Latest news with #MickeyMcKee
Business Wire
5 days ago
- Business
- Business Wire
Kodiak Gas Services Reports Second Quarter 2025 Financial Results, Announces $100 Million Increase to Share Repurchase Program and Provides Updated Full Year 2025 Guidance
THE WOODLANDS, Texas--(BUSINESS WIRE)--Kodiak Gas Services, Inc. (NYSE: KGS) ('Kodiak' or the 'Company'), a leading provider of critical energy infrastructure and contract compression services, today reported financial and operating results for the quarter ended June 30, 2025. The Company also announced that its Board of Directors has approved a $100 million increase to its share repurchase program, and increased full-year 2025 guidance for adjusted EBITDA and discretionary cash flow. Net income attributable to common shareholders for the quarter ended June 30, 2025 was $39.5 million, compared to $30.4 million and $6.2 million for the quarters ended March 31, 2025, and June 30, 2024, respectively. Second Quarter 2025 and Recent Highlights Record earnings per share attributable to common shareholders of $0.43 per diluted share Record quarterly adjusted EBITDA (1) of $178.2 million, a 15.5% increase compared to second quarter 2024 Contract Services adjusted gross margin percentage (1) increased to 68.3%, a 430 basis point increase compared to second quarter 2024 Generated record quarterly free cash flow (1) of $70.3 million Returned over $50 million to stockholders through dividends and share repurchases Deployed 31,800 horsepower of new, large horsepower compression units Fleet utilization increased to 97.2%, a 290 basis point increase compared to second quarter 2024 Added to the S&P SmallCap 600 index effective August 6, 2025 Revised 2025 Outlook Highlights Raised full-year 2025 adjusted EBITDA guidance to a range of $700 to $725 million, a $5 million increase to the low end of the range Increased full-year 2025 discretionary cash flow (1) guidance to a range of $445 to $465 million (1) Adjusted EBITDA, adjusted gross margin percentage, free cash flow and discretionary cash flow are non-GAAP financial measures. Definitions and reconciliations to the most comparable GAAP financial measure are included herein. Expand "Kodiak's performance in the second quarter reflects our commitment to operational excellence and the strong fundamentals for contract gas compression,' said Mickey McKee, Kodiak's President and Chief Executive Officer. 'Our fourth consecutive quarterly increase in Contract Services adjusted gross margin percentage and our record quarterly adjusted EBITDA are the product of our strategic focus on large horsepower compression, fleet optimization and significant investments in both technology and our people. This approach not only strengthens our market position but also ensures we continue to meet the evolving needs of our customers with reliability and efficiency. 'Despite the challenges posed by global economic instabilities and energy market dynamics, our production-focused business model remains robust. The resilience of our operations is evident in our ability to maintain high fleet utilization and increase margins. As we look ahead, the highly visible Permian Basin natural gas production growth combined with the strong demand outlook driven by power demand for data centers and domestic LNG projects, reinforce our confidence in the long-term growth prospects for contract compression. "The meaningful increase in our share repurchase program reflects that confidence and underscores Kodiak's commitment to returning capital to shareholders. Our focus remains on delivering superior service and maintaining one of the safest and most reliable compression fleets in the industry. Kodiak is well-positioned to capitalize on future opportunities, continue to drive profitable growth and increase shareholder value." Segment Information Contract Services segment revenue was $293.5 million in the second quarter of 2025, a 6.3% increase compared to $276.3 million in the second quarter of 2024. Contract Services segment gross margin was $134.3 million in the second quarter of 2025, a 24.9% increase compared to $107.5 million in the second quarter of 2024 and adjusted gross margin was $200.4 million in the second quarter of 2025, a 13.3% increase compared to $176.9 million in the second quarter of 2024. Other Services segment revenue was $29.3 million in the second quarter of 2025, a 12.3% decrease compared to $33.4 million in the second quarter of 2024. Other Services segment gross margin and adjusted gross margin were each $7.2 million in the second quarter of 2025, a 31.6% increase compared to $5.5 million in the second quarter of 2024. Long-Term Debt and Liquidity During the second quarter 2025, the Company reduced debt outstanding by approximately $48 million. Total debt outstanding was $2.6 billion as of June 30, 2025, comprised primarily of borrowings on the ABL Facility and senior notes due 2029. At June 30, 2025, the Company had $366.4 million available on its ABL Facility, and Kodiak's credit agreement leverage ratio was 3.6x. S&P SmallCap 600 S&P Dow Jones Indices announced on August 1, 2025 that Kodiak would join the S&P SmallCap 600 index effective prior to the opening of trading on Wednesday, August 6, 2025. The Company's addition represents a significant milestone and affirms its financial strength and commitment to profitable growth. For more information about S&P Dow Jones Indices, please visit Share Repurchase Program The Company's Board of Directors approved a $100 million increase to the Company's share repurchase program and extended the program's expiration date to December 31, 2026. Including the increased repurchase authorization announced today, the Company has $115.0 million available for repurchases under its share repurchase program. Repurchases under the share repurchase program may be made from time to time through open market repurchases or through privately negotiated transactions subject to market conditions, applicable legal requirements, and other relevant factors. To date, the Company has repurchased approximately 2.0 million shares for an aggregate amount of $60.0 million (at a weighted average price of $30.24). (1) Adjusted EBITDA, adjusted EBITDA percentage, adjusted gross margin, adjusted gross margin percentage, discretionary cash flow and free cash flow are non-GAAP financial measures. For definitions and reconciliations to the most directly comparable financial measures calculated and presented in accordance with GAAP, see 'Non-GAAP Financial Measures' below. (2) Growth capital expenditures made to (1) expand the operating capacity or operating income capacity of assets including, but not limited to, the acquisition of additional compression units, upgrades to existing equipment, expansion of supporting infrastructure, and implementation of new technologies, (2) maintain the operating capacity or operating income capacity of assets by acquisition of replacement compression units and their supporting infrastructure, and (3) expand the operating capacity or operating income capacity of existing assets. (3) Other capital expenditures made on assets required to support our operations—such as rolling stock, leasehold improvements, technology hardware and software and related implementation expenditures, safety enhancements to equipment, and other general items that are typically capitalized and that have a useful life beyond one year. Other capital expenditures were previously included in growth capital expenditures, but are now shown separately for both current and historical periods. Expand (1) Fleet horsepower includes (x) revenue-generating horsepower and (y) idle horsepower, which is comprised of compression units that do not have a signed contract or are not subject to a firm commitment from our customer and therefore are not currently generating