Group 1 - S&P Dow Jones Indices has added Kodiak Gas Services Inc. (KGS) to the S&P SmallCap 600 Index [1]

Group 1: Market Overview - The U.S. equity markets are experiencing a downtrend due to President Trump's proposed tariffs on imported goods from 14 countries, including Japan and South Korea, set to take effect in August [1] - The sudden shift in tariff policy has increased market uncertainty and financial turmoil, prompting policymakers to take action to protect their economies [1] Group 2: Investment Strategies - Investors are turning to momentum stocks as a strategy to achieve sustained profits amid market volatility [2] - Momentum investing is based on the principle of "buying high and selling higher," capitalizing on established trends in stock prices [3] Group 3: Momentum Strategy Implementation - A screening strategy has been developed to identify momentum anomaly stocks, focusing on the top 50 stocks with the best percentage price change over the last 52 weeks [5] - The strategy also includes selecting stocks that are among the 10 worst performers over the past week to identify those experiencing a short-term pullback [6] - Stocks with a Zacks Rank 1 (Strong Buy) and a Momentum Style Score of B or better are prioritized for selection, indicating a higher probability of success [7] Group 4: Selected Stocks - Urban Outfitters, Inc. has seen a 63.6% increase in stock price over the past year but a 4.2% decline in the past week, with a Momentum Score of B [8] - Royal Gold, Inc. has experienced a 22% increase in stock price over the past year but a 9.8% decline in the past week, holding a Momentum Score of A [9] - Kodiak Gas Services has seen a 25.3% increase in stock price over the past year but a 3.8% decline in the past week, also with a Momentum Score of A [10]

Group 1 - The sale of approximately 3.2 million shares of Kodiak Gas Services, Inc. resulted in gross proceeds of around USD 116 million [1] - The sale was executed on May 12, 2025, under Rule 144 of the Securities Act of 1933, with J.P. Morgan Securities LLC acting as the broker [1] - Concurrently, Kodiak Gas Services repurchased approximately 278,000 shares from EQT for gross proceeds of about USD 10 million [1] Group 2 - Following these transactions, EQT now holds approximately 31.3 million shares of Kodiak Gas Services' common stock [1]

PART I [Item 1. Financial Statements (Unaudited)](index=6&type=section&id=Item%201.%20Financial%20Statements%20(Unaudited)) Presents unaudited condensed consolidated financial statements for Q1 2025, detailing balance sheets, operations, equity, and cash flows, with key notes on accounting policies and the CSI Compressco acquisition [Condensed Consolidated Balance Sheets](index=6&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) Total assets remained stable at **$4.436 billion** as of March 31, 2025, with a slight increase in liabilities and decrease in equity Condensed Consolidated Balance Sheet Highlights (in thousands) | Account | March 31, 2025 | December 31, 2024 | | :--- | :--- | :--- | | **Total current assets** | $387,078 | $383,661 | | **Property, plant and equipment, net** | $3,400,154 | $3,395,022 | | **Total assets** | **$4,436,122** | **$4,435,123** | | **Total current liabilities** | $329,869 | $319,369 | | **Long-term debt, net** | $2,588,329 | $2,581,909 | | **Total liabilities** | **$3,080,265** | **$3,061,516** | | **Total stockholders' equity** | **$1,355,857** | **$1,373,607** | [Condensed Consolidated Statements of Operations](index=7&type=section&id=Condensed%20Consolidated%20Statements%20of%20Operations) Total revenues rose **53.0%** to **$329.6 million** in Q1 2025, but net income remained flat at **$31.0 million** due to increased expenses and absence of derivative gains Statement of Operations Highlights (in thousands, except per share data) | Metric | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | **Total revenues** | $329,642 | $215,492 | | **Income from operations** | $89,186 | $60,158 | | **Interest expense** | $(47,224) | $(39,740) | | **Gain on derivatives** | $— | $19,757 | | **Net income** | $31,036 | $30,232 | | **Net income attributable to common shareholders** | $30,411 | $30,232 | | **Diluted EPS** | $0.33 | $0.39 | [Condensed Consolidated Statements of