Kodiak Gas Services, Inc. reported significant financial developments in its 10-Q filing for the quarter ending September 30, 2024. The company experienced a notable increase in total revenues, which reached $324.6 million for the three months ended September 30, 2024, up 40.6% from $231.0 million in the same period of 2023. For the nine months ended September 30, 2024, total revenues were $849.8 million, a 36.1% increase compared to $624.4 million in the prior year. The growth was primarily driven by a substantial rise in contract services revenue, which increased by 52.3% to $284.3 million for the third quarter and by 38.1% to $754.0 million for the nine-month period, largely attributed to the acquisition of CSI Compressco LP.

Despite the revenue growth, Kodiak reported a net loss of $6.2 million for the third quarter of 2024, contrasting sharply with a net income of $21.8 million in the same quarter of 2023. The net income for the nine months ended September 30, 2024, was $30.7 million, up from $26.9 million in the previous year. The loss in the third quarter was attributed to increased operating expenses, which rose 52.1% to $258.6 million, driven by higher direct labor costs and depreciation expenses related to the CSI acquisition.

The company’s total assets increased significantly to $4.5 billion as of September 30, 2024, compared to $3.2 billion at the end of 2023. This growth was accompanied by a rise in long-term debt, which increased to $2.6 billion from $1.8 billion, reflecting the financing of the CSI acquisition. The acquisition, completed on April 1, 2024, involved a total consideration of $342.3 million and contributed approximately 27% of total revenues for the third quarter.

In terms of operational metrics, Kodiak's fleet horsepower increased by 37.5% to 4.4 million, with revenue-generating horsepower rising by 32.7% to 4.3 million. The company also reported a significant increase in depreciation and amortization expenses, which rose by 59.4% for the third quarter, largely due to the new assets acquired.

Additionally, Kodiak engaged in share repurchases, buying back 1 million shares at $25.00 each, totaling $25 million. The company also declared a cash dividend of $0.41 per share for the third quarter, reflecting its commitment to returning value to shareholders despite the recent operational challenges.