Kodiak Gas Services, Inc. · NYSE:KGS
Kodiak Gas Services — Investor Presentation (June 2025)
31 slides from Kodiak Gas Services's investor presentation, June 2025
Slide 1: Investor Presentation
Investor Presentation June 2025
Slide 2: Disclaimer
Disclaimer Cautionary Note Regarding Forward-Looking Statements. This presentation 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. Fo
Slide 3: Kodiak Gas Services Overview
Kodiak Gas Services Overview POWERING Our Critical Energy Future $3.1 billion $5.7 billion 5.1% Market Enterprise Dividend Capitalization1 Value1 Yield1 4.4 million ~7 years ~97% Fleet Average Age of Fleet Horsepower2 Large Horsepower2 Utilization Rate2 1 Market capitalization and enterprise value c
Slide 4: Kodiak Contract Compression Fleet
Kodiak Contract Compression Fleet Leading contract compression provider in the lowest cost to produce U.S. basins 4.4 million fleet horsepower1 3.5 million Combined horsepower in the 8% 2% Permian and Eagle Ford Northeast Northern Rockies 6% Fleet Horsepower Profile1 Mid-Continent 70% Permian % of r
Slide 5: Kodiak Investment Thesis
Kodiak Investment Thesis Constructive Industry ► Highly visible, multi-year domestic natural gas demand growth Fundamentals ► Tight equipment market with industry-wide capital discipline Compression Market ► 4.4 million horsepower compression fleet1 Leader ► Market leader in the Permian Robust Organ
Slide 6: First Quarter 2025 Highlights
First Quarter 2025 Highlights Adjusted EBITDA1 ($M) First Quarter and Recent Highlights $178 ► Reported record quarterly Adj. EBITDA of $177.7 million ~97% $169 $178 Fleet $118 ► Improved Contract Services Adj. Gross Margin utilization2 Percentage1 to 67.7% Q4 Q1 Q1 Q1 ► Repurchased ~$20 million of
Slide 7: Domestic Supply Chain Mitigates Tariff Risk
Domestic Supply Chain Mitigates Tariff Risk Illustrative Cost Trends Selectively sourced equipment helps 2024 vs 2025 expectations mitigate potential tariff impacts ► Major component suppliers located in U.S. Capital Spending1 ► Long-term relationships with key suppliers Major % of Total Outlook Com
Slide 8: Investing In Our Future
Investing In Our Future Building Experience And Real Skills BEARS IGNITE Telemetry-enabled fleet Academy Development Program ► ► Predictive analytics & machine ► Offers ~40 technical training courses ► Four-month internship program for learning ► Utilizes virtual reality training entry level field t
Slide 9: U.S. Compression Market
U.S. Compression Market Top 3 U.S. Contract Compression Providers = ~75% of the outsourced market1 U.S. Compression Market2 HP (in millions) % Outsourced (contract compression) 15 24% 4.8 Insourced (end user-owned) 48 76% 4.4 Total 63 100% 3.9 HP in millions 0.9 0.6 0.5 0.6 0.4 0.3 0.3 0.3 0.3 0.2 O
Slide 10: Compression Industry Tightness
Compression Industry Tightness Compression CapEx is Below Historical Levels...1 ...While Costs Have Risen2 $1,111 ~$1,200 $881 (per year) $ Millions ~$800 $ per HP $495 Average Average Average 2017 2025E 2017-2019 2020-2021 2022-2024 Increase in Industry Utilization Rate3 Increase in Industry Pricin
Slide 11: LNG is Primary Driver of Gas Growth
LNG is Primary Driver of Gas Growth 35 U.S. LNG Capacity1 ~12 Bcf/d 30 U.S. capacity additions ~3 Bcf/d through 2030 25 U.S. LNG capacity added in 2025 20 Bcf/d 15 10 U.S. LNG Capacity at YE 2024 ~14 Bcf/d 5 - 2024 2025 2026 2027 2028 2029 2030 1 Company reports as of May 30, 2025 and Goldman Sachs
Slide 12: Power is Secondary Driver of Gas Growth
Power is Secondary Driver of Gas Growth >200% ~15% >40% YoY increase in new CAGR through 2030 in of U.S. electricity is natural gas fired electric demand from natural gas-sourced3 power plants in 20251 new datacenters2 Rapidly Increasing Data Center Demand Presents Upside to Forecast Power 7 Demand5
Slide 13: Compression Growth Driven by Gas Growth
Compression Growth Driven by Gas Growth U.S. Gas Demand Growth U.S. Compression Intensity1 Mexico / Other 2 140 Bcf/d 63 million HP / 103 Bcf/d = ~600K HP per Bcf/d million HP 70 63 Power 120 60 Demand 7 100 104 103 100 50 46 93 92 95 24 Bcf/d midpoint 80 84 U.S. LNG 74 73 75 40 Demand 15 60 30 40 2
Slide 14: Permian Gas Positioned for Long-Term Growth
Permian Gas Positioned for Long-Term Growth Permian Basin ~50% of domestic Increased ~10% CAGR drilling activity located in drilling activity gross gas production the Permian Basin1 in higher GOR areas since 20202 >20% Takeaway Projects4 Capacity Start Pipeline4 (Bcf/d) Date More gas per Gulf Coast
Slide 15: Permian Compression Intensity
Permian Compression Intensity Permian Compression Requirements Long 01 02 03 04 Haul Pipeline Centralized Gathering Gas Residue Gas lift Systems Processing Compression Dry Long Gas Basins Haul Pipeline >3x 01 Compression required by Permian Basin vs Dry Gas Basins 1 Gathering Compression 15
Slide 16: Premier Customer Base