Stockholders' Equity](index=9&type=section&id=Condensed%20Consolidated%20Statements%20of%20Stockholders'%20Equity) Stockholders' equity decreased to **$1.356 billion** in Q1 2025, primarily due to **$37.0 million** in dividends and **$10.0 million** in share repurchases, partially offset by net income - Key activities affecting stockholders' equity in Q1 2025 included net income of **$31.0 million**, dividend payments of **$37.0 million**, and common share repurchases of **$10.0 million**[19](index=19&type=chunk) [Condensed Consolidated Statements of Cash Flows](index=10&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) Net cash from operations more than doubled to **$114.3 million** in Q1 2025, while investing and financing activities resulted in net cash outflows, leading to a **$2.8 million** decrease in cash Cash Flow Summary (in thousands) | Cash Flow Activity | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | **Net cash provided by operating activities** | $114,328 | $51,542 | | **Net cash used for investing activities** | $(68,177) | $(60,150) | | **Net cash provided by (used for) financing activities** | $(48,951) | $12,352 | | **Net (decrease) increase in cash** | $(2,800) | $3,744 | [Notes to Unaudited Condensed Consolidated Financial Statements](index=12&type=section&id=Notes%20to%20Unaudited%20Condensed%20Consolidated%20Financial%20Statements) Key notes detail the **$342.3 million** CSI Compressco acquisition, **$1.5 billion** in remaining performance obligations, a **$72.5 million** sales tax contingency, and **$10.0 million** in share repurchases - On April 1, 2024, the Company completed the acquisition of CSI Compressco LP for total consideration of **$342.3 million**, resulting in **$109.9 million** of goodwill[29](index=29&type=chunk)[30](index=30&type=chunk) - As of March 31, 2025, the company had **$1.5 billion** of remaining performance obligations related to its Contract Services segment, with **$631.0 million** expected to be recognized in the remainder of 2025[39](index=39&type=chunk) - The company accrued an additional **$1.6 million** for a sales tax contingency during the quarter, bringing the total accrued liability to **$72.5 million** as of March 31, 2025[85](index=85&type=chunk) - In March 2025, the company repurchased **270,000** shares of common stock for approximately **$10.0 million** under its share repurchase program[72](index=72&type=chunk) [Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations](index=29&type=section&id=Item%202.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management discusses Q1 2025 performance, highlighting **53%** revenue growth and **34.4%** fleet horsepower increase, driven by the CSI acquisition, alongside liquidity and non-GAAP measures [Operational Highlights](index=30&type=section&id=Operational%20Highlights) Operational capacity expanded significantly, with fleet horsepower increasing **34.4%** to **4.4 million HP** and revenue-generating horsepower growing **30.4%** Operational Data Comparison (at period end) | Metric | March 31, 2025 | March 31, 2024 | % Change | | :--- | :--- | :--- | :--- | | **Fleet horsepower** | 4,422,914 | 3,290,971 | 34.4% | | **Revenue-generating horsepower** | 4,284,103 | 3,285,592 | 30.4% | | **Fleet utilization** | 96.9% | 99.8% | (3.0%) | - The increase in horsepower was primarily attributable to the **1.2 million** horsepower acquired from the CSI Acquisition and organic growth through new compression unit purchases[107](index=107&type=chunk) [Financial Results of Operations](index=31&type=section&id=Financial%20Results%20of%20Operations) Total revenues surged **53.0%** to **$329.6 million** in Q1 2025, but net income remained flat at **$31.0 million** due to higher interest expense and asset sale losses Financial Results Summary (in thousands) | Metric | Q1 2025 | Q1 2024 | % Change | | :--- | :--- | :--- | :--- | | **Total revenues** | $329,642 | $215,492 | 53.0% | | **Income from operations** | $89,186 | $60,158 | 48.3% | | **Interest expense** | $(47,224) | $(39,740) | 18.8% | | **Net income** | $31,036 | $30,232 | 2.7% | - The decrease in gain on derivatives was due to the designation of the interest rate swap as a cash flow hedge effective January 1, 2025, causing fair value changes to be recorded in other comprehensive income instead of earnings[117](index=117&type=chunk) [Liquidity