Kodiak Gas Services Inc. (NYSE: KGS) completed the purchase of over 20,000 horsepower of compression assets from an oil and gas producer in the Permian Basin for $24 million, according to a company statement.

The acquired compression equipment will be used to provide contract compression services to the seller under a seven-year service agreement. The company expects the assets to generate more than $7 million in incremental annualized revenues.

The compression assets will be integrated into Kodiak's existing operations in Texas and New Mexico. The transaction expands the company's presence in the Permian Basin.

"This transaction underscores Kodiak's strategy of deploying capital into high-quality, long-duration commercial opportunities with premier operators," said Mickey McKee, president and CEO of Kodiak Gas Services.

Following this acquisition, Kodiak projects full year 2026 growth capital expenditures to range between $245 million and $275 million, excluding any capital expenditures related to the pending acquisition of Distributed Power Solutions, LLC. The company expects new units plus the units from this acquisition to add approximately 170,000 compression horsepower in 2026.

Kodiak Gas Services is a contract compression services provider serving oil and gas producers and midstream customers. The company is headquartered in The Woodlands, Texas.