Premier Customer Base >50% >60% Long-Term Revenue from top 10 Revenue from Relationships with top customers1 investment grade rated customers customers1 High Quality Customer Base2 1 Based on total revenues for 2024 2 As of March 31, 2025 16
Slide 17: Contract Structure Supports Cash Flow
Contract Structure Supports Cash Flow 01 02 03 04 05 Fixed monthly Annual inflation Advance billing 98% mechanical Customer bears revenue index adjustments improves working availability mobilization and with multi-year capital cycle guarantee demobilization terms costs Percent of Fleet HP on Term1 M
Slide 18: Capital Allocation Framework
Capital Allocation Framework Adjusted EBITDA Targeting upper single digit % growth annually Cash Interest Cash Taxes Maintenance Capex ~80% of total debt either fixed rate or NOLs provide significant tax shield Based on predictive analytics & hours swapped to fixed Discretionary Cash Flow Shareholde
Slide 19: 2025 Capital Plan
2025 Capital Plan Full Year Capital Spending Growth Capital Other Capital Expenditures Expenditures ► New compression ► Safety-related unit units $315 - $355 upgrades ► Methane mitigation Million ► Operational unit systems 2025E CapEx upgrades ► Investments in AI ► Business systems ► Rolling stock/f
Slide 20: Strengthening Credit Profile
Strengthening Credit Profile Debt to EBITDA Ratio1 Credit Ratings2 Corporate Rating 3.7x Ba3 BB- 3.5x BB Q1 2025 YE 2025E Debt Maturity Profile2 $2,000 ABL Facility Senior Unsecured Notes $1,878 ~80% $1,600 Debt either fixed rate or swapped to fixed2 $1,200 ~3 years ($M) $800 $400 Until First Debt M
Slide 21: Contracted Cash Flow with Strong Margins
Contracted Cash Flow with Strong Margins Multi-Year Investment Flexibility to Q1 2025 Adjusted Revenue Contracts Grade Customers Move Assets Gross Margin2 Cost plus model Yes Mixed No 44% Utilities1 Take-or-pay contracts Yes Yes No 55% / throughput charge Pipelines1 Minimum volume commitments / Yes
Slide 22: Steady Business in Any Price Environment
Steady Business in Any Price Environment Quarterly Contract Services Adjusted Gross Margin 200 $196 20 $188 $187 $177 ~97% 180 18 160 % of AGM provided by Contract 16 Services segment1 140 14 $126 $128 $121 $115 $117 $112 120 12 $108 $104 $105 $104 $95 $97 100 $94 $94.53 $108.87 $93.75 10 $88 $89 $8
Slide 23: Sustained Cash Flow During Price Volatility
Sustained Cash Flow During Price Volatility Business Model Supports Sustained Cash Flow in Periods of Commodity Price Volatility 2025 2026 and Beyond ► No commodity price exposure ► Strong U.S. natural gas demand ► Fixed-revenue, term contracts with fundamentals driven by LNG and power inflation esc
Slide 24: Attractive Valuation
Attractive Valuation Adjusted EBITDA Growth Annual CAGR 2023 – 20261,2 Creating Value for 20% Shareholders 16% ► Valuation provides the potential for 13% further upside 6% ► Shareholder return program provides attractive cash return Kodiak Compression G&Ps Pipelines EV/2026 Adj. EBITDA2 13.0x 12.2x
Slide 25: Increasing Liquidity & Buying Back Stock
Increasing Liquidity & Buying Back Stock Top 5 Shareholders EQT Position (% of common shares outstanding)1 (% of common & preferred shares outstanding) 24% 34% 43% 84% 60% 57% 61% 65% January May 2024 2025 76% 66% 57% 43% 39% 35% Top 5 Shareholders Remaining Shareholders Q1 2024 Q2 2024 Q3 2024 Q4 2
Slide 26: Full-Year 2025 Guidance
Full-Year 2025 Guidance (All amounts below are in thousands except per share amounts and percentages) Low High Adjusted EBITDA (1) $ 695,000 $ 725,000 Discretionary Cash Flow (1)(2) $ 430,000 $ 455,000 Segment Information Contract Services Revenues $ 1,150,000 $ 1,200,000 Contract Services Adjusted
Slide 27: Supplemental Slides
Supplemental Slides KODIAK,>
Slide 28: Non-GAAP Financial Measures
Non-GAAP Financial Measures Adjusted Gross Margin and Adjusted Gross Margin Percentage Adjusted Gross Margin and Adjusted Gross Margin Percentage are considered non-GAAP financial measures. We define Adjusted Gross Margin as revenue less cost of operations, exclusive of depreciation and amortization
Slide 29: Reconciliation of Non-GAAP Financial Measures
Reconciliation of Non-GAAP Financial Measures Gross Margin to Adjusted Gross Margin Net Cash Provided by Operating Activities to DCF and FCF (in thousands) Q1 2024 Q4 2024 Q1 2025 (in thousands) Q1 2024 Q4 2024 Q1 2025 Total revenues $215,492 $309,519 $329,642 Net cash provided by operating activiti
Slide 30: Reconciliation of Non-GAAP Financial Measures
Reconciliation of Non-GAAP Financial Measures Gross Margin to Adjusted Gross Margin for Contract Services (in Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 thousands) 2020 2020 2020 2020 2021 2021 2021 2021 2022 2022 2022 2022 2023 2023 2023 2023 2024 2024 2024 2024 2025 Total Reven
Slide 31: Contact Us
Contact Us IR@KODIAKGAS.COM
Kodiak Gas Services — Investor Presentation (June 2025) on 6ix