and Capital Resources](index=33&type=section&id=Liquidity%20and%20Capital%20Resources) Total liquidity stood at **$321.2 million** as of March 31, 2025, with Q1 2025 capital expenditures totaling **$94.7 million** and a **$0.45** per share dividend declared - As of March 31, 2025, the company had approximately **$321.2 million** of liquidity, consisting of **$2.0 million** in cash and **$319.3 million** available under its ABL Facility[119](index=119&type=chunk) Capital Expenditures (in millions) | Category | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | Growth Capital Expenditures | $56.0 | $52.2 | | Other Capital Expenditures | $22.3 | $7.2 | | Maintenance Capital Expenditures | $16.4 | $10.6 | - On April 23, 2025, the Board declared a cash dividend of **$0.45** per share for Q1 2025[125](index=125&type=chunk) [Non-GAAP Financial Measures](index=37&type=section&id=Non-GAAP%20Financial%20Measures) Non-GAAP measures show strong performance, with Adjusted EBITDA increasing to **$177.7 million** and Free Cash Flow rising to **$47.2 million** in Q1 2025 Adjusted EBITDA Reconciliation (in thousands) | Line Item | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | **Net income** | $31,036 | $30,232 | | Interest expense | 47,224 | 39,740 | | Income tax expense | 10,524 | 9,875 | | Depreciation and amortization | 70,529 | 46,944 | | Gain on derivatives | — | (19,757) | | Equity compensation expense | 6,978 | 2,848 | | Transaction expenses | 1,786 | 7,880 | | Loss on sale of assets | 9,211 | — | | **Adjusted EBITDA** | **$177,664** | **$117,762** | Discretionary and Free Cash Flow (in thousands) | Metric | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | **Net cash provided by operating activities** | $114,328 | $51,542 | | **Discretionary cash flow** | $116,084 | $71,925 | | **Free cash flow** | $47,219 | $12,524 | [Item 3. Quantitative and Qualitative Disclosures About Market Risk](index=40&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) The company's market risks include interest rate, counterparty, concentration, and commodity price risks, with a **1.0%** interest rate increase potentially raising annual expense by **$4.8 million** - The company's primary interest rate risk is from its ABL Facility. A **1.0%** increase in the average interest rate would have resulted in an estimated **$4.8 million** increase in ABL-related interest expense for Q1 2025[162](index=162&type=chunk)[163](index=163&type=chunk) - For Q1 2025, the company's four largest customers accounted for approximately **31%** of its recurring revenues[167](index=167&type=chunk) - The company has no direct exposure to commodity prices as it does not take title to natural gas or oil, but demand for its services is dependent on continued production, which is influenced by commodity prices[168](index=168&type=chunk) [Item 4. Controls and Procedures](index=42&type=section&id=Item%204.%20Controls%20and%20Procedures) Management, including CEO and CFO, concluded disclosure controls and procedures were effective as of March 31, 2025, with no material changes to internal controls - Management, including the CEO and CFO, concluded that disclosure controls and procedures were effective as of March 31, 2025[169](index=169&type=chunk) - No changes occurred during the quarter ended March 31, 2025, that have materially affected, or are reasonably likely to materially affect, the company's internal control over financial reporting[170](index=170&type=chunk) PART II [Item 1. Legal Proceedings](index=43&type=section&id=Item%201.%20Legal%20Proceedings) The company does not expect ordinary course legal matters to materially affect its financial position, referencing the sales tax contingency - Management does not expect the resolution of ordinary course legal matters to have a material adverse effect on the company's financial statements[173](index=173&type=chunk) [Item 1A. Risk Factors](index=43&type=section&id=Item%201A.