Kodiak Gas Services rises after buyout deal for rival Compressco

CSI Compressco LP

19/12/2023 19:16

** Shares of oilfield services firm Kodiak Gas Services
 KGS.N  rise 2.3% to $19.57
    ** Co to acquire peer CSI Compressco  CCLP.O  in all-stock
deal valued at around $854 mln, including net debt of $619 mln
    ** CCLP unitholders to receive 0.086 shares of Kodiak stock
per unit owned as per terms of the deal, reflecting a 2.65%
discount from CCLP's last close price
    ** Kodiak says deal to be immediate accretive to its free
cash flow and leverage-neutral to Kodiak after synergies  
    ** The deal, expected to close by Q2 2024, will give Kodiak
largest contract compression fleet in oil and gas industry - KGS
 
    ** CCLP down 5.3% at $1.60
    ** KGS has risen 24.5% since its listing in June, CCLP has
risen 20.3% YTD 
    

 (Reporting by Kabir Dweit)
 ((Kabir.Dweit@thomsonreuters.com))