Core Viewpoint - Kodiak Gas Services, Inc. has announced a private offering of an additional $200 million in senior unsecured notes due 2033, indicating a strategic move to raise capital for future initiatives [1] Group 1: Offering Details - The offering consists of 6.500% senior unsecured notes, which are being issued as additional senior notes under the existing indenture dated September 5, 2025 [1] - The total principal amount for the additional notes is $200 million, reflecting the company's efforts to enhance its financial position [1]

Company Overview - Kodiak Gas Services, Inc. (NYSE:KGS) is a leading provider of natural gas contract compression services in the United States, known for its efficiency and reliability across major basins [2]. Recent Stock Performance - The share price of Kodiak Gas Services fell by 5.86% between September 5 and September 12, 2025, making it one of the energy stocks that lost the most during that week [1]. Stock Offering Impact - The recent decline in Kodiak Gas Services' stock price was influenced by the announcement of a public offering of 10,000,000 shares of its common stock by Frontier TopCo Partnership, L.P., which were priced below the last closing price [2]. - Following this stock sale, EQT, a Swedish global investor, reduced its stake in Kodiak Gas Services from 34.3% to 22.8% [3].

Core Viewpoint - Kingman Minerals Ltd. has successfully closed the second tranche of its oversubscribed non-brokered equity financing, raising a total of $113,400 through the issuance of 1,620,000 Units at a price of $0.07 per Unit [1][2]. Financing Details - The first tranche of the Offering raised gross proceeds of $612,953 through the issuance of 8,756,471 Units, along with 163,200 finder's warrants and $11,424 in finder's fees [2]. - Insider participation in the first tranche included directors and officers subscribing for 2,516,826 Units, generating gross proceeds of $176,177.82, while no insiders participated in the second tranche [3]. Future Financing Plans - The Company plans to undertake a follow-on non-brokered private placement of up to $500,000, maintaining the same terms as the previous Offering due to continued investor interest [4]. Use of Proceeds - Net proceeds from the Offering will be allocated to advance the Mohave Project in Mohave County, Arizona, focusing on permitting, drill targeting, and integrated technical work [5]. Technical Progress - Kingman has completed two rounds of underground sampling and two phases of core drilling, confirming significant gold and silver grades from historical accounts [6]. - Deeper drilling has indicated the potential for a broader mineralized system at depth, with multiple vein structures remaining open and untested [6]. - The Company is preparing a National Instrument 43-101 Technical Report to consolidate historical data with recent exploration results, with ongoing geological interpretations [7]. Finder's Compensation - In connection with the closing tranche, Kingman will pay a cash finder's fee of $6,804 and issue 97,200 non-transferable finder's warrants, each allowing the holder to acquire one common share at an exercise price of $0.09 until September 9, 2027 [8]. Unit Terms - Each Unit issued in the Offering consists of one common share and one common share purchase warrant, with warrants allowing the purchase of an additional common share at $0.09 for 24 months from issuance [9].

Core Viewpoint - Kodiak Gas Services, Inc. announced a public offering of 10,000,000 shares of common stock by Frontier TopCo Partnership, L.P., an affiliate of EQT Infrastructure III and IV, with Kodiak not selling any shares or receiving proceeds from the offering [1][2]. Company Overview - Kodiak Gas Services is a leading contract compression services provider in the United States, facilitating the production and transportation of natural gas and oil [4]. - The company is headquartered in The Woodlands, Texas, and serves oil and gas producers as well as midstream customers [4]. Offering Details - Goldman Sachs & Co. LLC is acting as the sole underwriter for the offering, which will be conducted under an automatic shelf registration statement filed with the SEC [2]. - The offering is subject to market conditions, and there is no assurance regarding its completion [1][2].

