Revenue and Growth - Total revenues for the three months ended September 30, 2024, were $324.647 million, a 40.5% increase from $230.983 million in the same period of 2023[16] - Contract services revenue increased to $284.313 million for the three months ended September 30, 2024, compared to $186.673 million in the prior year, representing a 52.3% growth[16] - For the nine months ended September 30, 2024, the company's revenue increased to $946.9 million, up 3.8% from $912.3 million in the same period in 2023[36] - Total revenues rose by $93.7 million (40.6%) to $324.6 million for the three months ended September 30, 2024, compared to $231.0 million in the prior year[162] Expenses and Losses - Operating expenses for the three months ended September 30, 2024, totaled $258.568 million, up from $170.025 million, reflecting a 52.0% increase[16] - Interest expense for the three months ended September 30, 2024, was $(53.991) million, compared to $(39.710) million in the same period of 2023, indicating a 36.0% increase[16] - Total other expenses, net for the three months ended September 30, 2024, were $(74.474) million, compared to $(31.288) million in the same period of 2023, reflecting a significant increase in expenses[16] - Net loss attributable to common shareholders for the three months ended September 30, 2024, was $(5.648) million, compared to net income of $21.766 million in the same period of 2023[16] - Basic earnings per share for the three months ended September 30, 2024, was $(0.07), down from $0.28 in the prior year[16] - Selling, general and administrative expenses surged by $15.9 million (80.8%) to $35.5 million for the three months ended September 30, 2024, compared to $19.6 million in the prior year[170] Assets and Equity - As of June 30, 2023, total stockholders' equity was $192,875,000, reflecting a net income of $17,517,000 for the quarter[18] - By September 30, 2023, total stockholders' equity increased to $1,171,792,000, with a net income of $21,766,000 for the quarter[18] - As of September 30, 2024, the Company's total assets increased to $4.5 billion compared to $3.2 billion as of September 30, 2023[138] - The weighted average shares of common stock outstanding for the three months ended September 30, 2024, were 84,292,083, compared to 76,731,868 in the same period of 2023, an increase of 9.9%[16] Cash Flow and Debt - Cash flows from operating activities for the nine months ended September 30, 2024, were $209.502 million, slightly up from $203.699 million in the prior year[21] - Borrowings on debt instruments amounted to $2.297 billion, significantly higher than $756.418 million in the prior year, indicating a substantial increase in financing activities[21] - Total long-term debt stood at $2.6 billion as of September 30, 2024, with $1.9 billion due in 2028 and $750 million due in 2029[198] - The Company issued $750 million in 2029 Senior Notes with a 7.25% interest rate on February 2, 2024, which are not subject to mandatory redemption or sinking fund requirements[76] Acquisitions and Impairments - The acquisition of CSI Compressco LP was completed on April 1, 2024, for a total consideration of $342.3 million, which included the issuance of equity shares[24] - The company reported a long-lived asset impairment of $9.921 million for the three months ended September 30, 2024[16] - Goodwill acquired from the CSI Acquisition was recorded at $107.979 million, reflecting strategic benefits expected from the merger[31] - Long-lived asset impairment recorded was $9.9 million for the nine months ended September 30, 2024, with no impairment recorded in the same period of 2023[184] Capital Expenditures - Capital expenditures for the three months ended September 30, 2024, were $86.5 million, an increase from $51.5 million in the same period of 2023[138] - Growth capital expenditures were $214.9 million for the nine months ended September 30, 2024, up from $124.0 million in the same period of 2023[196] - Maintenance capital expenditures increased to $51.3 million for the nine months ended September 30, 2024, compared to $28.1 million in the prior year[196] Tax and Compliance - The Company recorded an income tax benefit of $2.2 million for the three months ended September 30, 2024, compared to an expense of $7.9 million in the same period of 2023[126] - The effective tax rate for the three months ended September 30, 2024, was approximately 26.0%, slightly down from 26.6% in the same period of 2023[126] - The Company was in compliance with all covenants under the ABL Facility and 2029 Senior Notes as of September 30, 2024[75][78] Stock and Dividends - The Company declared a cash dividend of $0.41 per share for the quarterly period ended September 30, 2024, payable on November 8, 2024[116] - The Company repurchased 1,000,000 shares of common stock at $25.00 per share for a total of $25 million on September 11, 2024[99] - A total of 6,375,000 shares of common stock have been reserved for issuance under the Omnibus Incentive Plan, with 2,394,649 shares granted as of September 30, 2024[105]

