US Gas Company Discloses Possible Payments Involving Designated Terror Groups
Kodiak Gas Services, a natural gas company headquartered in Texas, likely made payments involving people “associated” with Foreign Terrorist Organizations and Specially Designated Global Terrorists, the company disclosed in an SEC filing this month.
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Kodiak said it discovered the issue during the first quarter of 2025 after receiving a report about payments to Mexican government officials that “commenced” before its acquisition of its Mexican affiliate in April 2024. The company then hired outside counsel to investigate the payments, the filing said, “including whether any payments made may be indirectly benefiting individuals associated with certain criminal cartel organizations,” including designated terror groups.
“The investigation is substantially complete and has determined that certain payments likely were made to persons associated with an organization designated as SDGT,” Kodiak said. “The payments appear to have been made in order to protect employees of the Mexican business from threats of harm or harassment, and to ensure access to work sites. At this time, the Company believes the aggregate amount of these payments was not material. The company sold its operations and legal entities in Mexico on September 30, 2025.”