Kodiak Gas Services (KGS) Investor presentation summary

Company overview and market position

• Operates a 4.4 million horsepower fleet, with a market cap of $3.1 billion and enterprise value of $5.7 billion as of November 2024.

• Holds a leading position in the Permian Basin with 2.9 million HP, representing 68% of revenue-generating horsepower.

• Achieved 99% utilization rate on units over 1,000 HP and grew from 0 to 4.4 million HP in 13 years.

• Provides critical energy infrastructure for natural gas and oil, supporting global demand growth.

Financial and operational performance

• Q3 2024 revenues reached $325 million, with adjusted gross margin at 66% and free cash flow of $53 million, more than doubling from Q2 2024.

• Quarterly adjusted EBITDA for Q3 2024 was $168 million, up from $154 million in Q2 2024.

• Increased fleet horsepower by 50,000 in Q3 2024 and improved fleet utilization to 96%.

• Redeployed 38,000 HP of idle units and added 50,000 new HP at market rates, driving margin expansion.

Industry trends and demand drivers

• LNG exports and AI data center buildouts are fueling multi-year natural gas demand growth.

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

• Data centers projected to drive 3-10 Bcf/d of incremental gas demand by 2030, with 60% of new electricity needs met by natural gas.

• Compression industry shows capital discipline, with spending below historical levels and high utilization rates (95%).