%20Risk%20Factors) No material changes to previously disclosed risk factors from the Annual Report on Form 10-K for the fiscal year ended December 31, 2024 - There have been no material changes to the risk factors previously disclosed in the Annual Report on Form 10-K for the fiscal year ended December 31, 2024[174](index=174&type=chunk) [Item 2. Unregistered Sales of Equity Securities and Use of Proceeds](index=43&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) In Q1 2025, the company repurchased **270,000** common shares for **$10.0 million**, with **$25.0 million** remaining under the repurchase program Share Repurchases in Q1 2025 | Period | Total Shares Purchased | Average Price Paid Per Share | Maximum Value Remaining (in thousands) | | :--- | :--- | :--- | :--- | | March 1-31, 2025 | 270,000 | $36.87 | $25,040 | [Item 3. Defaults Upon Senior Securities](index=43&type=section&id=Item%203.%20Defaults%20Upon%20Senior%20Securities) The company reported no defaults upon its senior securities during the period - None[178](index=178&type=chunk) [Item 5. Other Information](index=43&type=section&id=Item%205.%20Other%20Information) No directors or executive officers adopted or terminated Rule 10b5-1 trading arrangements during Q1 2025 - During Q1 2025, no directors or officers adopted or terminated a Rule 10b5-1 trading arrangement[180](index=180&type=chunk) [Item 6. Exhibits](index=44&type=section&id=Item%206.%20Exhibits) This section lists all exhibits filed with the Form 10-Q, including corporate governance documents, agreements, and CEO/CFO certifications - The report includes a list of exhibits filed, such as the Certificate of Incorporation, Bylaws, various agreements, and CEO/CFO certifications[181](index=181&type=chunk)

Financial Data and Key Metrics Changes - Total revenues for Q1 2025 were $330 million, up approximately 7% sequentially [22] - Adjusted EBITDA for the quarter was just under $178 million, up 5% from Q4 2024 [24] - The company achieved an all-time low leverage of 3.7 times [14][29] - A quarterly dividend of $0.45 per share was announced, representing a 10% increase over the prior quarter [14] Business Line Data and Key Metrics Changes - In the Contract Services segment, monthly dollar revenue generating horsepower increased from $21.97 to $22.48 [22] - Adjusted gross margin percentage for Contract Services increased to approximately 68%, up a full percentage point from the previous quarter [22] - The Other Services segment saw revenues of $40.7 million, a 39% sequential increase [24] Market Data and Key Metrics Changes - The Permian Basin's oil production grew by about 2% in 2024, while marketed natural gas production grew by 12% [7] - The EIA projects a meaningful increase in Permian natural gas production in 2025 [8] Company Strategy and Development Direction - The company is focused on expanding its large horsepower compression services, which are critical for maintaining production volumes [6][10] - Kodiak is committed to a strategy of recontracting existing contracts and increasing operational efficiency [20][30] - The company plans to continue investing in new unit growth and technology advancements, including industrial artificial intelligence [27][56] Management's Comments on Operating Environment and Future Outlook - Management remains bullish on the outlook for U.S. natural gas growth despite recent volatility in oil prices and economic concerns [6][20] - The company believes that the fundamentals for natural gas compression remain strong, with significant demand expected from LNG exports and power generation [10][12] - Management expressed confidence in achieving their 2025 guidance and maintaining stable cash flows [30][31] Other Important Information - The company has successfully redeployed previously idle assets and divested non-core small horsepower units [14] - Kodiak's fleet utilization remains high at 97%, with 99% utilization of large horsepower equipment [10] Q&A Session Summary Question: What are the remaining unknowns for 2025 that might influence results? - Management highlighted recontracting strategy and expense management as key factors influencing results [37][38] Question: Is there a difference in outsourcing demand between midstream and upstream customers? - Management noted that both upstream and midstream customers may prefer outsourcing to reduce capital expenditures [40] Question: What macro backdrop is assumed for the growth outlook? - Management expressed confidence in continued gas production growth in the Permian Basin, even in a flat oil price environment [46] Question: How is the company balancing share buybacks with leverage targets? - Management