Kodiak Gas Services (KGS) Investor presentation summary

Financial performance and guidance

• Achieved $610M in adjusted EBITDA for 2024, with guidance for 2025 set at $685M–$725M.

• Discretionary cash flow reached $248M in 2024, with 2025 guidance of $425M–$450M.

• Contract services adjusted gross margin improved to 66.7% in Q4 2024.

• Fleet utilization increased to approximately 97% by year-end 2024.

• Divested low-margin assets and exited South America, focusing on core domestic operations.

Strategic initiatives and capital allocation

• Completed integration of CSI Compressco, streamlining operations and capturing synergies.

• Initiated a $50M share repurchase program and repurchased $40M of stock in 2024.

• Maintains a 4.5% dividend yield, with an 8% dividend increase in 2024.

• 2025 capital plan includes $315M–$365M in capex, focused on new units and methane mitigation.

• Targeting 3–4% annual growth in fleet horsepower and leverage ratio ≤3.5x by end of 2025.

Market position and industry trends

• Operates 4.4 million horsepower, with 78% on large horsepower units and 97% utilization.

• Market leader in the Permian Basin, with 69% of revenue-generating horsepower there.

• Top three U.S. contract compression providers control ~75% of the outsourced market.

• Industry capex remains below historical levels, while utilization and pricing have risen sharply.

• U.S. LNG and power demand are primary drivers of gas growth, supporting compression demand.