[Cautionary Note Regarding Forward-Looking Statements](index=4&type=section&id=Cautionary%20Note%20Regarding%20Forward-Looking%20Statements) This section provides a standard disclaimer on forward-looking statements, detailing inherent uncertainties and risks that could cause actual results to differ materially - Forward-looking statements are based on current beliefs, expectations, and assumptions about the future of the business, including plans, strategies, projections, anticipated events, and economic trends[6](index=6&type=chunk) - Key factors that could cause actual results to differ materially include operating results, capital expenditures, credit market volatility, potential acquisitions, litigation, and risk management strategies[7](index=7&type=chunk)[8](index=8&type=chunk) [PART I. FINANCIAL INFORMATION](index=6&type=section&id=PART%20I.%20FINANCIAL%20INFORMATION) This part presents Kodiak Gas Services, Inc.'s unaudited condensed consolidated financial statements for the quarter and six months ended June 30, 2025, and management's discussion and analysis [Item 1. Financial Statements (Unaudited)](index=6&type=section&id=Item%201.%20Financial%20Statements%20(Unaudited)) This section presents the unaudited condensed consolidated financial statements, including balance sheets, income, comprehensive income, equity, cash flows, and notes [Condensed Consolidated Balance Sheets](index=6&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) This section provides a snapshot of the company's financial position, detailing assets, liabilities, and stockholders' equity at specific points in time | (in thousands) | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | **Assets** | | | | Total current assets | $345,525 | $383,661 | | Property, plant and equipment, net | $3,392,339 | $3,395,022 | | Goodwill | $415,213 | $415,213 | | Total assets | $4,375,927 | $4,435,123 | | **Liabilities and Stockholders' Equity** | | | | Total current liabilities | $313,318 | $319,369 | | Long-term debt, net | $2,545,019 | $2,581,909 | | Total liabilities | $3,027,461 | $3,061,516 | | Total stockholders' equity | $1,348,466 | $1,373,607 | | Total liabilities and stockholders' equity | $4,375,927 | $4,435,123 | [Condensed Consolidated Statements of Operations](index=7&type=section&id=Condensed%20Consolidated%20Statements%20of%20Operations) This section details the company's revenues, operating expenses, and net income for the three and six months ended June 30, 2025 and 2024 | (in thousands, except per share data) | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :--- | :--- | :--- | :--- | :--- | | Total revenues | $322,843 | $309,653 | $652,485 | $525,145 | | Total operating expenses | $223,113 | $255,486 | $463,569 | $410,820 | | Income from operations | $99,730 | $54,167 | $188,916 | $114,325 | | Net income | $39,984 | $6,713 | $71,020 | $36,945 | | Net income attributable to common shareholders | $39,496 | $6,228 | $69,907 | $36,460 | | Basic EPS | $0.44 | $0.07 | $0.78 | $0.44 | | Diluted EPS | $0.43 | $0.06 | $0.76 | $0.41 | [Condensed Consolidated Statements of Comprehensive Income](index=8&type=section&id=Condensed%20Consolidated%20Statements%20of%20Comprehensive%20Income) This section presents the company's comprehensive income, including net income and other comprehensive income items, for the three and six months ended June 30, 2025 and 2024 | (in thousands) | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :--- | :--- | :--- | :--- | :--- | | Net income | $39,984 | $6,713 | $71,020 | $36,945 | | Cash flow hedges, net of tax effects | $(2,632) | — | $(8,316) | — | | Comprehensive income | $37,352 | $6,713 | $62,704 | $36,945 | | Comprehensive income attributable to common shareholders | $36,864 | $6,228 | $61,591 | $36,460 | [Condensed Consolidated Statements of Stockholders' Equity](index=9&type=section&id=Condensed%20Consolidated%20Statements%20of%20Stockholders'%20Equity) This section outlines the changes in stockholders' equity, including net income, other comprehensive loss, dividends, and share repurchases, for the six months ended June 30, 2025 - Total stockholders' equity decreased from **$1,373,607 thousand** as of January 1, 2025, to **$1,348,466 thousand** as of June 30, 2025[18](index=18&type=chunk)[19](index=19&type=chunk) - Key changes in stockholders' equity for the six months ended June 30, 2025, include net income of **$39,984 thousand**, other comprehensive loss of **$(8,316) thousand**, dividends paid of **$(77,603) thousand**, and common share repurchases of **$(19,956) thousand**[18](index=18&type=chunk)[19](index=19&type=chunk) [Condensed Consolidated Statements of Cash Flows](index=11&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) This section summarizes the company's cash inflows and outflows from operating, investing, and financing activities for the six months ended June 30, 2025 and 2024 | (in thousands) | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :--- | :--- | :--- | | Net cash provided by operating activities | $291,500 | $172,624 | | Net cash used for investing activities | $(142,565) | $(167,352) | | Net cash used for financing activities | $(148,257) | $(6,982) | | Net increase (decrease) in cash and cash equivalents | $678 | $(1,710) | | Cash and cash equivalents - end of period | $5,428 | $3,852 | [Notes to Unaudited Condensed Consolidated Financial Statements](index=13&type=section&id=Notes%20to%20Unaudited%20Condensed%20Consolidated%20Financial%20Statements) This section provides detailed explanations and disclosures supporting the unaudited condensed consolidated financial statements [1. Organization and Description of Business](index=13&type=section&id=1.