confirmed a focus on achieving a leverage target of 3.5 times while also considering share repurchases [48][50] Question: What cost management strategies have contributed to higher margins? - Management mentioned the implementation of AI for condition-based maintenance and repositioning the fleet as key strategies [52][54] Question: How does the company view the labor market challenges in the Permian? - Management emphasized the importance of training and development to address labor challenges [57] Question: How is the company positioned for potential M&A opportunities? - Management indicated openness to opportunistic bolt-on acquisitions, especially if asset valuations decline [71][72] Question: How has customer behavior evolved in today's environment? - Management noted that customers are more consolidated with better balance sheets, making them more resilient in downturns [78] Question: What factors could lead to a loss of pricing power in the industry? - Management stated that a significant reduction in utilization would be necessary for pricing softness to occur [80][82]

Financial Data and Key Metrics Changes - Kodiak set new records in total revenue, adjusted EBITDA, discretionary cash flow, and achieved an all-time low leverage of 3.7 times in Q1 2025 [15][20] - Total revenues for Q1 were $330 million, up approximately 7% sequentially, with adjusted EBITDA just under $178 million, up 5% from Q4 [22][24] - The adjusted gross margin percentage for contract services increased to approximately 68%, reflecting higher average prices and operational efficiencies [22][24] Business Line Data and Key Metrics Changes - In the Contract Services segment, monthly dollar revenue generating horsepower increased from $21.97 to $22.48, indicating strength in the large horsepower market [22] - The Other Services segment saw revenues increase to $40.7 million, a 39% sequential increase, supported by project completions [24] - Fleet utilization reached 97%, with large horsepower equipment utilization at 99%, reflecting strong demand [10][11] Market Data and Key Metrics Changes - The Permian Basin continues to play a significant role in U.S. gas supply growth, with natural gas production projected to increase despite flat oil production [8][9] - LNG exports are expected to double by the end of the decade, driving demand for natural gas and compression services [12][13] - The company noted that the U.S. oil and gas industry is largely domestic, which helps mitigate tariff impacts on operations [17][18] Company Strategy and Development Direction - Kodiak's strategy focuses on large horsepower contract compression services, which are resilient to commodity price fluctuations [6][21] - The company is committed to increasing its fleet and enhancing operational efficiencies while maintaining a strong balance sheet [20][29] - Kodiak is exploring potential bolt-on acquisitions as opportunities arise, particularly in light of changing asset valuations [70][71] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the long-term growth outlook for U.S. natural gas, driven by LNG exports and power generation demand [11][14] - The company remains optimistic about its ability to navigate economic uncertainties and achieve its growth targets [20][32] - Management highlighted the importance of recontracting efforts and the stability provided by fixed revenue, multiyear contracts [10][16] Other Important Information - Kodiak announced a quarterly dividend of $0.45 per share, a 10% increase over the prior quarter, and repurchased approximately $10 million in stock [15][20] - The company is focused on training and developing its workforce to address labor market challenges in the Permian Basin [57] Q&A Session Summary Question: What are the remaining unknowns for 2025 that might influence results? - Management indicated that recontracting strategies and expense management are key factors influencing guidance for 2025 [36][37] Question: Is there a difference in outsourcing demand between midstream and upstream customers? - Management noted that both upstream and midstream customers may prefer to outsource compression to reduce capital expenditures [38][39] Question: What macro backdrop is assumed in the growth outlook? - Management expressed confidence in continued gas production growth in