NYSE$KGS

Kodiak Gas Services Inc · Q2 2024 earnings

Q2 2024 earnings · · Investor relations

Briefing

Kodiak Gas Services announced record revenues and Adjusted EBITDA, completed the acquisition of CSI Compressco, and raised full-year Adjusted EBITDA guidance.

Kodiak Gas Services reported record second-quarter results, driven by the acquisition of CSI Compressco. Total revenues reached $309.7 million, and Adjusted EBITDA was $154.3 million. The company increased its full-year Adjusted EBITDA guidance to $590 to $610 million and raised its estimate of cost synergies to over $30 million.

  • Total revenues were $309.7 million, compared to $203.3 million in Q2 2023.
  • Contract Services segment revenues were $276.3 million with a 64.0% Adjusted Gross Margin.
  • Adjusted EBITDA reached a record $154.3 million, compared to $107.9 million in Q2 2023.
  • The company increased full-year 2024 Adjusted EBITDA guidance to a range of $590 to $610 million.

Headline financials

Total Revenue

$310M

Previous: $203M+52.3%
EPS

$0.06

Previous: $0.21-71.4%
Fleet Utilization

94.3%

No prior period
Adjusted EBITDA

$154M

No prior period
Adj EBITDA Margin

49.8%

No prior period
Contract Services Adj GM %

64.0%

No prior period
Other Services Adj GM %

16.4%

No prior period
Discretionary Cash Flow

$90.6M

No prior period
Fleet Horsepower

4.5M

No prior period
Rev-Gen Horsepower

4.2M

No prior period
Fleet Compression Units

7.3K

No prior period
Rev-Gen Compression Units

5.8K

No prior period
HP per Rev-Gen Unit

734

No prior period
Capital Expenditures

-$177M

Previous: -$94M-88.4%
Free Cash Flow

-$171M

Previous: -$76.5M-123.4%
Net Income

$6.23M

Previous: $17.5M-64.4%
Operating Income

$54.2M

Previous: $62.1M-12.7%
Gross Profit

$113M

Previous: $74.8M+51.0%
Cash & Equivalents

$3.85M

Previous: $41.4M-90.7%
Total Assets

$4.44B

Previous: $3.26B+36.1%
Stock-Based Comp

$5.31M

Previous: $29K+18213.8%

Revenue & EPS history

Kodiak Gas Services · Revenue · Quarterly

$310M

Q2 2024+52.3%vs Q2 2023
Beat estimate in 6 of 11 quarters(55%)
ActualEstimate

Revenue by segment

Kodiak Gas Services · $231M total across 2 segments · Q3 2023

  • Contract Services
    $187M
  • Other Services
    $44.3M

Forward guidance

Kodiak Gas Services raised its full-year 2024 Adjusted EBITDA guidance to a range of $590 to $610 million and expects to generate Discretionary Cash Flow in the range of $365 to $385 million.

Tailwinds

  • Raised full-year 2024 Adjusted EBITDA guidance to a range of $590 to $610 million, a $10 million increase to the low end of the range
  • Expect to generate Discretionary Cash Flow in the range of $365 to $385 million in 2024
  • Expect Contract Services revenues between $1,000 and $1,040 million
  • Expect Other Services revenues between $120 and $140 million
  • New unit deliveries are effectively fully contracted through 2025

Headwinds

  • Unable to reconcile projected Adjusted EBITDA to projected net income (loss)
  • Unable to reconcile Discretionary Cash Flow to projected net cash provided by operating activities
  • Components of the calculations are inherently unpredictable
  • The inability to project certain components of the calculation would significantly affect the accuracy of the reconciliations
  • Discretionary Cash Flow assumes no change to Secured Overnight Financing Rate futures.

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 11 quarterly earnings reports · overlaid with Q2 2024

Historical avgQ2 2024

+0.1%

Avg return

Earnings day

+0.4%

Avg return

5 days after

-0.2%

Avg return

30 days after

71%

12 / 17 earnings

Positive

+8.3%

Q1 2026

Best reaction

-15.0%

Q4 2024

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026+8.3%+5.5%-4.9%
Q4 2025+4.0%-1.2%+7.1%
Q3 2025-6.6%-6.0%+1.3%
Q1 2025+3.9%+6.7%+8.4%
Q4 2024-15.0%-13.0%-22.9%
Q3 2024+6.3%+11.7%+26.7%
Q2 2024-9.6%-9.2%-9.1%
Q1 2024+1.0%-3.1%-8.2%
Q4 2023-6.1%-4.6%+5.1%
Q3 2022+5.1%+7.9%+9.2%
Q4 2021+5.1%+7.9%+9.2%
Q3 2023-0.5%+3.7%+7.2%
Q2 2022+1.3%-1.2%-7.0%
Q2 2023+1.3%-1.2%-7.0%
Q1 2022+1.3%-1.2%-7.0%
Q4 2022+1.3%-1.2%-7.0%
Q1 2023+1.3%+5.4%-4.5%

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