%20Organization%20and%20Description%20of%20Business) This subsection describes Kodiak Gas Services, Inc.'s core operations as a contract compression infrastructure provider in the U.S - Kodiak Gas Services, Inc. operates contract compression infrastructure and related services primarily in the U.S., under fixed-revenue contracts with upstream and midstream customers[25](index=25&type=chunk) - The majority of the Company's assets and liabilities are operated under its subsidiary, Kodiak Gas Services, LLC, which is a variable interest entity where Kodiak is the primary beneficiary[26](index=26&type=chunk) [2. Basis of Presentation](index=13&type=section&id=2.%20Basis%20of%20Presentation) This subsection outlines the accounting principles and standards used in preparing the unaudited condensed consolidated financial statements - The unaudited condensed consolidated financial statements are prepared in accordance with GAAP and SEC rules for interim financial information, with certain footnotes condensed or omitted[27](index=27&type=chunk) - The Company is evaluating the impact of recently issued accounting pronouncements: ASU 2023-09 (Income Taxes) effective after December 15, 2024, and ASU 2024-03 (Disaggregation of Income Statement Expenses) effective after December 15, 2026[28](index=28&type=chunk)[29](index=29&type=chunk) [3. Acquisitions and Divestitures](index=13&type=section&id=3.%20Acquisitions%20and%20Divestitures) This subsection details significant business combinations and asset disposals, including the CSI Compressco acquisition and a sale-leaseback agreement - On April 1, 2024, Kodiak completed the acquisition of CSI Compressco for **$342.3 million**, issuing **6.8 million** common shares and **5.6 million** preferred shares[30](index=30&type=chunk) | (in thousands) | Amount | | :--- | :--- | | Fair value of consideration transferred | $342,285 | | Total identifiable assets acquired less liabilities assumed | $232,396 | | Goodwill acquired | $109,889 | - Acquisition-related costs were approximately **$0.6 million** for the six months ended June 30, 202

Financial Data and Key Metrics Changes - Adjusted EBITDA for Q2 2025 was $178.2 million, a 15% increase compared to Q2 2024 [20] - Net income attributable to common shareholders was $39.5 million, or $0.43 per fully diluted share, significantly up from $6.2 million, or $0.06 per share in 2024 [21] - Free cash flow reached a record $70 million, contributing to a leverage ratio of 3.6 times as of June 30 [24][13] Business Line Data and Key Metrics Changes - Contract Services segment revenue per ending horsepower was $22.77, showing a sequential uplift and year-over-year growth [21] - Contract Services adjusted gross margin increased to 68.3%, a 430 basis point rise compared to 2024 [15][21] - The Other Services segment generated revenues of approximately $29 million, with margins expected to align with guidance [21][19] Market Data and Key Metrics Changes - Fleet utilization exceeded 97%, with large horsepower units effectively fully utilized at over 99% [8] - The demand for large horsepower compression is driven by increasing natural gas volumes in the Permian Basin, with one major producer planning a 40% production increase by 2030 [8][9] - The outlook for natural gas remains strong, supported by significant LNG purchase contracts and a recent trade deal with the EU for $750 billion in U.S. energy products [10] Company Strategy and Development Direction - The company announced a $100 million increase to its share repurchase program, reflecting confidence in its strategy and commitment to returning capital to shareholders [5] - Kodiak was added to the S&P Small Cap 600 Index, enhancing visibility and shareholder value [6] - The company is focusing on high grading its fleet by divesting non-core, low-margin units while adding new horsepower units [14][12] Management's Comments on Operating Environment and Future Outlook - Management noted a disconnect between investor sentiment and actual market conditions in the Permian Basin, emphasizing continued demand for large horsepower compression despite oil price fluctuations [30][31] - The company expects new unit growth in Q3 to exceed previous expectations due to timely deliveries and has raised the midpoint of its adjusted EBITDA guidance [18][26] - Management highlighted the successful implementation of a new ERP system aimed at improving operational efficiency and reducing costs [17][34] Other Important Information - The company executed several transactions to acquire compressors that fit well within its existing operations, positively impacting revenue growth [12] - The company continues to focus on technology investments, including AI and machine learning, to enhance asset management and operational efficiency [16][57] Q&A Session Summary Question: Disconnect between ground realities and