the Permian Basin, even in a flat oil price environment [44][45] Question: How is the company balancing share buybacks with leverage targets? - Management confirmed a focus on achieving a leverage target of 3.5 times while also considering share repurchases [46][48] Question: What actions are being taken to improve margins? - Management highlighted the implementation of AI and machine learning for maintenance efficiencies and repositioning the fleet to enhance profitability [51][54] Question: How is the company addressing labor market challenges? - Management emphasized the importance of training and development to alleviate labor issues in the Permian Basin [57] Question: How do current lead times for new equipment look? - Management reported that lead times for new equipment remain around a year, indicating a tight supply chain [86][87] Question: How much of the revenue increase was due to organic pricing versus mix shift? - Management indicated that a combination of churn and new horsepower growth contributed to the revenue increase, with pricing uplift from recontracting efforts [88][90]

Group 1 - Kodiak Gas Services reported quarterly earnings of $0.42 per share, exceeding the Zacks Consensus Estimate of $0.39 per share, and showing an increase from $0.39 per share a year ago, representing an earnings surprise of 7.69% [1] - The company achieved revenues of $329.64 million for the quarter ended March 2025, surpassing the Zacks Consensus Estimate by 1.06%, and up from $215.49 million year-over-year [2] - Kodiak Gas has surpassed consensus EPS estimates three times over the last four quarters and topped consensus revenue estimates two times in the same period [2] Group 2 - The stock has underperformed, losing about 16.2% since the beginning of the year, compared to the S&P 500's decline of 4.7% [3] - The current consensus EPS estimate for the upcoming quarter is $0.40 on revenues of $336.17 million, and for the current fiscal year, it is $2.09 on revenues of $1.35 billion [7] - The Zacks Industry Rank for Oil and Gas - Mechanical and Equipment is currently in the bottom 15% of over 250 Zacks industries, indicating potential challenges for stock performance [8] Group 3 - The estimate revisions trend for Kodiak Gas is currently favorable, leading to a Zacks Rank 2 (Buy) for the stock, suggesting it is expected to outperform the market in the near future [6] - Empirical research indicates a strong correlation between near-term stock movements and trends in earnings estimate revisions, which can be tracked by investors [5] - The outlook for the industry can significantly impact stock performance, with the top 50% of Zacks-ranked industries outperforming the bottom 50% by more than 2 to 1 [8]

Financial Performance - Net income attributable to common shareholders for Q1 2025 was $30.4 million, up from $19.1 million in Q4 2024 and $30.2 million in Q1 2024[2]. - Total revenues for Q1 2025 were $329.6 million, a 6.5% increase from $309.5 million in Q4 2024 and a 53.0% increase from $215.5 million in Q1 2024[11]. - Net income attributable to common shareholders for Q1 2025 was $30,411,000, compared to $19,083,000 in Q1 2024, representing a 59.3% increase[30]. - Earnings per share attributable to common shareholders increased to $0.34 in Q1 2025 from $0.21 in Q1 2024, reflecting a 61.9% growth[30]. - Net income for the three months ended March 31, 2025, was $31,036,000, compared to $19,600,000 for the same period in 2024, reflecting a significant increase[36]. Revenue Segments - Contract Services segment revenue was $289.0 million, a 3.1% sequential increase, with an adjusted gross margin percentage of 67.7%[8][11]. - Other Services segment revenue surged by 38.8% sequentially to $40.7 million, with an adjusted gross margin percentage of 13.4%[9][11]. - Total revenues for the Contract Services segment reached $288,956,000, compared to $280,211,000 in the previous year, indicating a growth of 2.5%[38]. - The Other Services segment saw total revenues increase to $40,686,000, up from $29,308,000 year-over-year, reflecting a growth of 38.5%[39]. EBITDA and Margins - Record quarterly adjusted EBITDA reached $177.7 million, with an adjusted EBITDA percentage of 53.9%[7][11]. - Adjusted EBITDA for the same period was $177,664,000, up from $169,072,000 year-over-year, with