Kodiak Gas Services, Inc. ( (KGS) ) has released its Q4 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 the largest contract compression service provider in the United States, specializing in critical energy infrastructure and contract compression services for the natural gas and oil industry.
In its latest earnings report, Kodiak Gas Services announced a significant turnaround in financial performance for the fourth quarter and full year 2024, with net income attributable to common shareholders reaching $19.1 million for the quarter and $49.9 million for the year, compared to a net loss in the previous year’s fourth quarter. The company also provided optimistic guidance for 2025.
Key financial highlights include an adjusted EBITDA of $609.6 million for 2024, marking a substantial increase from $438.1 million in 2023. The company also reported a 40.6% increase in Contract Services segment revenues, reaching $1.0 billion. Strategic moves included divesting non-core assets, exiting operations in several countries, and deploying new compression units primarily in the Permian Basin, which contributed to a fleet utilization rate of 97%.
Looking ahead, Kodiak Gas Services expects its 2025 adjusted EBITDA to range between $685 million and $725 million, with growth capital expenditures projected between $240 million and $280 million. The company remains focused on maintaining high fleet utilization and meeting the growing demand for natural gas infrastructure, particularly in oil-driven basins.
With a strong financial performance in 2024 and a positive outlook for 2025, Kodiak Gas Services is well-positioned to capitalize on the increasing demand for natural gas compression services, driven by the anticipated growth in LNG export projects and natural gas-fired electricity demand.