Company Performance - Kodiak Gas Services (KGS) reported quarterly earnings of $0.41 per share, exceeding the Zacks Consensus Estimate of $0.26 per share, and up from $0.28 per share a year ago [1] - The quarterly report reflects an earnings surprise of 57.69%, following a previous quarter where earnings were $0.23 per share against an expectation of $0.52, resulting in a surprise of -55.77% [2] - Revenues for the quarter ended September 2024 were $324.65 million, surpassing the Zacks Consensus Estimate by 1.14%, and up from $230.98 million year-over-year [3] Stock Performance - Kodiak Gas shares have increased approximately 61.8% since the beginning of the year, compared to a 21.2% gain in the S&P 500 [4] - The current consensus EPS estimate for the upcoming quarter is $0.28 on revenues of $326.42 million, and for the current fiscal year, it is $0.99 on revenues of $1.17 billion [8] Industry Outlook - The Oil and Gas - Mechanical and Equipment industry, to which Kodiak Gas belongs, is currently ranked in the bottom 41% of over 250 Zacks industries, indicating potential challenges ahead [9] - The company has a favorable estimate revisions trend, currently holding a Zacks Rank 1 (Strong Buy), suggesting expected outperformance in the near future [7]

Financial Performance - Contract Services segment revenue reached $284.3 million, a 52% increase from $186.7 million in Q3 2023[5] - Record quarterly Adjusted EBITDA of $168.4 million, compared to $110.1 million in Q3 2023[4] - Free Cash Flow for the quarter was $52.5 million, significantly up from $7.4 million in Q3 2023[2] - Total revenues for the three months ended September 30, 2024, were $324.647 million, an increase of 4.8% from $309.653 million in the previous quarter and a significant increase from $230.983 million in the same quarter last year[19] - Adjusted EBITDA for the three months ended September 30, 2024, was $168,374 thousand, with an adjusted EBITDA percentage of 51.9%, compared to $110,067 thousand and 47.7% for the same period in 2023[24] - Adjusted EBITDA for the three months ended September 30, 2024, was $168.4 million, an increase of 53.0% compared to $110.1 million in the same period last year[26] - Discretionary Cash Flow for the three months ended September 30, 2024, was $103.0 million, up 70.5% from $63.0 million in the same period last year[31] - The company reported a net loss of $6.2 million for the three months ended September 30, 2024, compared to a net income of $21.8 million in the same period last year[31] Debt and Equity - Total debt outstanding as of September 30, 2024, was $2.6 billion, with a credit agreement leverage ratio of 3.9x[6] - Long-term debt increased to $2,595,398 thousand as of September 30, 2024, up from $1,791,460 thousand as of December 31, 2023, indicating a rise of 45.0%[21] - Total stockholders' equity increased to $1,396,392 thousand as of September 30, 2024, from $1,142,653 thousand as of December 31, 2023, reflecting a growth of 22.2%[21] Operational Metrics - Fleet utilization improved to 96.4%, a sequential increase of 2.1%[2] - Contract Services Adjusted Gross Margin Percentage was 66.0%, up from 64.9% in Q3 2023[7] - The gross margin percentage for contract services was 40.2% for the three months ended September 30, 2024, compared to 38.9% in the previous quarter[28] - Adjusted Gross Margin for contract services was $187.7 million for the three months ended September 30, 2024, reflecting a 54.9% increase from $121.2 million in the same period last year[28] Capital Expenditures - Maintenance capital expenditures for the quarter were $21.6 million, while growth capital expenditures totaled $65.1 million[7] - Total capital expenditures for growth were $65.1 million for the three months ended September 30, 2024, compared to $90.4 million in the previous quarter[31] Future Outlook - Full-year 2024 Adjusted EBITDA guidance raised to a range of $600 million to $610 million, reflecting a $10 million increase at the low end[2] - Early outlook for 2025 Adjusted EBITDA is projected between $675 million and $725 million[3] - The company anticipates future revenue growth and earnings, particularly due to the CSI Acquisition, although specific projections were not detailed in the extracted content[15] Risks and Challenges - The company highlighted potential risks including demand reduction for natural gas and oil, competitive pressures, and economic conditions that could impact future performance[16] Cash Flow and Assets - Cash and cash equivalents increased to $7,434 thousand as of September 30, 2024, from $5,562 thousand at the end of 2023, marking a rise of 33.6%[23] - Accounts receivable, net rose significantly to $280,436 thousand as of September 30, 2024, compared to $113,192 thousand as of December 31, 2023, an increase of 147.1%[21] - The company reported cash flows from operating activities of $121 thousand for the nine months ended September 30, 2024, compared to a net cash used in investing activities of $(239,319) thousand[23] Other Financial Metrics - Operating expenses totaled $258.568 million for the three months ended September 30, 2024, compared to $255.486 million in the previous quarter and $170.025 million in the same quarter last year[19] - Basic net earnings per share for the three months ended September 30, 2024, were $(0.07), compared to $0.07 in the previous quarter and $0.28 in the same quarter last year[19] - The company experienced a loss on extinguishment of debt, which was not specified in the current quarter but was $6.757 million in the same quarter last year[19] - The company reported a loss on extinguishment of debt of $4,359 thousand for the nine months ended September 30, 2023[23] - Severance expenses related to the CSI Acquisition were $2.2 million for the three months ended September 30, 2024, compared to $9.0 million in the previous quarter[31] - The change in operating assets and liabilities contributed $84.5 million for the three months ended September 30, 2024, compared to a negative contribution of $32.4 million in the previous quarter[33]

