Kodiak Gas Services

Kodiak Gas Services, Inc. (NYSE: KGS) is a leading provider of contract compression services in the US. The company was founded in 2011 in Houston and went public in June 2023. Kodiak operates the largest contract compression fleet in the industry with approximately 4.3 million revenue-generating horsepower deployed across key basins. For the full year 2023, Kodiak reported total revenues of USD 850.4 million.

Kodiak's core business is providing contract compression services to oil and gas producers and midstream customers. The company's compression equipment is used in high-volume gas gathering systems, processing facilities, multi-well gas lift applications, and natural gas transmission systems. Kodiak's services include:

• Large horsepower compression units for infrastructure applications

• 24/7 technical and mechanical support

• Data analytics and integration capabilities

• Natural gas treating services

• Gas cooling equipment

In April 2024, Kodiak completed the acquisition of CSI Compressco LP, significantly expanding its fleet and service offerings. This acquisition solidified Kodiak's position as the industry leader in contract compression. Over 70% of Kodiak's horsepower is deployed in the Permian Basin, with additional presence in other key areas. The company maintains high utilization rates, ending 2023 at 99.9% fleet utilization.

Kodiak has seen steady growth in its core compression business, with compression operations segment revenues increasing 12.3% in 2023 compared to 2022. The company expects continued strong demand for large horsepower compression, particularly to support growing natural gas production and LNG export projects. For 2024, Kodiak is guiding to Adjusted EBITDA of USD 580 million to USD 610 million for the combined company post-acquisition. Kodiak aims to continue growing its fleet while also returning capital to shareholders through a quarterly dividend of USD 0.38 per share initiated in 2023.