed across key basins, Kodiak has a differentiated offering focused on exceptional customer service and technical performance. Kodiak leverages its scale, multi-decade operational experience, strong customer relationships and leading data analytics and integration to deliver best in class service and mechanical availability.
EQT will support Kodiak in its next phase of development as the Company focuses on continued expansion with existing and new customers, further strengthening its technology platform and enhancing the Company’s service offering. Moreover, EQT will leverage its bench of Industrial Advisors with extensive experience in the Energy and Midstream sectors to enhance growth and operational efficiencies.
Alex Darden, Partner at EQT Partners, Investment Advisor to EQT Infrastructure, commented: “Kodiak’s differentiated service offering, strong commitment to customers and critical infrastructure at every juncture in the oil and gas value chain make the Company unique in their industry, embodying EQT Infrastructure’s approach of targeting high-quality, industry leading, stable businesses with transformation potential. We are impressed with Kodiak’s continued transformation through data implementation and strong growth and believe that the Company’s ambition and people will continue to have positive impacts going forward. We are excited to help build and shape the next phase of development for Kodiak and look forward to working with such a talented group of people and outstanding executive management team who share the same culture, values and drive as EQT.”
“We are extremely excited to be partnering with EQT to continue to grow Kodiak as the premier provider of contract compression services in the U.S. EQT brings a wealth of knowledge to our partnership and together, we will create a platform to continue to attract the best customers, in the best basins, to provide the highest level of contract compression services in the business,” commented Mickey McKee, President of Kodiak. “With our focus on the essential, large horsepower infrastructure-type compression applications, coupled with our relentless commitment to runtime and customer service, Kodiak is well-positioned to continue to profitably grow and take market share.”
“The EQT Team understands the critical nature of contract compression in serving our nation’s energy infrastructure. EQT’s partnership with Kodiak will allow us to continue achieving industry leading profitability and growth rates while continuing to provide the best service in the industry,” commented David Marrs, CEO of Kodiak. “EQT has made a substantial commitment to Kodiak and we are very excited to continue this path with their support, vast industry experience and knowledge.”
Simpson Thacher & Bartlett LLP served as legal advisor to EQT Infrastructure. Jefferies LLC served as exclusive financial advisor and Kirkland & Ellis LLP acted as legal counsel to Kodiak.
HOUSTON & LONDON–(BUSINESS WIRE)–Feb. 7, 2019– Baker Hughes, a GE company (NYSE: BHGE), announced it will supply turbomachinery equipment for the construction of the Golden Pass LNG export facility in Sabine Pass, Texas. The project is expected to produce around 16 million tons per year of LNG. BHGE will provide turbomachinery equipment for three LNG trains, including six gas turbines and 12 centrifugal compressors.
This news comes as ExxonMobil and Qatar Petroleum announced a positive Final Investment Decision (FID) for the Golden Pass LNG export project and the plan to proceed with construction in the first quarter of 2019. BHGE’s technology supports the project’s goal to be the lowest cost LNG supplier on the U.S. Gulf Coast through a proven solution with optimized maintenance cycles.
“We are proud to be working with Golden Pass on this innovative LNG project,” said Rod Christie, president and CEO, Turbomachinery & Process Solutions, BHGE. “Today’s announcement builds on our 30-year-plus track record of delivering high-availability and reliable LNG technology, with low total cost of operations.”
“Our vision is to be the premier LNG exporter in North America,” Sean Ryan, president of Golden Pass LNG, said. “To accomplish that, we have to be reliable and cost competitive, and BHGE’s long history of delivering first class, large-scale LNG projects was a clear fit to help us deliver on our goal.”
BHGE’s technology for three trains will consist of six MS7001 EA heavy-duty gas turbines driving 12 centrifugal compressors. The MS7001 EA is the most utilized large industrial gas turbine available in the LNG market, with 77 units in operation in 13 countries. The MS7001 EA fleet offers best-in-class availability with proven power and extended maintenance intervals with more than 550,000 fired hours.