investor sentiment - Management acknowledged the disconnect, attributing it to differing perceptions of gas versus oil growth in the Permian Basin [30][31] Question: Future margin expectations - Management expressed optimism about continued margin improvement due to operational efficiencies from the new ERP system and technology investments [32][34] Question: Acquisition strategy and growth - Management indicated that recent acquisitions are part of their growth strategy, focusing on opportunistic deals that enhance margins [39] Question: Buyback strategy - Management stated that buyback decisions will be influenced by share price, aiming to maintain leverage targets while taking advantage of price weaknesses [40][41] Question: CapEx and fleet additions outlook - Management refrained from providing specific numbers for next year's CapEx but expressed confidence in current contracting and backlog levels [46][48] Question: Labor availability concerns - Management confirmed that labor availability remains tight in the Permian Basin, prompting initiatives to train younger technicians [75] Question: Economics of recent asset acquisitions - Management noted that acquisition economics vary, typically ranging from $200 to $400 per horsepower, depending on strategic fit and density [78] Question: Focus on gas cryo business post-acquisition - Management indicated that the gas cryo business remains a small but profitable part of their operations, with no immediate plans for significant capital investment [82]

Core Viewpoint - Kodiak Gas Services reported mixed financial results for Q2 2025, with earnings and revenue falling short of analyst expectations, yet achieving record highs in adjusted EBITDA and free cash flow, leading to an optimistic outlook for the remainder of the fiscal year [1][5][9]. Financial Performance - GAAP diluted earnings per share were $0.43, missing the estimate of $0.45, while revenue was $322.8 million, below the forecast of $333.5 million [1][2]. - Adjusted EBITDA reached a record $178.2 million, up 15.5% year-over-year, and free cash flow soared to $70.3 million, a significant increase from $0.6 million in Q2 2024 [2][5]. - Contract Services revenue was $293.5 million, reflecting a 6.2% increase from $276.3 million in the previous year [2]. Business Overview - Kodiak Gas Services specializes in large horsepower contract compression services, primarily serving the U.S. natural gas industry, with a strong presence in the Permian Basin [3]. - The company's success is attributed to long-term contracts, high fleet utilization, and a focus on advanced compression technology [4]. Operational Highlights - The company achieved a utilization rate of 97.2%, indicating strong demand for its equipment [5]. - The adjusted gross margin for Contract Services improved to 68.3%, marking the fourth consecutive quarter of margin expansion [6]. Debt and Shareholder Returns - Kodiak reduced its total debt by approximately $48 million, ending the period with $2.6 billion in total debt and a leverage ratio of 3.6x [8]. - The Board increased the share repurchase program by $100 million, with $115 million remaining after $60 million in repurchases [8]. Future Outlook - Management raised the full-year 2025 adjusted EBITDA guidance to a range of $700 million to $725 million and projected discretionary cash flow between $445 million and $465 million [9]. - Guidance for Contract Services revenue is set at $1.16 to $1.20 billion, with expected adjusted gross margin between 67.0% and 69.0% [9][10].

Company Performance - Kodiak Gas Services (KGS) reported quarterly earnings of $0.49 per share, exceeding the Zacks Consensus Estimate of $0.46 per share, and up from $0.23 per share a year ago [1][2] - The earnings surprise for the quarter was +6.52%, and the company has surpassed consensus EPS estimates in all four of the last quarters [2] - Revenues for the quarter were $322.84 million, which missed the Zacks Consensus Estimate by 2.46%, but increased from $309.65 million year-over-year [3] Future Outlook - The current consensus EPS estimate for the upcoming quarter is $0.48, with expected revenues of $339.78 million, and for the current fiscal year, the EPS estimate is $2.13 on revenues of $1.35 billion [8] - The estimate revisions trend for Kodiak Gas was favorable ahead of the earnings release, resulting in a Zacks Rank 1 (Strong Buy) for the stock, indicating expected outperformance in the near future [7] Industry Context - Kodiak Gas operates within the Oil and Gas - Mechanical and Equipment industry, which is currently ranked in the top 41% of over 250 Zacks industries [9] - The industry has shown a strong correlation between near-term stock movements and trends in earnings estimate revisions, suggesting that the performance of Kodiak Gas may be influenced by broader industry trends [6][9]