revenue. (2) Revenue-generating horsepower includes compression units that are operating under contract and generating revenue and compression units which are available to be deployed and for which we have a signed contract or are subject to a firm commitment from our customer. (3) Calculated as (i) revenue-generating horsepower divided by (ii) revenue-generating compression units at period end. (4) Fleet utilization is calculated as (i) revenue-generating horsepower divided by (ii) fleet horsepower. Expand (1) The Company is unable to reconcile projected adjusted EBITDA to projected net income (loss) and discretionary cash flow to projected net cash provided by operating activities and projected adjusted gross margin percentage to projected gross margin percentage, the most comparable financial measures calculated in accordance with GAAP, respectively, without unreasonable efforts because components of the calculations are inherently unpredictable, such as changes to current assets and liabilities, unknown future events, and estimating certain future GAAP measures. The inability to project certain components of the calculation would significantly affect the accuracy of the reconciliations. (2) Discretionary cash flow guidance assumes no change to Secured Overnight Financing Rate futures. Expand Conference Call Kodiak will conduct a conference call on Thursday, August 7, 2025, at 10:00 a.m. Eastern Time (9:00 a.m. Central Time) to discuss financial and operating results for the quarter ended June 30, 2025. To listen to the call by phone, dial 877-407-4012 and ask for the Kodiak Gas Services call at least 10 minutes prior to the start time. To listen to the call via webcast, please visit the Investors tab of Kodiak's website at About Kodiak Kodiak is a leading contract compression services provider in the United States, serving as a critical link in the infrastructure that enables the safe and reliable production and transportation of natural gas and oil. Headquartered in The Woodlands, Texas, Kodiak provides contract compression and related services to oil and gas producers and midstream customers in high–volume gas gathering systems, processing facilities, multi-well gas lift applications and natural gas transmission systems. More information is available at Non-GAAP Financial Measures Adjusted EBITDA is defined as net income (loss) before interest expense; income tax expense; and depreciation and amortization; plus (i) loss on extinguishment of debt; (ii) loss (gain) on derivatives; (iii) equity compensation expense; (iv) severance expenses; (v) transaction expenses; (vi) loss (gain) on sale of assets; and (vii) impairment of compression equipment. Adjusted EBITDA percentage is defined as adjusted EBITDA divided by total revenues. Adjusted EBITDA and adjusted EBITDA percentage are used as supplemental financial measures by our management and external users of our financial statements, such as investors, commercial banks and other financial institutions, to assess: (i) the financial performance of our assets without regard to the impact of financing methods, capital structure or historical cost basis of our assets; (ii) the viability of capital expenditure projects and the overall rates of return on alternative investment opportunities; (iii) the ability of our assets to generate cash sufficient to make debt payments and pay dividends; and (iv) our operating performance as compared to those of other companies in our industry without regard to the impact of financing methods and capital structure. We believe adjusted EBITDA and adjusted EBITDA percentage provide useful information because, when viewed with our GAAP results and the accompanying reconciliation, they provide a more complete understanding of our performance than GAAP results alone. We also believe that external users of our financial statements benefit from having access to the same financial measures that management uses in evaluating the results of our business. Reconciliations of adjusted EBITDA to net income (loss), the most directly comparable GAAP financial measure, and net cash provided by operating activities are presented below. Adjusted gross margin is defined as revenue less cost of operations, exclusive of depreciation and amortization expense. Adjusted gross margin percentage is defined as adjusted gross margin divided by total revenues. We believe adjusted gross margin and adjusted gross margin percentage are useful as supplemental measures to investors of our operating profitability. Reconciliations of adjusted gross margin to gross margin are presented below. Discretionary cash flow is defined as net cash provided by operating activities less (i) maintenance capital expenditures; (ii) certain changes in operating assets and liabilities; and (iii) certain other expenses; plus (w) cash loss on extinguishment of debt; (x) severance expenses; and (y) transaction expenses. We believe discretionary cash flow is a useful liquidity and performance measure and supplemental financial measure for us in assessing our ability to pay cash dividends to our stockholders, make growth capital expenditures and assess our operating performance. A reconciliation of discretionary cash flow to net cash provided by operating activities is presented below. Free cash flow is defined as net cash provided by operating activities less (i) maintenance capital expenditures; (ii) certain changes in operating assets and liabilities; (iii) certain other expenses; and (iv) growth and other capital expenditures; plus (w) cash loss on extinguishment of debt; (x) severance expenses; (y) transaction expenses; and (z) proceeds from sale of assets. We believe free cash flow is a liquidity measure and useful supplemental financial measure for us in assessing our ability to pursue business opportunities and investments to grow our business and to service our debt. A reconciliation of free cash flow to net cash provided by operating activities is presented below. Cautionary Note Regarding Forward-Looking Statements This news release contains, and our officers and representatives may from time to time make, 'forward-looking statements' within the meaning of the safe harbor provisions of the U.S. Private Securities Litigation Reform Act of 1995. Forward-looking statements are neither historical facts nor assurances of future performance. Instead, they are based only on our current beliefs, expectations and assumptions regarding the future of our business, future plans and strategies, projections, anticipated events and trends, the economy and other future conditions. Forward-looking statements can be identified by words such as: 'anticipate,' 'intend,' 'plan,' 'goal,' 'seek,' 'believe,' 'project,' 'estimate,' 'expect,' 'strategy,' 'future,' 'likely,' 'may,' 'should,' 'will' and similar references to future periods. Examples of forward-looking statements include, among others, statements we make regarding: (i) expected operating results, such as revenue growth and earnings, including upon the continued integration of CSI Compressco LP ('CSI Compressco') into our operations, and our ability to service our indebtedness; (ii) anticipated levels of capital expenditures and uses of capital; (iii) current or future volatility in the credit markets and future market conditions; (iv) potential or pending acquisition transactions or other strategic transactions, the timing thereof, the receipt of necessary approvals to close such acquisitions, our ability to finance such acquisitions, and our ability to achieve the intended operational, financial, and strategic benefits from any such transactions; (v) expectations of the effect on our financial condition of claims, litigation, environmental costs, contingent liabilities and governmental and regulatory investigations and proceedings; (vi) production and