an adjusted EBITDA margin of 53.9%[36]. - Adjusted gross margin for the Contract Services segment was $195,721,000, with an adjusted gross margin percentage of 67.7%, compared to 66.7% in the prior year[38]. - Gross margin for the Contract Services segment improved to $125,192,000, with a gross margin percentage of 43.3%, up from 41.6% in the prior year[38]. Cash Flow and Expenses - Operating expenses for Q1 2025 totaled $240,456,000, slightly down from $240,473,000 in Q1 2024[30]. - Net cash provided by operating activities for Q1 2025 was $114,328,000, significantly higher than $51,542,000 in Q1 2024[34]. - Discretionary cash flow for the three months ended March 31, 2025, was $116,084,000, compared to $107,690,000 in the same period last year[41]. - Free cash flow decreased to $47,219,000 from $56,657,000 year-over-year, primarily due to increased capital expenditures[41]. - The company reported a net cash provided by operating activities of $114,328,000, slightly down from $118,485,000 in the previous year[41]. Debt and Capital Expenditures - Total debt outstanding was $2.6 billion as of March 31, 2025, with a credit agreement leverage ratio of 3.7x[10]. - Long-term debt as of March 31, 2025, was $2,588,329,000, up from $2,581,909,000 at the end of 2024[32]. - Growth capital expenditures for 2025 are projected between $180 million and $205 million, with total growth and other capital expenditures expected to be between $240 million and $270 million[17]. Shareholder Returns - The company repurchased approximately $10 million of common stock at an average price of $36.87 and increased the quarterly dividend by 10% to $0.45 per share[7][6]. Strategic Focus - The company plans to continue focusing on customer retention and growth strategies to enhance market position and financial results[27].

Core Viewpoint - Kodiak Gas Services (KGS) has seen an 8.8% increase in share price over the past four weeks, closing at $34.16, with a mean price target of $43.73 indicating a potential upside of 28% [1] Price Targets - The average of 11 short-term price targets ranges from a low of $35 to a high of $51, with a standard deviation of $4.78, suggesting a potential increase of 2.5% to 49.3% from the current price [2] - A low standard deviation indicates a greater agreement among analysts regarding price movement, which can be a useful metric for investors [2][9] Analyst Sentiment - Analysts are optimistic about KGS's earnings prospects, as indicated by upward revisions in earnings estimates, which have shown a strong correlation with stock price movements [4][11] - Over the last 30 days, the Zacks Consensus Estimate for the current year has increased by 0.3%, with one estimate moving higher and no negative revisions [12] Zacks Rank - KGS holds a Zacks Rank 2 (Buy), placing it in the top 20% of over 4,000 ranked stocks based on earnings estimate factors, indicating strong potential for upside [13]

Core Viewpoint - Wall Street anticipates flat earnings for Kodiak Gas Services (KGS) in the upcoming quarter, with earnings expected to be $0.39 per share, unchanged from the previous year, while revenues are projected to increase by 51.4% to $326.16 million [1][3]. Earnings Expectations - The stock price may rise if the actual earnings exceed expectations in the earnings report scheduled for May 7, while a miss could lead to a decline [2]. - The consensus EPS estimate has remained unchanged over the last 30 days, indicating a stable outlook from analysts [4]. Earnings Surprise Prediction - The Zacks Earnings ESP model suggests that the Most Accurate Estimate for Kodiak Gas is lower than the consensus estimate, resulting in an Earnings ESP of -14.29%, indicating a bearish sentiment among analysts [10]. - The current Zacks Rank for Kodiak Gas is 3, which complicates the prediction of an earnings beat [11]. Historical Performance - In the last reported quarter, Kodiak Gas had an earnings surprise of +3.85%, reporting $0.27 per share against an expectation of $0.26 [12]. - Over the past four quarters, the company has beaten consensus EPS estimates three times [13]. Conclusion - Kodiak Gas does not appear to be a strong candidate for an earnings beat based on current estimates and rankings, but investors should consider other factors before making investment decisions [16].