In a recent filing with the Securities and Exchange Commission, Frontier TopCo Partnership, L.P. reported the sale of 6,565,217 shares of Kodiak Gas Services, Inc. (NYSE:KGS) common stock. This transaction, which took place on November 14, 2024, was executed at an average price of $33.2063 per share, amounting to a total of approximately $218 million.
Following this sale, Frontier TopCo Partnership holds 44,434,783 shares of Kodiak Gas Services. Additionally, on November 18, 2024, the company reported a further disposition of 434,783 shares, which were repurchased by Kodiak Gas Services at a price of $34.50 per share, totaling around $15 million.
These transactions reflect significant activity by Frontier TopCo Partnership in its holdings of Kodiak Gas Services, a company specializing in transmission. The shares are held indirectly by Frontier TopCo Partnership through its general partner, Frontier TopCo GP, LLC, with EQT (ST:) Fund Management S.a r.l. having control over the investment decisions.
In other recent news, Kodiak Gas Services reported robust earnings and revenue results, with an EBITDA of $154 million closely aligning with expectations, and a projected run-rate EBITDA of $162 million after adjustments for non-recurring items. The company increased its quarterly cash dividend by 8% to $0.41 per share and authorized a $50 million stock repurchase program. Additionally, Kodiak initiated a public offering of approximately 6.14 million shares by an affiliate of EQT Infrastructure funds and plans to repurchase $15 million of its common stock from the selling stockholder.
The company has also filed a prospectus supplement allowing certain selling stockholders to resell up to 5,562,273 shares of its common stock. In terms of analyst coverage, RBC Capital Markets maintained its Outperform rating on Kodiak shares and increased the company’s price target to $40.00. Mizuho (NYSE:) initiated coverage on the stock with an Outperform rating and a price target of $36.00, while Citi also initiated coverage on the company, assigning a Buy rating. These are among the recent developments for Kodiak Gas Services.
InvestingPro Insights
The recent stock sales by Frontier TopCo Partnership align with several key metrics and trends observed in Kodiak Gas Services’ (NYSE:KGS) financial performance. According to InvestingPro data, Kodiak Gas Services has demonstrated strong growth, with a revenue increase of 33.77% over the last twelve months as of Q3 2024,…
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