capacity forecasts for the natural gas and oil industry; (vii) strategy for customer retention, growth, fleet maintenance, market position and financial results; (viii) our interest rate hedges; and (ix) strategy for risk management. Because forward-looking statements relate to the future, they are subject to inherent uncertainties, risks and changes in circumstances that are difficult to predict and many of which are outside of our control. Our actual results and financial condition may differ materially from those indicated in the forward-looking statements. Therefore, you should not place undue reliance on any of these forward-looking statements. Important factors that could cause our actual results and financial condition to differ materially from those indicated in the forward-looking statements include, among others, the following: (i) a reduction in the demand for natural gas and oil and/or a decrease in natural gas and oil prices; (ii) the loss of, or the deterioration of the financial condition of, any of our key customers; (iii) nonpayment and nonperformance by our customers, suppliers or vendors; (iv) competitive pressures that may cause us to lose market share; (v) the structure of our Contract Services contracts and the failure of our customers to continue to contract for services after expiration of the primary term; (vi) our ability to successfully integrate any acquired businesses, including CSI Compressco, and realize the expected benefits thereof in the expected timeframe or at all; (vii) our ability to fund purchases of additional compression equipment; (viii) our ability to successfully implement our share repurchase program; (ix) a deterioration in general economic, business, geopolitical or industry conditions, including as a result of the conflict between Russia and Ukraine, the Israel-Hamas war, and the hostilities in the Middle East, inflation, and slow economic growth in the United States; (x) a downturn in the economic environment, as well as continued inflationary pressures; (xi) international operations and related mobilization and demobilization of compression units, operational interruptions, delays, upgrades, refurbishment and repair of compression assets and any related delays and costs overruns or reduced payment of contracted rates; (xii) our ability to successfully manage our international operations and comply with any applicable laws and regulations, including risks associated with doing business in foreign countries, and our ability to comply with the U.S. Foreign Corrupt Practices Act ('FCPA') or other anti-corruption laws; (xiii) the outcome of any pending internal review or any future related government enforcement actions; (xiv) tax legislation and the impact of changes to applicable tax laws, including the passage of the One Big Beautiful Bill Act, and administrative initiatives or challenges to our tax positions; (xv) the loss of key management, operational personnel or qualified technical personnel; (xvi) our dependence on a limited number of suppliers; (xvii) the cost of compliance with existing and new governmental regulations, as well as the associated uncertainty given the new U.S. federal government administration; (xviii) changes in trade policies and regulations, including increases or changes in duties, current and potentially new tariffs and other actions; (xix) the cost of compliance with regulatory initiatives and stakeholders' pressures, including sustainability and corporate responsibility; (xx) the inherent risks associated with our operations, such as equipment defects and malfunctions; (xxi) our reliance on third-party components for use in our IT systems; (xxii) legal and reputational risks and expenses relating to the privacy, use and security of employee and client information; (xxiii) threats of cyber-attacks or terrorism; (xxiv) agreements that govern our debt contain features that may limit our ability to operate our business and fund future growth and also increase our exposure to risk during adverse economic conditions; (xxv) volatile and/or elevated interest rates and associated central bank policy actions; (xxvi) our ability to access the capital and credit markets or borrow on affordable terms (or at all) to obtain additional capital that we may require; (xxvii) major natural disasters, severe weather events or other similar events that could disrupt operations; (xxviii) unionization of our labor force, labor interruptions and new or amended labor regulations; (xxix) renewal of insurance; (xxx) the effectiveness of our disclosure controls and procedures; and (xxxi) such other factors as discussed throughout the 'Risk Factors' and 'Management's Discussion and Analysis of Financial Condition and Results of Operations' sections and elsewhere in our Annual Report on Form 10-K for the year ended December 31, 2024, filed with the U.S. Securities and Exchange Commission.('SEC') on March 7, 2025, as may be updated by subsequent filings under the Securities Exchange Act of 1934, as amended, including Forms 10-Q and 8-K, each of which can be obtained free of charge on the SEC's website at Any forward-looking statement made by us in this news release is based only on information currently available to us and speaks only as of the date on which it is made. Except as may be required by applicable law, we undertake no obligation to publicly update any forward-looking statement whether as a result of new information, future developments or otherwise. KODIAK GAS SERVICES, INC. CONDENSED CONSOLIDATED BALANCE SHEETS (UNAUDITED) (in thousands) June 30, 2025 December 31, 2024 Assets Current assets: Cash and cash equivalents $ 5,428 $ 4,750 Accounts receivable, net 224,656 253,637 Inventories, net 101,004 103,341 Fair value of derivative instruments — 3,672 Contract assets 5,274 7,575 Prepaid expenses and other current assets 9,163 10,686 Total current assets 345,525 383,661 Property, plant and equipment, net 3,392,339 3,395,022 Operating lease right-of-use assets, net 47,866 53,754 Finance lease right-of-use assets, net 7,574 5,696 Goodwill 415,213 415,213 Identifiable intangible assets, net 158,999 162,747 Fair value of derivative instruments 6,978 17,544 Other assets 1,433 1,486 Total assets $ 4,375,927 $ 4,435,123 Liabilities and Stockholders' Equity Current liabilities: Accounts payable $ 50,385 $ 57,562 Accrued liabilities 178,541 188,732 Contract liabilities 84,392 73,075 Total current liabilities 313,318 319,369 Long-term debt, net of unamortized debt issuance cost 2,545,019 2,581,909 Operating lease liabilities 43,735 49,748 Finance lease liabilities 5,394 3,514 Deferred tax liabilities 118,087 103,826 Other liabilities 1,908 3,150 Total liabilities $ 3,027,461 $ 3,061,516 Stockholders' equity: Preferred stock 8 9 Common stock 895 892 Additional paid-in capital 1,317,475 1,305,375 Treasury stock, at cost (59,956 ) (40,000 ) Noncontrolling interest 12,347 13,694 Accumulated other comprehensive loss (8,316 ) — Retained earnings 86,013 93,637 Total stockholders' equity 1,348,466 1,373,607 Total liabilities and stockholders' equity $ 4,375,927 $ 4,435,123 Expand KODIAK GAS SERVICES, INC. (UNAUDITED) Six Months Ended June 30, (in thousands) 2025 2024 Cash flows from operating activities: Net income $ 71,020 $ 36,945 Adjustments to reconcile net income to net cash provided by operating activities: Depreciation and amortization 136,664 116,407 Equity compensation expense 13,269 8,159 Amortization of debt issuance costs 6,267 4,946 Non-cash lease expense 6,265 1,648 Provision for credit losses 995 4,589 Inventory reserve 123 476 Loss (gain) on sale of assets 15,817 (1,173 ) Change in fair value of derivatives — (14,293 ) Amortization of interest rate swap 4,147 — Deferred tax provision 17,134 7,104 Changes in operating assets and liabilities, exclusive of effects of business acquisition: Accounts receivable 27,986 (45,933 ) Inventories 2,214 (3,147 ) Contract assets 2,301 12,000 Prepaid expenses and other current assets 1,380 4,671 Accounts payable (13,162 ) 21,983 Accrued and other liabilities (13,334 ) 11,871 Contract liabilities 11,317 6,308 Other assets 1,097 63 Net cash provided by operating activities 291,500 172,624 Cash flows from investing activities: Net cash acquired in acquisition of CSI Compressco LP — 9,458 Purchase of property, plant and equipment (160,171 ) (177,186 ) Proceeds from sale of assets 17,606 411 Other — (35 ) Net cash used for investing activities (142,565 ) (167,352 ) Cash flows from financing activities: Borrowings on debt instruments 686,921 1,945,775 Payments on debt instruments (730,078 ) (1,867,851 ) Principal payments on other borrowings (3,455 ) (1,843 ) Payment of debt issuance cost — (16,346 ) Principal payments on finance leases (1,540 ) (408 ) Offering costs — (1,162 ) Dividends paid to stockholders (76,593 ) (62,393 ) Repurchase of common shares (19,956 ) — Cash paid for shares withheld to cover taxes (3,286 ) (294 ) Net effect on deferred taxes and taxes payable related to the vesting of restricted stock 424 — Distributions to noncontrolling interest (694 ) (2,460 ) Net cash used for financing activities (148,257 ) (6,982 ) Net increase (decrease) in cash and cash equivalents 678 (1,710 ) Cash and cash equivalents - beginning of period 4,750 5,562 Cash and cash equivalents - end of period $ 5,428 $ 3,852 Expand Three Months Ended (in thousands, excluding percentages) June 30, 2025 March 31, 2025 June 30, 2024 Net income $ 39,984 $ 31,036 $ 6,713 Interest expense 45,755 47,224 52,133 Income tax expense 13,445 10,524 2,336 Depreciation and amortization 66,135 70,529 69,463 Gain on derivatives — — (6,797 ) Equity compensation expense 6,291 6,978 5,311 Severance expense (1) — 376 8,969 Transaction expenses (2) — 1,786 17,387 Loss (gain) on sale of assets 6,606 9,211 (1,173 ) Adjusted EBITDA $ 178,216 $ 177,664 $ 154,342 Net income percentage 12.4 % 9.4 % 2.2 % Adjusted EBITDA percentage 55.2 % 53.9 % 49.8 % Expand (1) Represents severance expense related to the CSI Acquisition. (2) Represents certain costs associated with non-recurring professional services and other costs, primarily related to the CSI Acquisition and secondary offerings. Expand Contract Services Three Months Ended (in thousands, excluding percentages) June 30, 2025 March 31, 2025 June 30, 2024 Total revenues $ 293,534 $ 288,956 $ 276,250 Cost of operations (excluding depreciation and amortization) (93,137 ) (93,235 ) (99,333 ) Depreciation and amortization (66,135 ) (70,529 ) (69,463 ) Gross margin $ 134,262 $ 125,192 $ 107,454 Gross margin percentage 45.7 % 43.3 % 38.9 % Depreciation and amortization 66,135 70,529 69,463 Adjusted gross margin $ 200,397 $ 195,721 $ 176,917 Adjusted gross margin percentage 68.3 % 67.7 % 64.0 % Expand Other Services Three Months Ended (in thousands, excluding percentages) June 30, 2025 March 31, 2025 June 30, 2024 Total revenues $ 29,309 $ 40,686 $ 33,403 Cost of operations (excluding depreciation and amortization) (22,114 ) (35,226 ) (27,936 ) Depreciation and amortization — — — Gross margin $ 7,195 $ 5,460 $ 5,467 Gross margin percentage 24.5 % 13.4 % 16.4 % Depreciation and amortization — — — Adjusted gross margin $ 7,195 $ 5,460 $ 5,467 Adjusted gross margin percentage 24.5 % 13.4 % 16.4 % Expand KODIAK GAS SERVICES, INC. (UNAUDITED) Three Months Ended (in thousands) June 30, 2025 March 31, 2025 June 30, 2024 Net cash provided by operating activities $ 177,172 $ 114,328 $ 121,082 Maintenance capital expenditures (17,565 ) (16,407 ) (19,147 ) Severance expense (1) — 376 8,969 Transaction expenses (2) — 1,786 17,387 Change in operating assets and liabilities (38,478 ) 18,679 (32,372 ) Other (3) (4,705 ) (2,678 ) (5,302 ) Discretionary cash flow $ 116,424 $ 116,084 $ 90,617 Growth capital expenditures (4)(5) (37,966 ) (55,983 ) (77,257 ) Other capital expenditures (4) (16,398 ) (22,258 ) (13,133 ) Proceeds from sale of assets 8,230 9,376 411 Free cash flow $ 70,290 $ 47,219 $ 638 Expand (1) Represents severance expense related to the CSI Acquisition. (2) Represents certain costs associated with non-recurring professional services and other costs, primarily related to the CSI Acquisition and secondary offerings. (3) Includes non-cash lease expense, provision for credit losses and inventory reserve. (4) For the three months ended June 30, 2025, March 31, 2025, and June 30, 2024, growth and other capital expenditures includes a $10.7 million decrease, a $14.1 million increase and a $12.6 million decrease in accrued capital expenditures, respectively. (5) For the three months ended June 30, 2025, March 31, 2025, and June 30, 2024, growth capital expenditures includes a $0.3 million decrease, a $1.2 million increase and a $19.8 million increase, in a non-cash sales tax accrual on compression equipment purchases, respectively. These accrual amounts are estimated based on the best-known information as it relates to open audit periods with the State of Texas. Expand
Yahoo
7 days ago
- Business
- Yahoo
Kodiak Gas Services Appoints Steven L. Green as Chief Commercial Officer to Drive Strategic Growth and Enhance Commercial Execution
THE WOODLANDS, Texas, August 04, 2025--(BUSINESS WIRE)--Kodiak Gas Services, Inc. (NYSE: KGS), ("Kodiak" or the "Company") today announced the appointment of Steven L. Green as Executive Vice President and Chief Commercial Officer (CCO), effective immediately. Mr. Green brings more than two decades of commercial, operational, and strategic leadership across the energy and midstream sectors. His appointment underscores Kodiak's commitment to accelerating growth, optimizing its commercial platform, and delivering long-term value for shareholders. As CCO, Mr. Green will oversee Kodiak's enterprise-wide commercial strategy, including customer engagement, contract structuring, and business development initiatives. He will also play a key role in shaping the company's long-term strategic planning and execution roadmap. "Steven's deep industry experience and proven track record in scaling and monetizing midstream infrastructure platforms make him a valuable addition to our leadership team," said Mickey McKee, President and Chief Executive Officer of Kodiak Gas Services. "As we continue to execute our growth strategy, Steven's leadership will be instrumental in expanding our commercial capabilities and enhancing our value proposition to customers." Mr. Green most recently served as Chief Executive Officer of Piñon Midstream, where he founded and led the development of a premier sour natural gas treating system in the Delaware Basin. Under his leadership, Piñon executed a differentiated commercial model, secured anchor commitments from investment-grade producers, and successfully monetized the platform in a $950 million transaction with Enterprise Products Partners. Earlier in his career, Mr. Green held key commercial and leadership roles at Caiman Energy / Blue Racer Midstream, where he managed over 700 miles of pipeline and 1.3 Bcf/d of processing capacity while overseeing nearly $2.5 billion in capital deployment. He also has significant technical and operational expertise from his time with Regency Energy Partners and Plains Gas Solutions. "I am excited to join Kodiak at a time of tremendous opportunity," said Mr. Green. "The company has a strong market position, a performance-driven culture, and a clear strategy for disciplined growth. I look forward to working closely with the team to deepen customer relationships and deliver consistent returns for our shareholders." About Kodiak Kodiak is a leading contract compression services provider in the United States, serving as a critical link in the infrastructure that enables the safe and reliable production and transportation of natural gas and oil. Headquartered in The Woodlands, Texas, Kodiak provides contract compression and related services to oil and gas producers and midstream customers in high–volume gas gathering systems, processing facilities, multi-well gas lift applications and natural gas transmission systems. View source version on Contacts Kodiak Gas Services, Sones, VP – Investor Relationsir@ (936) 755-3259 Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Business Wire
