Kodiak Gas Services (KGS) Investor presentation summary

Market position and growth

• Holds a leading position in domestic energy infrastructure with a $2.5B market cap and $5.0B enterprise value.

• Operates a purpose-built fleet of 4.5 million horsepower, with 2.8 million in the Permian Basin.

• Achieved 98% utilization rate on large horsepower units and rapid growth from 0 to 4.5 million HP in 13 years.

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

• Recent acquisition of CSI Compressco LP and raised synergy estimate to over $30M.

Financial and operational performance

• Q2 2024 revenues reached $310M, up 44% from Q1; contract services revenue was $276M.

• Adjusted EBITDA for Q2 2024 was $154M, with discretionary cash flow of $91M.

• Increased fleet horsepower by 41,500 during Q2 2024.

• Maintains a 6.0% dividend yield and has delivered over 85% total shareholder return since IPO.

• No near-term debt maturities, with first major maturity in 2028 and a target leverage ratio below 3.5x by end of 2025.

Industry trends and demand drivers

• LNG exports and AI-driven data center growth are fueling 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.

• Compression industry capital spending remains disciplined, with high utilization rates and rising costs per HP.

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

• Data centers projected to drive 15% annual growth in power demand through 2030, with 60% of incremental electricity from natural gas.