[Executive Summary & Highlights](index=1&type=section&id=Executive%20Summary%20%26%20Highlights) Kodiak Gas Services presents a comprehensive overview of its Q2 2025 performance and revised full-year outlook, emphasizing strong financial results and strategic initiatives [Second Quarter 2025 Performance Highlights](index=1&type=section&id=Second%20Quarter%202025%20Performance%20Highlights) Kodiak Gas Services reported strong financial and operational results for Q2 2025, achieving record earnings per share, adjusted EBITDA, and free cash flow, alongside significant improvements in contract services adjusted gross margin and fleet utilization | Metric | Q2 2025 Value | Change vs. Q2 2024 | | :----------------------------------- | :------------ | :------------------- | | **Net income attributable to common shareholders** | **$39.5 million** | **+537%** (from $6.2M) | | **Earnings per share** (diluted) | **$0.43** | - | | **Adjusted EBITDA** | **$178.2 million** | **+15.5%** | | **Contract Services adjusted gross margin percentage** | **68.3%** | **+430 basis points** | | **Free cash flow** | **$70.3 million** | - | | **Capital Returned to Stockholders** (Dividends & Repurchases) | Over **$50 million** | - | | **New Large Horsepower Compression Units Deployed** | **31,800 horsepower** | - | | **Fleet utilization** | **97.2%** | **+290 basis points** | - Kodiak was added to the **S&P SmallCap 600 index** effective August 6, 2025, signifying **financial strength** and **commitment** to **profitable growth**[6](index=6&type=chunk)[11](index=11&type=chunk) [Revised Full-Year 2025 Outlook Highlights](index=1&type=section&id=Revised%20Full-Year%202025%20Outlook%20Highlights) The company increased its full-year 2025 guidance for adjusted EBITDA and discretionary cash flow, reflecting continued confidence in its operational performance and market position | Metric | Revised Full-Year 2025 Guidance Range | | :----------------------------------- | :------------------------------------ | | **Adjusted EBITDA** | **$700 million** to **$725 million** | | **Discretionary cash flow** | **$445 million** to **$465 million** | [CEO Commentary](index=1&type=section&id=CEO%20Commentary) CEO Mickey McKee highlighted the company's commitment to operational excellence, strategic focus on large horsepower compression, fleet optimization, and investments in technology and personnel as drivers for record adjusted EBITDA and improved margins. He expressed confidence in long-term growth prospects due to Permian Basin natural gas production growth and strong demand from data centers and LNG projects, reinforcing the decision to increase the share repurchase program - The company's **strategic focus** on large horsepower compression, **fleet optimization**, and **significant investments** in technology and personnel contributed to a fourth consecutive quarterly **increase** in **Contract Services adjusted gross margin percentage** and **record** quarterly **Adjusted EBITDA**[4](index=4&type=chunk) - **Confidence** in **long-term growth** is driven by highly visible **Permian Basin natural gas production growth** and **strong demand outlook from power demand for data centers and domestic LNG projects**[7](index=7&type=chunk) - The **increase** in the **share repurchase program** reflects **confidence** in the business and **commitment** to returning capital to shareholders, while maintaining focus on **superior service** and a **reliable** compression fleet[8](index=8&type=chunk) [Operational and Financial Updates](index=2&type=section&id=Operational%20and%20Financial%20Updates) This section details Kodiak's segment performance, debt management, S&P index inclusion, and share repurchase activities [Segment Performance](index=2&type=section&id=Segment%20Performance) Kodiak's Contract Services segment demonstrated robust growth in revenue and gross margin, while Other Services experienced a revenue decrease but a significant increase in gross margin [Contract Services](index=2&type=section&id=Contract%20Services) The Contract Services segment demonstrates robust revenue and gross margin growth, reflecting strong operational performance | Metric | Q2 2025 Value | Q2 2024 Value | YoY Change | | :-------------------------- | :------------ | :------------ | :--------- | | **Revenue** | **$293.5 million** | **$276.3 million** | **+6.3%** | | **Gross Margin** | **$134.3 million** | **$107.5 million** | **+24.9%** | | **Adjusted Gross Margin** | **$200.4 million** | **$176.9 million** | **+13.3%** | [Other Services](index=2&type=section&id=Other%20Services) The Other Services segment experienced a revenue decrease but a significant increase in gross margin, indicating improved profitability | Metric | Q2 2025 Value | Q2 2024 Value | YoY Change | | :-------------------------- | :------------ | :------------ | :--------- | | **Revenue** | **$29.3 million** | **$33.4 million** | **-12.3%** | | **Gross Margin & Adjusted Gross Margin** | **$7.2 million** | **$5.5 million** | **+31.6%** | [Long-Term Debt and Liquidity](index=2&type=section&id=Long-Term%20Debt%20and%20Liquidity) The company reduced its debt outstanding by approximately $48 million during Q2 2025, maintaining a healthy liquidity position with significant availability on its ABL Facility | Metric | As of June 30, 2025 | | :-------------------------------- | :------------------ | | **Debt Reduction** (Q2 2025) | ~**$48 million** | | **Total Debt Outstanding** | **$2.6 billion** | | **ABL Facility Availability** | **$366.4 million** | | **Credit Agreement Leverage Ratio** | **3.6x** | [S&P SmallCap 600 Index Inclusion](index=2&type=section&id=S%26P%20SmallCap%20600%20Index%20Inclusion) Kodiak Gas Services was announced