Kodiak Gas Services (KGS) Investor presentation summary

Financial performance and highlights

• Achieved record adjusted EBITDA of $184M in Q4 2025 and $715M for the full year, with a 69.2% contract services adjusted gross margin, and record free cash flow of $79M in Q4 2025.

• Declared a $0.49 per share dividend, a 20% year-over-year increase, and repurchased ~$34M of stock in Q4 2025.

• Maintained a ~98% fleet utilization rate and added ~150,000 horsepower in new units during 2025.

• Achieved year-end total leverage target of 3.5x and improved credit profile with a debt to EBITDA ratio of 3.5x at Q4 2025.

• 2026 guidance projects adjusted EBITDA of $750M–$780M and discretionary cash flow of $480M–$510M.

Market position and industry trends

• Holds a $4.7B market capitalization and $7.3B enterprise value as of February 2026, with a 3.6% dividend yield.

• Operates 4.5 million fleet horsepower with ~98% utilization and an average large horsepower unit age of ~7 years.

• Compression market leader in the Permian and large horsepower segments, with 69% of revenue-generating horsepower in the Permian.

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

• Industry-wide capital discipline has led to higher utilization (95% in Q4 2025) and increased pricing, with capital expenditures below historical levels.

Growth strategy and investment thesis

• Visible multi-year growth in U.S. natural gas and power demand, with compression intensity averaging ~600K HP per Bcf/d.

• Permian Basin accounts for >45% of domestic drilling activity and has seen ~10% CAGR in gross gas production since 2020.

• Distributed Power Solutions (DPS) acquisition adds a 384MW fleet, expanding into data center and microgrid markets.

• DPS acquisition expected to be accretive to DCF and EPS, closing early Q2 2026 at a $675M purchase price.

• Capital allocation targets leverage <4.0x, sustainable dividend growth, and opportunistic share repurchases.