Kodiak Gas Services (KGS) Investor presentation summary

Business overview and market position

• Market capitalization of $3.1 billion and enterprise value of $5.7 billion as of August 2025, with a 5.0% dividend yield and 4.4 million fleet horsepower at ~97% utilization.

• Leading contract compression provider in the Permian and Eagle Ford, with 79% of fleet horsepower in large units and 70% of revenue-generating horsepower in the Permian.

• Top three U.S. contract compression providers control ~70% of the outsourced market, with Kodiak holding 4.4 million HP.

• Over 50% of revenue comes from top 10 customers, and over 60% from investment grade-rated customers.

Financial performance and guidance

• Record Q2 2025 adjusted EBITDA of $178.2 million and free cash flow of $70 million; quarterly dividend of $0.45 per share declared.

• Full-year 2025 guidance: adjusted EBITDA of $700–$725 million, discretionary cash flow of $445–$465 million, and contract services revenues of $1.16–$1.2 billion.

• Raised full-year discretionary cash flow guidance and announced a $100 million increase in share repurchase plan.

• Targeting upper single-digit annual adjusted EBITDA growth and 3–4% annual horsepower growth.

Industry trends and growth drivers

• U.S. LNG capacity expected to add ~3 Bcf/d in 2025 and ~13 Bcf/d through 2030, driving gas demand.

• Over 200% YoY increase in new natural gas-fired power plants in 2025 and ~15% CAGR in electric demand from new datacenters through 2030.

• Compression intensity remains high, with ~600K HP required per Bcf/d of gas demand; ~15 million incremental HP needed by 2030.

• Permian Basin accounts for >45% of domestic drilling activity and requires over 3x the compression of dry gas basins.