Kodiak Gas Services, Inc. ( (KGS) ) has released its Q3 earnings. Here is a breakdown of the information Kodiak Gas Services, Inc. presented to its investors.
Kodiak Gas Services, Inc., headquartered in The Woodlands, Texas, is a prominent provider of contract compression services and critical energy infrastructure, primarily serving the oil and gas sector in the United States. In its third-quarter 2024 earnings report, Kodiak Gas Services reported significant achievements, including record-high quarterly adjusted EBITDA and free cash flow, alongside an increase in full-year 2024 guidance and a positive outlook for 2025. The company recorded a net loss of $6.2 million, attributed to a $9.9 million asset impairment, $10.4 million loss on asset sales, and a $20.3 million non-cash loss related to interest rate hedges. Despite these setbacks, Kodiak achieved a record quarterly adjusted EBITDA of $168.4 million and free cash flow of $52.5 million, reflecting robust operational performance and strategic fleet management. The company reported a substantial increase in contract services segment revenue, reaching $284.3 million, a 52% rise from the previous year, and a gross margin percentage of 66%. Kodiak also deployed 50,000 horsepower of new compression units while divesting 95,000 horsepower of smaller units, demonstrating strategic fleet optimization. Looking forward, Kodiak Gas Services raised its 2024 adjusted EBITDA guidance and provided an optimistic early outlook for 2025. The company anticipates continued demand for its large horsepower assets and expects to maintain high fleet utilization rates, positioning itself for further margin and cash flow improvements.
