Kodiak Gas Services Reports 36.3% Revenue Growth to $1.16 Billion in 2024

Kodiak Gas Services, Inc. reported significant financial growth in its 2024 fiscal year, with total revenues reaching $1.16 billion, a 36.3% increase from $850.4 million in 2023. The company's Contract Services segment, which is critical for the production and transportation of natural gas and oil, generated $1.03 billion in revenue, up 40.6% from the previous year. This growth was largely attributed to the acquisition of CSI Compressco, which contributed approximately 22% of consolidated revenue. Net income for the year was $50.3 million, a substantial increase of 150.8% compared to $20.1 million in 2023.

The company experienced notable operational changes, including a 35% increase in fleet horsepower, which reached 4.4 million as of December 31, 2024. This growth was driven by the integration of new compression units acquired through the CSI Acquisition. The total number of revenue-generating compression units also rose by 50% to 4,592. However, fleet utilization decreased slightly to 96.5%, down from 99.9% in the previous year, reflecting the impact of the newly acquired units, which have lower horsepower on average.

In addition to its financial performance, Kodiak made strategic moves to enhance its market position. The company initiated a share repurchase program in November 2024, authorizing the buyback of up to $50 million of its common stock, with 434,783 shares repurchased by the end of the year. Kodiak also completed the sale of certain assets in the U.S. and its legal entities in Canada and Argentina, resulting in a total loss of approximately $21 million from these transactions. These actions are part of Kodiak's strategy to streamline operations and focus on its core business areas.

Looking ahead, Kodiak's management expressed optimism about future growth, particularly in the Permian Basin and Eagle Ford Shale, where approximately 82% of its compression assets are deployed. The company anticipates continued demand for its services driven by the increasing need for natural gas and oil production, particularly as U.S. LNG export capacity is expected to double by 2030. However, Kodiak also acknowledged potential risks, including regulatory pressures related to emissions reduction and the overall economic environment, which could impact its operations and financial performance.

Overall, Kodiak Gas Services, Inc. demonstrated strong financial and operational growth in 2024, positioning itself for future opportunities while navigating the complexities of the energy sector.