to join the S&P SmallCap 600 index, effective August 6, 2025, marking a significant milestone that affirms its financial strength and commitment to profitable growth - Kodiak will join the **S&P SmallCap 600 index** effective August 6, 2025, which is a **significant milestone** affirming the company's **financial strength** and **commitment** to **profitable growth**[6](index=6&type=chunk)[11](index=11&type=chunk) [Share Repurchase Program](index=2&type=section&id=Share%20Repurchase%20Program) The Board of Directors approved a $100 million increase to the share repurchase program, extending its expiration to December 31, 2026, bringing the total available for repurchases to $115.0 million. To date, the company has repurchased approximately 2.0 million shares for $60.0 million | Metric | Details | | :-------------------------------- | :------------------------------------------------ | | **Program Increase** | **$100 million** | | New Expiration Date | December 31, 2026 | | **Total Available for Repurchases** | **$115.0 million** | | **Shares Repurchased to Date** | ~**2.0 million shares** | | **Aggregate Amount Repurchased to Date** | **$60.0 million** (at a weighted average price of **$30.24**) | [Summary Financial and Operating Data](index=3&type=section&id=Summary%20Financial%20and%20Operating%20Data) This section provides a detailed overview of Kodiak's financial and operating performance for Q2 2025 and comparative periods [Summary Financial Data](index=3&type=section&id=Summary%20Financial%20Data) The summary financial data for Q2 2025 shows significant improvements across key profitability and cash flow metrics compared to both the previous quarter and the prior year, driven by strong performance in Contract Services | Metric (in thousands) | June 30, 2025 | March 31, 2025 | June 30, 2024 | QoQ Change (vs. Mar 2025) | YoY Change (vs. Jun 2024) | | :----------------------------------- | :------------ | :------------- | :------------ | :------------------------ | :------------------------ | | **Total revenues** | **$322,843** | **$329,642** | **$309,653** | **-2.1%** | **+4.2%** | | **Net income attributable to common shareholders** | **$39,496** | **$30,411** | **$6,228** | **+29.9%** | **+534.2%** | | **Adjusted EBITDA** | **$178,216** | **$177,664** | **$154,342** | **+0.3%** | **+15.5%** | | **Adjusted EBITDA percentage** | **55.2%** | **53.9%** | **49.8%** | **+1.3 pp** | **+5.4 pp** | | **Contract Services revenue** | **$293,534** | **$288,956** | **$276,250** | **+1.6%** | **+6.3%** | | **Contract Services adjusted gross margin** | **$200,397** | **$195,721** | **$176,917** | **+2.4%** | **+13.3%** | | **Contract Services adjusted gross margin percentage** | **68.3%** | **67.7%** | **64.0%** | **+0.6 pp** | **+4.3 pp** | | **Other Services revenue** | **$29,309** | **$40,686** | **$33,403** | **-27.9%** | **-12.3%** | | **Other Services adjusted gross margin** | **$7,195** | **$5,460** | **$5,467** | **+31.8%** | **+31.6%** | | **Other Services adjusted gross margin percentage** | **24.5%** | **13.4%** | **16.4%** | **+11.1 pp** | **+8.1 pp** | | **Maintenance capital expenditures** | **$17,565** | **$16,407** | **$19,147** | **+7.1%** | **-8.2%** | | **Growth capital expenditures** | **$37,966** | **$55,983** | **$77,257** | **-32.2%** | **-50.9%** | | **Other capital expenditures** | **$16,398** | **$22,258** | **$13,133** | **-26.3%** | **+24.9%** | | **Discretionary cash flow** | **$116,424** | **$116,084** | **$90,617** | **+0.3%** | **+28.5%** | | **Free cash flow** | **$70,290** | **$47,219** | **$638** | **+48.8%** | **+10917.2%** | [Summary Operating Data](index=4&type=section&id=Summary%20Operating%20Data) Operating data as of June 30, 2025, indicates a slight decrease in total fleet horsepower but an increase in revenue-generating horsepower, leading to improved fleet utilization and higher horsepower per revenue-generating unit | Metric | June 30, 2025 | March 31, 2025 | June 30, 2024 | QoQ Change (vs. Mar 2025) | YoY Change (vs. Jun 2024) | | :------------------------------------------ | :------------ | :------------- | :------------ | :------------------------ | :------------------------ | | **Fleet horsepower** | **4,419,884** | **4,422,914** | **4,481,900** | **-0.1%** | **-1.4%** | | **Revenue-generating horsepower** | **4,296,978** | **4,284,103** | **4,224,839** | **+0.3%** | **+1.7%** | | **Fleet compression units** | **4,881** | **4,941** | **7,317** | **-1.2%** | **-33.3%** | | **Revenue-generating compression units** | **4,514** | **4,545** | **5,753** | **-0.7%** | **-21.5%** | | **Revenue-generating horsepower per revenue-generating compression unit** | **952** | **943** | **734** | **+1.0%** | **+29.7%** | | **Fleet utilization** | **97.2%** | **96.9%** | **94.3%** | **+0.3 pp** | **+2.9 pp** | [Full-Year 2025 Guidance](index=4&type=section&id=Full-Year%202025%20Guidance) Kodiak Gas Services provides its updated full-year 2025 financial and operational guidance, reflecting confidence in future performance [Full-Year 2025 Guidance](index=4&type=section&id=Full-Year%202025%20Guidance) Kodiak Gas Services has provided revised full-year 2025 guidance, increasing the low end of the Adjusted EBITDA range and raising the Discretionary Cash Flow guidance, while also providing