Amid a rapid, ongoing wave of E&P consolidation, Kodiak Gas Services closed an under-the-radar deal in April to acquire CSI Compressco and create the industry’s largest contract compression fleet.
With fewer potential customers churning out oil and gas amid fragmented oilfield services and midstream sectors, contractors realize they need to catch up to do more business with the biggest players producing record-high U.S. volumes.
Led by megadeals from Exxon Mobil and Chevron, the upstream sector completed nearly $250 billion in M&A transactions from the beginning of 2023 through March. That leaves the OFS space now playing chase with E&Ps that don’t seem interested in slowing the dealmaking race.