07-05-2025
- Business
- Business Wire
Kodiak Gas Services Announces First Quarter 2025 Financial Results, Provides Updated Full Year 2025 Guidance
THE WOODLANDS, Texas--(BUSINESS WIRE)--Kodiak Gas Services, Inc. (NYSE: KGS) ('Kodiak' or the 'Company'), a leading provider of critical energy infrastructure and contract compression services, today reported financial and operating results for the quarter ended March 31, 2025 and updated full-year 2025 guidance. Net income attributable to common shareholders for the quarter ended March 31, 2025 was $30.4 million, compared to $19.1 million and $30.2 million for the quarters ended December 31, 2024 and March 31, 2024, respectively. First Quarter 2025 and Recent Highlights Record quarterly adjusted EBITDA (1) of $177.7 million Contract Services adjusted gross margin percentage (1) increased sequentially to 67.7% Deployed 48,900 horsepower of new, large horsepower compression units Fleet utilization increased sequentially to 96.9% Repurchased approximately $10 million of common stock at an average price of $36.87 Increased quarterly dividend by 10% to $0.45 per share, or $1.80 per share annualized Revised 2025 Outlook Highlights Raised full-year 2025 adjusted EBITDA guidance to a range of $695 to $725 million, a $10 million increase to the low end of the range "Kodiak had another outstanding quarter, with strong recontracting results and increased operational efficiency driving new quarterly records in total revenues, adjusted EBITDA and discretionary cash flow," said Mickey McKee, Kodiak's President and Chief Executive Officer. 'We continued to high grade our compression fleet, adding new, large horsepower units and divesting underutilized non-core horsepower assets. Execution of this strategy drove a third consecutive quarterly increase in fleet utilization and Contract Services adjusted gross margin percentage. "Despite recent volatility in energy prices, the long-term growth outlook for U.S. natural gas supply and associated need for large horsepower compression infrastructure is unchanged, and Kodiak is committed to delivering the high level of service our customers expect with one of the safest and most sustainable contract compression fleets in the industry. "The production focus of our compression services—supported by fixed-revenue contracts with premier customers operating in the most economic basins—drives the strength and resilience of our business model. Given the sustainability of our cash flow and the positive outlook for the remainder of the year, we increased our full year 2025 guidance and enhanced our return of capital to shareholders through share repurchases and the recently announced increase to our quarterly dividend, while continuing to drive to our leverage target." (1) Adjusted EBITDA and adjusted gross margin percentage are non-GAAP financial measures. Definitions and reconciliations to the most comparable GAAP financial measure are included herein. Expand Segment Information Contract Services segment revenue was $289.0 million in the first quarter of 2025, a 3.1% increase sequentially. Contract Services segment gross margin was $125.2 million and adjusted gross margin was $195.7 million in the first quarter of 2025, the latter representing a 4.6% increase sequentially. Other Services segment revenue was $40.7 million in the first quarter of 2025, a 38.8% increase sequentially. Other Services segment gross margin and adjusted gross margin were each $5.5 million in the first quarter of 2025, compared to $4.2 million in the previous quarter. Long-Term Debt and Liquidity Total debt outstanding was $2.6 billion as of March 31, 2025, comprised primarily of borrowings on the ABL Facility and senior notes due 2029. At March 31, 2025, the Company had $319.3 million available on its ABL Facility, and Kodiak's credit agreement leverage ratio was 3.7x. (1) Adjusted EBITDA, adjusted EBITDA percentage, adjusted gross margin, adjusted gross margin percentage, discretionary cash flow and free cash flow are non-GAAP financial measures. For definitions and reconciliations to the most directly comparable financial measures calculated and presented in accordance with GAAP, see 'Non-GAAP Financial Measures' below. (2) Growth capital expenditures made to (1) expand the operating capacity or operating income capacity of assets including, but not limited to, the acquisition of additional compression units, upgrades to existing equipment, expansion of supporting infrastructure, and implementation of new technologies, (2) maintain the operating capacity or operating income capacity of assets by acquisition of replacement compression units and their supporting infrastructure, and (3) expand the operating capacity or operating income capacity of existing assets. (3) Other capital expenditures made on assets required to support our operations—such as rolling stock, leasehold improvements, technology hardware and software and related implementation expenditures, safety enhancements to equipment, and other general items that are typically capitalized and that have a useful life beyond one year. Other capital expenditures were previously included in growth capital expenditures, but are now shown separately for both current and historical periods. Expand Summary Operating Data (as of the dates indicated) March 31, 2025 December 31, 2024 March 31, 2024 Fleet horsepower (1) 4,422,914 4,402,747 3,290,971 Revenue-generating horsepower (2) 4,284,103 4,250,499 3,285,592 Fleet compression units 4,941 5,069 3,091 Revenue-generating compression units 4,545 4,592 3,064 Revenue-generating horsepower per revenue-generating compression unit (3) 943 926 1,072 Fleet utilization (4) 96.9 % 96.5 % 99.8 % Expand (1) Fleet horsepower includes (x) revenue-generating horsepower and (y) idle horsepower, which is comprised of compression units that do not have a signed contract or are not subject to a firm commitment from our customer and therefore are not currently generating revenue. (2) Revenue-generating horsepower includes compression units that are operating under contract and generating revenue and compression units which are available to be deployed and for which we have a signed contract or are subject to a firm commitment from our customer. (3) (4) Fleet utilization is calculated as (i) revenue-generating horsepower divided by (ii) fleet horsepower. Expand (1) The Company is unable to reconcile projected adjusted EBITDA to projected net income (loss) and discretionary cash flow to projected net cash provided by operating activities and projected adjusted gross margin percentage to projected gross margin percentage, the most comparable financial measures calculated in accordance with GAAP, respectively, without unreasonable efforts because components of the calculations are inherently unpredictable, such as changes to current assets and liabilities, unknown future events, and estimating certain future GAAP measures. The inability to project certain components of the calculation would significantly affect the accuracy of the reconciliations. (2) Discretionary cash flow guidance assumes no change to Secured Overnight Financing Rate futures. Expand Conference Call Kodiak will conduct a conference call on Thursday, May 8, 2025, at 11:00 a.m. Eastern Time (10:00 a.m. Central Time) to discuss financial and operating results for the quarter ended