specific revenue and margin targets for its Contract and Other Services segments, and capital expenditure forecasts | Metric (in thousands, excluding percentages) | Low | High | | :----------------------------------- | :---------- | :---------- | | **Adjusted EBITDA** | **$700,000** | **$725,000** | | **Discretionary cash flow** | **$445,000** | **$465,000** | | **Contract Services revenues** | **$1,160,000** | **$1,200,000** | | **Contract Services adjusted gross margin percentage** | **67.0%** | **69.0%** | | **Other Services revenues** | **$120,000** | **$140,000** | | **Other Services adjusted gross margin percentage** | **14.0%** | **17.0%** | | **Maintenance capital expenditures** | **$75,000** | **$85,000** | | **Growth capital expenditures** | **$180,000** | **$205,000** | | **Other capital expenditures** | **$60,000** | **$65,000** | | **Total Growth and Other capital expenditures** | **$240,000** | **$270,000** | [Company Information & Disclosures](index=5&type=section&id=Company%20Information%20%26%20Disclosures) This section provides essential company information, including conference call details, company overview, non-GAAP definitions, and forward-looking statements [Conference Call Details](index=5&type=section&id=Conference%20Call%20Details) Kodiak will host a conference call on Thursday, August 7, 2025, to discuss its Q2 2025 financial and operating results, with details provided for phone and webcast access - A conference call to discuss Q2 2025 results will be held on Thursday, August 7, 2025, at 10:00 a.m. Eastern Time (9:00 a.m. Central Time)[22](index=22&type=chunk) [About Kodiak Gas Services](index=5&type=section&id=About%20Kodiak%20Gas%20Services) Kodiak Gas Services is a leading contract compression services provider in the United States, offering critical energy infrastructure and services to oil and gas producers and midstream customers, headquartered in The Woodlands, Texas - Kodiak is a **leading contract compression services provider** in the U.S., providing **critical energy infrastructure** for natural gas and oil production and transportation[23](index=23&type=chunk) - The company serves oil and gas producers and midstream customers in high-volume gas gathering systems, processing facilities, multi-well gas lift applications, and natural gas transmission systems[23](index=23&type=chunk) [Non-GAAP Financial Measures Definitions](index=5&type=section&id=Non-GAAP%20Financial%20Measures%20Definitions) This section provides definitions and rationale for the non-GAAP financial measures used by Kodiak, including Adjusted EBITDA, Adjusted Gross Margin, Discretionary Cash Flow, and Free Cash Flow, explaining their utility for management and investors in assessing performance and liquidity - **Adjusted EBITDA** is defined as **net income (loss)** before interest, taxes, **depreciation and amortization**, plus specific non-recurring items, used to assess **financial performance** without financing methods or **capital structure impact**[24](index=24&type=chunk) - **Adjusted gross margin** is revenue less cost of operations (excluding **depreciation and amortization**), serving as a **supplemental measure** of **operating profitability**[25](index=25&type=chunk) - **Discretionary cash flow** is **net cash provided by operating activities** less **maintenance capital expenditures** and certain **changes in operating assets and liabilities**, plus specific non-recurring items, used to assess **ability to pay dividends** and make **growth capital expenditures**[26](index=26&type=chunk) - **Free cash flow** is **net cash provided by operating activities** less **maintenance**, **growth**, and **other capital expenditures**, plus specific non-recurring items and **proceeds from asset sales**, used to assess **ability to pursue business opportunities** and **service debt**[27](index=27&type=chunk) [Cautionary Note Regarding Forward-Looking Statements](index=5&type=section&id=Cautionary%20Note%20Regarding%20Forward-Looking%20Statements) The report includes a cautionary note regarding forward-looking statements, emphasizing that these are based on current beliefs and assumptions, subject to inherent uncertainties and risks that could cause actual results to differ materially. The company disclaims any obligation to publicly update these statements - Forward-looking statements are based on **current beliefs**, **expectations**, and **assumptions**, and are subject to **inherent uncertainties**, **risks**, and **changes in circumstances** that are difficult to predict and outside of the company's control[28](index=28&type=chunk)[31](index=31&type=chunk) - **Actual results** and **financial condition** may differ materially from those indicated in forward-looking statements due to various factors, including **demand for natural gas/oil**, **customer financial condition**, **competitive pressures**, **integration of acquisitions**, and **economic conditions**[31](index=31&type=chunk) - The company undertakes no obligation to **publicly update** any forward-looking statement, except as required by **applicable law**[32](index=32&type=chunk) [Condensed Consolidated Financial Statements (Unaudited)](index=8&type=section&id=Condensed%20Consolidated%20Financial%20Statements%20(Unaudited)) This