EQT Infrastructure to invest in Pegasus Optimization Managers

EQT Infrastructure portfolio company Kodiak Gas Services has signed a definitive agreement to acquire Pegasus Optimization Managers from affiliates of Apollo Natural Resource Partners II, L.P., a fund managed by affiliates of Apollo Global Management, Inc.

Kodiak, acquired by EQT Infrastructure in February 2019, is the largest privately owned and one of the largest contract compression companies in the US; providing necessary compression equipment for the extraction of oil and transportation of natural gas in the United States. As a result of the acquisition, Kodiak will have more than 2,500,000 revenue-generating horsepower deployed across key basins.

Founded in 2015, Pegasus is one of the market-leading providers of contract compression and related services for the oil and gas industry in North America. Servicing producers in both the upstream and midstream segments of the value chain, Pegasus provides 24/7 access to technical and mechanical support, having outperformed its 98% run-time guarantee with historical run-time of >99%. With more than 240 employees, Pegasus provides services in the Permian, Eagle Ford, Powder River and other basins of the United States with its headquarters located in College Station, Texas.

Kirkland & Ellis LLP served as legal counsel to Kodiak and EQT Infrastructure. Jefferies LLC served as exclusive financial advisor and Vinson & Elkins LLP acted as legal counsel to Pegasus and Apollo in connection with the transaction.

The transaction, which is conditioned on customary regulatory approvals, is expected to close in the fourth quarter of 2019. Financial terms of the transaction were not disclosed.