March 31, 2025. To listen to the call by phone, dial 877-407-4012 and ask for the Kodiak Gas Services call at least 10 minutes prior to the start time. To listen to the call via webcast, please visit the Investors tab of Kodiak's website at About Kodiak Kodiak is a leading contract compression services provider in the United States, serving as a critical link in the infrastructure that enables the safe and reliable production and transportation of natural gas and oil. Headquartered in The Woodlands, Texas, Kodiak provides contract compression and related services to oil and gas producers and midstream customers in high–volume gas gathering systems, processing facilities, multi-well gas lift applications and natural gas transmission systems. More information is available at Non-GAAP Financial Measures Adjusted EBITDA is defined as net income (loss) before interest expense; income tax expense; and depreciation and amortization; plus (i) loss on extinguishment of debt; (ii) loss (gain) on derivatives; (iii) equity compensation expense; (iv) severance expenses; (v) transaction expenses; (vi) loss (gain) on sale of assets; and (vii) impairment of compression equipment. Adjusted EBITDA percentage is defined as adjusted EBITDA divided by total revenues. Adjusted EBITDA and adjusted EBITDA percentage are used as supplemental financial measures by our management and external users of our financial statements, such as investors, commercial banks and other financial institutions, to assess: (i) the financial performance of our assets without regard to the impact of financing methods, capital structure or historical cost basis of our assets; (ii) the viability of capital expenditure projects and the overall rates of return on alternative investment opportunities; (iii) the ability of our assets to generate cash sufficient to make debt payments and pay dividends; and (iv) our operating performance as compared to those of other companies in our industry without regard to the impact of financing methods and capital structure. We believe adjusted EBITDA and adjusted EBITDA percentage provide useful information because, when viewed with our GAAP results and the accompanying reconciliation, they provide a more complete understanding of our performance than GAAP results alone. We also believe that external users of our financial statements benefit from having access to the same financial measures that management uses in evaluating the results of our business. Reconciliations of adjusted EBITDA to net income (loss), the most directly comparable GAAP financial measure, and net cash provided by operating activities are presented below. Adjusted gross margin is defined as revenue less cost of operations, exclusive of depreciation and amortization expense. Adjusted gross margin percentage is defined as adjusted gross margin divided by total revenues. We believe adjusted gross margin and adjusted gross margin percentage are useful as supplemental measures to investors of our operating profitability. Reconciliations of adjusted gross margin to gross margin are presented below. Discretionary cash flow is defined as net cash provided by operating activities less (i) maintenance capital expenditures; (ii) certain changes in operating assets and liabilities; and (iii) certain other expenses; plus (w) cash loss on extinguishment of debt; (x) severance expenses; and (y) transaction expenses. We believe discretionary cash flow is a useful liquidity and performance measure and supplemental financial measure for us in assessing our ability to pay cash dividends to our stockholders, make growth capital expenditures and assess our operating performance. A reconciliation of discretionary cash flow to net cash provided by operating activities is presented below. Free cash flow is defined as net cash provided by operating activities less (i) maintenance capital expenditures; (ii) certain changes in operating assets and liabilities; (iii) certain other expenses; and (iv) growth and other capital expenditures; plus (w) cash loss on extinguishment of debt; (x) severance expenses; (y) transaction expenses; and (z) proceeds from sale of assets. We believe free cash flow is a liquidity measure and useful supplemental financial measure for us in assessing our ability to pursue business opportunities and investments to grow our business and to service our debt. A reconciliation of free cash flow to net cash provided by operating activities is presented below. Cautionary Note Regarding Forward-Looking Statements This news release contains, and our officers and representatives may from time to time make, 'forward-looking statements' within the meaning of the safe harbor provisions of the U.S. Private Securities Litigation Reform Act of 1995. Forward-looking statements are neither historical facts nor assurances of future performance. Instead, they are based only on our current beliefs, expectations and assumptions regarding the future of our business, future plans and strategies, projections, anticipated events and trends, the economy and other future conditions. Forward-looking statements can be identified by words such as: 'anticipate,' 'intend,' 'plan,' 'goal,' 'seek,' 'believe,' 'project,' 'estimate,' 'expect,' 'strategy,' 'future,' 'likely,' 'may,' 'should,' 'will' and similar references to future periods. Examples of forward-looking statements include, among others, statements we make regarding: (i) expected operating results, such as revenue growth and earnings, including upon the continued integration of CSI Compressco LP into our operations, and our ability to service our indebtedness; (ii) anticipated levels of capital expenditures and uses of capital; (iii) current or future volatility in the credit markets and future market conditions; (iv) potential or pending acquisition transactions or other strategic transactions, the timing thereof, the receipt of necessary approvals to close such acquisitions, our ability to finance such acquisitions, and our ability to achieve the intended operational, financial, and strategic benefits from any such transactions; (v) expectations of the effect on our financial condition of claims, litigation, environmental costs, contingent liabilities and governmental and regulatory investigations and proceedings; (vi) production and capacity forecasts for the natural gas and oil industry; (vii) strategy for customer retention, growth, fleet maintenance, market position and financial results; (viii) our interest rate hedges; and (ix) strategy for risk management. Because forward-looking statements relate to the future, they are subject to inherent uncertainties, risks and changes in circumstances that are difficult to predict and many of which are outside of our control. Our actual results and financial condition may differ materially from those indicated in the forward-looking statements. Therefore, you should not place undue reliance on any of these forward-looking statements. Important factors that could cause our actual results and financial condition to differ materially from those indicated in the forward-looking statements include, among others, the following: (i) a reduction in the demand for natural gas and oil and/or a decrease in natural gas and oil prices; (ii) the loss of, or the deterioration of the financial condition of, any of our key customers; (iii) nonpayment and nonperformance by our customers, suppliers or vendors; (iv) competitive pressures that may cause us to lose market share; (v) the structure of our Contract Services contracts and the failure of our customers to continue to contract for services after expiration of the primary term; (vi) our ability to successfully integrate any acquired businesses, including CSI Compressco, and realize the expected benefits thereof in the expected timeframe or at all; (vii) our