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What Kodiak Gas Services (KGS)'s EQT Exit and Board Power Shift Means For Shareholders

Simply Wall St · 1d ago
  • In early December 2025, Frontier TopCo Partnership, an affiliate of EQT Infrastructure funds, completed an underwritten secondary sale of 9,762,573 Kodiak Gas Services shares at US$34.60 each, raising about US$335.50 million, with Kodiak itself neither issuing new stock nor receiving any proceeds.
  • The sale removes EQT as a shareholder and ends its board nomination rights, potentially reshaping Kodiak’s governance and future decision-making power balance.
  • We’ll now examine how EQT’s full exit and the loss of its board nomination rights could influence Kodiak Gas Services’ investment narrative.

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Kodiak Gas Services Investment Narrative Recap

To own Kodiak Gas Services, you need to believe in sustained demand for large horsepower gas compression and the company’s ability to convert that into growing cash flow despite its capital intensity and leverage. EQT’s full exit via the secondary sale looks more like a change in the shareholder register than a shift in fundamentals, so it does not materially alter the near term demand catalyst or the key risk around potential overcapacity in a capital intensive business.

The recent secondary offering sits alongside a busy year of capital markets activity for Kodiak, but the most relevant context is the company’s Q3 2025 update, where management highlighted record Contract Services revenue and strong demand for compression services despite a one off Mexico related fee. That backdrop helps frame EQT’s departure as a governance and ownership change occurring while core operating conditions and utilization remain central to the Kodiak story.

However, investors should also understand how Kodiak’s focus on large horsepower compression could leave it more exposed if utilization or pricing were to soften...

Read the full narrative on Kodiak Gas Services (it's free!)

Kodiak Gas Services' narrative projects $1.5 billion revenue and $293.4 million earnings by 2028.

Uncover how Kodiak Gas Services' forecasts yield a $44.20 fair value, a 20% upside to its current price.

Exploring Other Perspectives

KGS Community Fair Values as at Dec 2025
KGS Community Fair Values as at Dec 2025

Three members of the Simply Wall St Community see fair value for Kodiak between US$44.20 and about US$135.92, showing how far apart individual views can be. Against that wide range, the key reliance on robust Permian and broader gas driven compression demand means readers may want to weigh how concentrated this growth engine is for Kodiak’s longer term performance.

Explore 3 other fair value estimates on Kodiak Gas Services - why the stock might be worth over 3x more than the current price!

Build Your Own Kodiak Gas Services Narrative

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.