Kodiak Gas Services Inc Stock Price, News & Analysis

Kodiak Gas Services (NYSE: KGS) has announced the completion of two significant stock transactions. First, a selling stockholder affiliated with EQT Infrastructure III and IV funds sold 3.22 million shares of common stock through a Rule 144 Sale, with J.P. Morgan acting as broker. Second, Kodiak concurrently executed a $10 million share repurchase from the selling stockholder at the same price per share as the Rule 144 Sale.

The share repurchase was conducted under Kodiak's existing $50 million share repurchase program, which was authorized in November 2024 and runs through December 31, 2025. Following this transaction, approximately $15 million remains available for future repurchases under the program. Notably, Kodiak did not receive any proceeds from the Rule 144 Sale.

Kodiak Gas Services (NYSE: KGS) reported strong Q1 2025 financial results and raised its full-year guidance. Net income reached $30.4M, up from $19.1M in Q4 2024. The company achieved record quarterly adjusted EBITDA of $177.7M and improved Contract Services adjusted gross margin to 67.7%. Key operational highlights include deploying 48,900 horsepower of new compression units and increasing fleet utilization to 96.9%. KGS enhanced shareholder returns by increasing quarterly dividend by 10% to $0.45 per share and repurchasing $10M of stock at $36.87/share. The company raised its full-year 2025 adjusted EBITDA guidance to $695-725M. Total debt stood at $2.6B with a credit agreement leverage ratio of 3.7x. Despite energy price volatility, management remains confident in U.S. natural gas supply growth and compression infrastructure demand.

Kodiak Gas Services (NYSE: KGS) has announced a 10% increase in its quarterly cash dividend to $0.45 per share for the first quarter of 2025, payable on May 15, 2025, to stockholders of record as of May 5, 2025. The company's subsidiary, Kodiak Gas Services, , will also distribute $0.45 per unit to its unitholders.

This marks the company's second dividend increase in twelve months, which CEO Mickey McKee attributes to the strength of Kodiak's business model and stable cash flows. The company will release its Q1 2025 financial results on May 7, 2025, after market close, followed by a conference call on May 8, 2025, at 11:00 a.m. Eastern Time.

Kodiak Gas Services (KGS) has initiated construction of two new facilities in Texas, demonstrating its commitment to the Permian Basin region. The groundbreaking ceremonies took place on April 14, 2025, for both locations.

The Midland facility, spanning 22 acres with 140,000 square feet of space, will house the Bears Academy training center featuring virtual reality labs, classrooms, and student accommodations. Completion is expected in June 2026.

The Pecos facility, covering 9 acres with 24,000 square feet of shop and office space, will serve as the western Permian Basin operations hub. This facility is scheduled for completion in December 2025.

Kodiak Gas Services (NYSE: KGS) reported strong financial results for Q4 and full year 2024. Net income reached $19.1M in Q4 and $49.9M for the full year, compared to a Q4 2023 loss of $6.9M and 2023 full-year income of $20.1M.

Key 2024 achievements include Adjusted EBITDA of $609.6M (up from $438.1M in 2023), fleet utilization increase to 97%, and deployment of 162,000 horsepower of new compression units primarily in the Permian Basin. The company divested 129,000 horsepower of non-core assets and executed $15M of a $50M share repurchase program.

For 2025, Kodiak projects Adjusted EBITDA between $685M-$725M with growth capital expenditures of $240M-$280M. The company maintains a strong presence in the Permian Basin, where approximately 70% of its horsepower is deployed. Total debt stood at $2.6B as of December 31, 2024, with $322.5M available on its ABL Facility.

Kodiak Gas Services (NYSE: KGS) announced that the 2024 Schedule K-1 investor tax packages for former CSI Compressco LP unitholders are now available online. These can be accessed through the K-1 Tax Package Support website at www.taxpackagesupport.com/compressco.

Kodiak completed the acquisition of CSI Compressco on April 1, 2024. For more information regarding the Tax Package for the year ending April 1, 2024, unitholders can call the K-1 Tax Package Support line toll-free at (877) 223-4851.

EQT has announced the completion of a significant stock sale involving Kodiak Gas Services (NYSE: KGS). Through an affiliate of EQT Infrastructure III and IV funds, the company sold approximately 3.7 million shares of Kodiak Gas Services common stock, generating gross proceeds of approximately USD 177 million. The transaction was executed on January 30, 2025, in accordance with Rule 144 of the Securities Act of 1933. Goldman Sachs & Co. served as the broker for this transaction.

Kodiak Gas Services (NYSE: KGS) has declared a quarterly cash dividend of $0.41 per share of common stock for Q4 2024, payable on February 21, 2025, to stockholders of record as of February 14, 2025. Similarly, Kodiak Services, a subsidiary, will distribute $0.41 per unit to its unitholders on the same dates.

The company will release its Q4 and full-year 2024 financial results on March 5, 2025, after market close, followed by a conference call on March 6, 2025, at 11:00 a.m. Eastern Time. The earnings call will be accessible via phone and webcast, with replay options available through March 20, 2025.

EQT, through its infrastructure funds III and IV, has completed an underwritten public offering of 5,500,000 shares of Kodiak Gas Services (NYSE: KGS) common stock. The offering generated gross proceeds of $232,925,000. Goldman Sachs & Co. and J.P. Morgan served as the underwriters for the offering, which was completed on December 13, 2024. Notably, Kodiak Gas Services did not participate in the share sale and received no proceeds from the transaction.