ability to fund purchases of additional compression equipment; (viii) our ability to successfully implement our share repurchase program; (ix) a deterioration in general economic, business, geopolitical or industry conditions, including as a result of the conflict between Russia and Ukraine and the Israel-Hamas war, inflation, and slow economic growth in the United States; (x) a downturn in the economic environment, as well as continued inflationary pressures; (xi) international operations and related mobilization and demobilization of compression units, operational interruptions, delays, upgrades, refurbishment and repair of compression assets and any related delays and costs overruns or reduced payment of contracted rates; (xii) tax legislation and administrative initiatives or challenges to our tax positions; (xiii) the loss of key management, operational personnel or qualified technical personnel; (xiv) our dependence on a limited number of suppliers; (xv) the cost of compliance with existing and new governmental regulations, including climate change legislation, and associated uncertainty given the new U.S. federal government administration; (xvi) changes in trade policies and regulations, including increases or changes in duties, current and potentially new tariffs or quotas and other similar measures, as well as the potential direct and indirect impact of retaliatory tariffs and other actions; (xvii) the cost of compliance with regulatory initiatives and stakeholders' pressures, including sustainability and corporate responsibility; (xviii) the inherent risks associated with our operations, such as equipment defects and malfunctions; (xix) our reliance on third-party components for use in our IT systems; (xx) legal and reputational risks and expenses relating to the privacy, use and security of employee and client information; (xxi) threats of cyber-attacks or terrorism; (xxii) agreements that govern our debt contain features that may limit our ability to operate our business and fund future growth and also increase our exposure to risk during adverse economic conditions; (xxiii) volatile and/or elevated interest rates and associated central bank policy actions; (xxiv) our ability to access the capital and credit markets or borrow on affordable terms (or at all) to obtain additional capital that we may require; (xxv) major natural disasters, severe weather events or other similar events that could disrupt operations; (xxvi) unionization of our labor force, labor interruptions and new or amended labor regulations; (xxvii) renewal of insurance; (xxviii) the effectiveness of our disclosure controls and procedures; and (xxix) such other factors as discussed throughout the 'Risk Factors' and 'Management's Discussion and Analysis of Financial Condition and Results of Operations' sections of our Annual Report on Form 10-K for the year ended December 31, 2024, filed with the U.S. Securities and Exchange Commission.('SEC') on March 7, 2025, which can be obtained free of charge on the SEC's website at Any forward-looking statement made by us in this news release is based only on information currently available to us and speaks only as of the date on which it is made. Except as may be required by applicable law, we undertake no obligation to publicly update any forward-looking statement whether as a result of new information, future developments or otherwise. KODIAK GAS SERVICES, INC. CONDENSED CONSOLIDATED BALANCE SHEETS (UNAUDITED) (in thousands) March 31, 2025 December 31, 2024 Assets Current assets: Cash and cash equivalents $ 1,950 $ 4,750 Accounts receivable, net 253,660 253,637 Inventories, net 99,802 103,341 Fair value of derivative instruments — 3,672 Contract assets 19,888 7,575 Prepaid expenses and other current assets 11,778 10,686 Total current assets 387,078 383,661 Property, plant and equipment, net 3,400,154 3,395,022 Operating lease right-of-use assets, net 51,367 53,754 Finance lease right-of-use assets, net 8,177 5,696 Goodwill 415,213 415,213 Identifiable intangible assets, net 161,040 162,747 Fair value of derivative instruments 11,619 17,544 Other assets 1,474 1,486 Total assets $ 4,436,122 $ 4,435,123 Liabilities and Stockholders' Equity Current liabilities: Accounts payable $ 71,724 $ 57,562 Accrued liabilities 179,157 188,732 Contract liabilities 78,988 73,075 Total current liabilities 329,869 319,369 Long-term debt, net of unamortized debt issuance cost 2,588,329 2,581,909 Operating lease liabilities 46,524 49,748 Finance lease liabilities 5,978 3,514 Deferred tax liabilities 108,666 103,826 Other liabilities 899 3,150 Total liabilities $ 3,080,265 $ 3,061,516 Stockholders' equity: Preferred stock 8 9 Common stock 895 892 Additional paid-in capital 1,311,473 1,305,375 Treasury stock, at cost (49,956 ) (40,000 ) Noncontrolling interest 12,029 13,694 Accumulated other comprehensive loss (5,684 ) — Retained earnings 87,092 93,637 Total stockholders' equity 1,355,857 1,373,607 Total liabilities and stockholders' equity $ 4,436,122 $ 4,435,123 Expand KODIAK GAS SERVICES, INC. CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED) (in thousands) Three Months Ended March 31, 2025 2024 Cash flows from operating activities: Net income $ 31,036 $ 30,232 Adjustments to reconcile net income to net cash provided by operating activities: Depreciation and amortization 70,529 46,944 Equity compensation expense 6,978 2,848 Amortization of debt issuance costs 3,133 2,643 Non-cash lease expense 2,555 1,200 Provision for credit losses — 85 Inventory reserve 123 126 Loss on sale of assets 9,211 — Change in fair value of derivatives — (14,241 ) Amortization of interest rate swap 2,426 — Deferred tax provision 7,016 6,261 Changes in operating assets and liabilities, exclusive of effects of business acquisition: Accounts receivable (23 ) (30,130 ) Inventories 3,416 (6,794 ) Contract assets (12,313 ) (906 ) Prepaid expenses and other current assets (1,235 ) 5,103 Accounts payable 2,182 (2,324 ) Accrued and other liabilities (16,258 ) 5,872 Contract liabilities 5,913 4,623 Other assets (361 ) — Net cash provided by operating activities 114,328 51,542 Cash flows from investing activities: Purchase of property, plant and equipment (77,553 ) (60,153 ) Proceeds from sale of assets 9,376 — Other — 3 Net cash used for investing activities (68,177 ) (60,150 ) Cash flows from financing activities: Borrowings on debt instruments 347,491 1,008,476 Payments on debt instruments (344,204 ) (957,975 ) Principal payments on other borrowings (1,950 ) — Payment of debt issuance cost — (7,594 ) Principal payments on finance leases (719 ) — Offering costs — (446 ) Dividends paid to stockholders (36,445 ) (29,815 ) Repurchase of common shares (9,956 ) — Cash paid for shares withheld to cover taxes (2,827 ) (294 ) Net effect on deferred taxes and taxes payable related to the vesting of restricted stock 16 — Distributions to noncontrolling interest (357 ) — Net cash provided by (used for) financing activities (48,951 ) 12,352 Net increase (decrease) in cash and cash equivalents (2,800 ) 3,744 Cash and cash equivalents - beginning of period 4,750 5,562 Cash and cash equivalents - end of period $ 1,950 $ 9,306 Expand KODIAK GAS SERVICES, INC. (UNAUDITED) (in thousands, excluding percentages) Three Months Ended March 31, 2025 December 31, 2024 March 31, 2024 Net income $ 31,036 $ 19,600 $ 30,232 Interest expense 47,224 51,280 39,740 Income tax expense 10,524 15,547 9,875 Depreciation and amortization 70,529 70,413 46,944 Gain on derivatives — (17,790 ) (19,757 ) Equity compensation expense 6,978 5,594 2,848 Severance expense (1) 376 (712 ) — Transaction expenses (2) 1,786 4,731 7,880 Loss on sale of assets 9,211 20,409 — Adjusted EBITDA $ 177,664 $ 169,072 $ 117,762 Net income percentage 9.4 % 6.3 % 14.0 % Adjusted EBITDA percentage 53.9 % 54.6 % 54.6 % Expand (1) Represents severance expense related to the CSI acquisition. (2) Represents certain costs associated with non-recurring professional services and other costs, primarily related to the CSI Acquisition and secondary offerings. Expand Contract Services Three Months Ended March 31, 2025 December 31, 2024 March 31, 2024 Total revenues $ 288,956 $ 280,211 $ 193,399 Cost of operations (excluding depreciation and amortization) (93,235 ) (93,184 ) (65,882 ) Depreciation and amortization (70,529 ) (70,413 ) (46,944 ) Gross margin $ 125,192 $ 116,614 $ 80,573 Gross margin percentage 43.3 % 41.6 % 41.7 % Depreciation and amortization 70,529 70,413 46,944 Adjusted gross margin $ 195,721 $ 187,027 $ 127,517 Adjusted gross margin percentage 67.7 % 66.7 % 65.9 % Expand Other Services Three Months Ended March 31, 2025 December 31, 2024 March 31, 2024 Total revenues $ 40,686 $ 29,308 $ 22,093 Cost of operations (excluding depreciation and amortization) (35,226 ) (25,066 ) (17,684 ) Depreciation and amortization — — — Gross margin $ 5,460 $ 4,242 $ 4,409 Gross margin percentage 13.4 % 14.5 % 20.0 % Depreciation and amortization — — — Adjusted gross margin $ 5,460 $ 4,242 $ 4,409 Adjusted gross margin percentage 13.4 % 14.5 % 20.0 % Expand KODIAK GAS SERVICES, INC. RECONCILIATION OF NET CASH PROVIDED BY OPERATING ACTIVITIES TO DISCRETIONARY CASH FLOW AND FREE CASH FLOW (UNAUDITED) (in thousands) Three Months Ended March 31, 2025 December 31, 2024 March 31, 2024 Net cash provided by operating activities $ 114,328 $ 118,485 $ 51,542 Maintenance capital expenditures (16,407 ) (14,858 ) (10,642 ) Severance expense (1) 376 (712 ) — Transaction expenses (2) 1,786 4,731 7,880 Change in operating assets and liabilities 18,679 1,732 24,556 Other (3) (2,678 ) (1,688 ) (1,411 ) Discretionary cash flow $ 116,084 $ 107,690 $ 71,925 Growth capital expenditures (4)(5) (55,983 ) (44,693 ) (52,221 ) Other capital expenditures (4) (22,258 ) (26,393 ) (7,180 ) Proceeds from sale of assets 9,376 20,053 — Free cash flow $ 47,219 $ 56,657 $ 12,524 Expand (1) Represents severance expense related to the CSI acquisition. (2) Represents certain costs associated with non-recurring professional services and other costs, primarily related to the CSI Acquisition and secondary offerings. (3) Includes non-cash lease expense, provision for credit losses and inventory reserve. (4) For the three months ended March 31, 2025, December 31, 2024, and March 31, 2024, growth and other capital expenditures includes a $14.1 million increase, an $11.1 million increase and a $9.9 million increase in accrued capital expenditures, respectively. (5) For the three months ended March 31, 2025, December 31, 2024, and March 31, 2024, growth capital expenditures includes a non-cash increase in the sales tax accrual on compression equipment purchases of $1.2 million, $0.8 million and $0.3 million, respectively. These accrual amounts are estimated based on the best-known information as it relates to open audit periods with the State of Texas. Expand
Yahoo
23-04-2025
- Business
- Yahoo
Kodiak Gas Services Announces Increased Quarterly Dividend and First Quarter 2025 Earnings Release and Conference Call Schedule
THE WOODLANDS, Texas, April 23, 2025--(BUSINESS WIRE)--Kodiak Gas Services, Inc. (NYSE: KGS), ("Kodiak" or the "Company") today announced that its board of directors has declared an increase to its quarterly cash dividend to $0.45 per share of common stock for the first quarter of 2025 (the "Common Stock Dividend"). This Common Stock Dividend represents a ten percent increase over the Common Stock Dividend declared for the fourth quarter of 2024 and will be paid on May 15, 2025 to all stockholders of record as of the close of business on May 5, 2025. In conjunction with the Common Stock Dividend, Kodiak Gas Services, LLC ("Kodiak Services"), a subsidiary of Kodiak, has declared a distribution of $0.45 per unit for the first quarter of 2025, which will be paid on May 15, 2025 to all unitholders of record of Kodiak Services on May 5, 2025. Mickey McKee, Kodiak's President and Chief Executive Officer, commented "the increased dividend we announced today reflects the strength of Kodiak's business model and stability of the cash flows it generates. This is our second dividend increase in the last twelve months and demonstrates our ongoing commitment to return capital to our shareholders." Kodiak will release first quarter 2025 financial results on Wednesday, May 7, 2025, after the market closes. In conjunction with the release, the Company has scheduled a conference call, which will also be broadcast live over the Internet, on Thursday, May 8, 2025 at 11:00 a.m. Eastern Time (10:00 a.m. Central Time). What: Kodiak Gas Services First-Quarter 2025 Earnings Conference Call When: Thursday, May 8, 2025 at 11:00 a.m. Eastern / 10:00 a.m. Central How: Live via phone – By dialing 877-407-4012 and asking for the Kodiak Gas Services call at least 10 minutes prior to the start time, or Live over the Internet – By logging onto the web at the address below Where: A telephonic replay will be available through May 22, 2025 and may be accessed by dialing 877-660-6853 and using access code 13753388. A replay of the webcast will be available shortly after the call at for 180 days. About Kodiak Kodiak is a leading contract compression services provider in the United States, serving as a critical link in the infrastructure that enables the safe and reliable production and transportation of natural gas and oil. Headquartered in The Woodlands, Texas, Kodiak provides contract compression and related services to oil and gas producers and midstream customers in high–volume gas gathering systems, processing facilities, multi-well gas lift applications and natural gas transmission systems. Cautionary Note Regarding Forward-Looking Statements This news release contains "forward-looking statements" within the meaning of the safe harbor provisions of the U.S. Private Securities Litigation Reform Act of 1995. Forward-looking statements are neither historical facts nor assurances of future performance. Instead, they are based only on our current beliefs, expectations and assumptions regarding the future of our business, future plans and strategies, projections, anticipated events and trends, the economy and other future conditions. Forward-looking statements can be identified by words such as: "anticipate," "intend," "plan," "goal," "seek," "believe," "project," "estimate," "expect," "strategy," "future," "likely," "may," "should," "will" and similar references to future periods. Forward-looking statements contained herein include the amount and timing of future dividend payments. Because forward-looking statements relate to the future, they are subject to inherent uncertainties, risks and changes in circumstances that are difficult to predict and many of which are outside of our control. A list and description of risks, uncertainties and other factors can be found in the Part I, Item 1A. "Risk Factors" and Part II, Item 7. "Management's Discussion and Analysis of Financial Condition and Results of Operations" sections of our Annual Report on Form 10-K for the fiscal year ended December 31, 2024 and filed with the SEC on March 7, 2025 and any updates to those factors set forth in our subsequent quarterly reports on Form 10-Q or current reports on Form 8-K. Any forward-looking statement made by us in this news release is based only on information currently available to us and speaks only as of the date on which it is made. Except as may be required by applicable law, we undertake no obligation to publicly update any forward-looking statement whether as a result of new information, future developments or otherwise. View source version on Contacts Graham Sones, VP of Investor Relationsir@ (936) 755-3259 Sign in to access your portfolio
