Kodiak Gas Services (KGS) Investor presentation summary

Company overview and market position

• Operates a leading domestic energy infrastructure platform with a $3.6B market cap and $6.3B enterprise value as of December 2024.

• Maintains a purpose-built fleet of 4.4 million horsepower, with 2.9 million HP in the Permian, and a 99% utilization rate on large units.

• Generates 68% of revenue from the Permian, with additional presence in Eagle Ford, Mid-Continent, and other regions.

• Top three North American contract compression providers control ~75% of the outsourced market.

Financial and operational performance

• Q3 2024 revenues reached $325M, with a 66% contract services adjusted gross margin and $53M in free cash flow, up over 100% from Q2.

• Quarterly adjusted EBITDA for Q3 2024 was $168M, continuing a trend of margin expansion and cost rationalization.

• Redeployed 38K HP of idle units and added 50K new HP at market rates in Q3 2024.

• 2024 guidance includes $600–610M adjusted EBITDA and $365–385M discretionary cash flow.

Industry trends and demand drivers

• LNG export growth and AI/data center buildout are driving multi-year increases in natural gas demand.

• U.S. gas demand expected to rise by 28 Bcf/d by 2030, requiring ~2.4M HP/year in new compression capacity.

• Tight equipment market and industry-wide capital discipline have led to high utilization and rising costs per HP.

• Permian and Eagle Ford basins are key supply sources for Gulf Coast LNG projects.