section presents Kodiak's unaudited condensed consolidated financial statements, including statements of operations, balance sheets, and cash flows [Condensed Consolidated Statements of Operations](index=8&type=section&id=Condensed%20Consolidated%20Statements%20of%20Operations) The unaudited condensed consolidated statements of operations provide a detailed breakdown of revenues, operating expenses, and net income for the three months ended June 30, 2025, March 31, 2025, and June 30, 2024 - The table presents **detailed revenues**, **operating expenses**, **income from operations**, other income/expenses, **income before income taxes**, **income tax expense**, **net income**, and **earnings per share** for the specified periods[34](index=34&type=chunk) [Condensed Consolidated Balance Sheets](index=9&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) The unaudited condensed consolidated balance sheets present the company's assets, liabilities, and stockholders' equity as of June 30, 2025, and December 31, 2024, showing changes in financial position over the period - The table provides a snapshot of **current assets**, **non-current assets** (including **property, plant and equipment**, **goodwill**, and **intangibles**), **current liabilities**, **long-term debt**, and **stockholders' equity** at the end of the reporting periods[36](index=36&type=chunk) [Condensed Consolidated Statements of Cash Flows](index=10&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) The unaudited condensed consolidated statements of cash flows detail the cash generated from or used in operating, investing, and financing activities for the six months ended June 30, 2025, and June 30, 2024 - The table outlines **net cash provided by operating activities**, **net cash used for investing activities** (including **purchase of property, plant and equipment**), and **net cash used for financing activities** (including **debt payments**, **dividends**, and **share repurchases**)[38](index=38&type=chunk) [Non-GAAP Reconciliations (Unaudited)](index=11&type=section&id=Non-GAAP%20Reconciliations%20(Unaudited)) This section provides detailed reconciliations of non-GAAP financial measures to their most directly comparable GAAP measures [Reconciliation of Net Income (Loss) to Adjusted EBITDA](index=11&type=section&id=Reconciliation%20of%20Net%20Income%20(Loss)%20to%20Adjusted%20EBITDA) This section provides a reconciliation of net income (loss) to Adjusted EBITDA, a non-GAAP measure, for the three months ended June 30, 2025, March 31, 2025, and June 30, 2024, detailing adjustments for interest, taxes, depreciation, amortization, and other non-recurring items - The reconciliation shows the **adjustments made to GAAP net income** to arrive at **Adjusted EBITDA**, including adding back **interest expense**, **income tax expense**, **depreciation and amortization**, and other specific non-cash or non-recurring items[39](index=39&type=chunk) [Reconciliation of Adjusted Gross Margin to Gross Margin](index=12&type=section&id=Reconciliation%20of%20Adjusted%20Gross%20Margin%20to%20Gross%20Margin) This section reconciles Adjusted Gross Margin to Gross Margin for both Contract Services and Other Services segments for the three months ended June 30, 2025, March 31, 2025, and June 30, 2024, primarily by adding back depreciation and amortization - The reconciliation for Contract Services shows **Adjusted Gross Margin** is derived by adding back **depreciation and amortization** to **Gross Margin**[41](index=41&type=chunk) - For Other Services, **Gross Margin** and **Adjusted Gross Margin** are identical as there is no **depreciation and amortization** allocated to this segment in the calculation[42](index=42&type=chunk) [Reconciliation of Net Cash Provided by Operating Activities to Discretionary Cash Flow and Free Cash Flow](index=13&type=section&id=Reconciliation%20of%20Net%20Cash%20Provided%20by%20Operating%20Activities%20to%20Discretionary%20Cash%20Flow%20and%20Free%20Cash%20Flow) This section provides a reconciliation of net cash provided by operating activities to Discretionary Cash Flow and Free Cash Flow for the three months ended June 30, 2025, March 31, 2025, and June 30, 2024, detailing adjustments for capital expenditures, changes in operating assets and liabilities, and other items - **Discretionary cash flow** is calculated by adjusting **net cash provided by operating activities** for **maintenance capital expenditures**, **severance**, **transaction expenses**, **changes in operating assets and liabilities**, and other items[43](index=43&type=chunk) - **Free cash flow** is further derived from **discretionary cash flow** by subtracting **growth** and **other capital expenditures** and adding **proceeds from asset sales**[43](index=43&type=chunk)

Group 1 - Kodiak Gas Services Inc. will replace NV5 Global Inc. in the S&P SmallCap 600 effective August 6, 2025 [1] - Acuren Corp. is acquiring NV5 Global in a deal expected to be completed soon pending final conditions [1] - The addition of Kodiak Gas Services and deletion of NV5 Global will take place prior to the opening of trading on the effective date [1] Group 2 - Kodiak Gas Services is classified under the Energy sector, while NV5 Global is classified under the Industrials sector [1]