Core Viewpoint - Kodiak Gas Services (KGS) is expected to report a year-over-year decline in earnings despite higher revenues for the quarter ended September 2024, with the consensus outlook being crucial for assessing the company's earnings picture [1] Earnings Expectations - The consensus EPS estimate for Kodiak Gas is $0.26 per share, reflecting a year-over-year decrease of 7.1% [3] - Revenues are anticipated to reach $321.01 million, representing a 39% increase from the same quarter last year [3] Estimate Revisions - Over the last 30 days, the consensus EPS estimate has been revised down by 1.75%, indicating a reassessment by analysts [4] - The Most Accurate Estimate for Kodiak Gas matches the Zacks Consensus Estimate, resulting in an Earnings ESP of 0% [10] Earnings Surprise Prediction - The Zacks Earnings ESP model suggests that a positive or negative reading indicates the likely deviation of actual earnings from the consensus estimate, with positive readings being more predictive of earnings beats [7][8] - Kodiak Gas currently holds a Zacks Rank of 2 (Buy), but the combination of a 0% Earnings ESP makes it challenging to predict an earnings beat [10] Historical Performance - In the last reported quarter, Kodiak Gas was expected to post earnings of $0.52 per share but only achieved $0.23, resulting in a surprise of -55.77% [11] - Over the past four quarters, the company has beaten consensus EPS estimates two times [12] Market Reaction - The stock price may increase if the upcoming earnings report exceeds expectations, while a miss could lead to a decline [2] - Other factors beyond earnings results may also influence stock movement, indicating that an earnings beat does not guarantee a price increase [13][15]

Core Insights - Kodiak Gas Services experienced a challenging quarter, with stock prices dropping nearly 9% following a disappointing earnings report [1] Financial Performance - Revenue for the second quarter increased by 52% year-over-year, reaching nearly $310 million, significantly surpassing the average analyst estimate of $223 million [2] - Net income fell sharply by 62%, amounting to $6.7 million, or $0.06 per share, which was below the consensus estimate of $0.34 per share [2] Strategic Developments - The company highlighted positive developments, including the completion of the acquisition of CSI Compressco, which formed the largest contract compression fleet in the industry [3] - Kodiak has raised its full-year guidance for non-GAAP (adjusted) EBITDA to a range of $590 million to $610 million for 2024, up from a previous range of $580 million to $610 million [3]

Core Viewpoint - The article emphasizes the potential of lesser-known stocks as investment opportunities, suggesting that they can significantly impact a portfolio if their financials are strong and analysts are optimistic about them [1]. Group 1: Rocket Labs USA (RKLB) - Rocket Labs became the first private company from the southern hemisphere to reach space in 2017 and has a current valuation of $2 billion with over 40 space launches completed [3]. - For the latest quarter, Rocket Labs reported revenue of $92.77 million, a 69% year-over-year increase, although slightly below the estimate of $94.99 million [4]. - The company expects revenue between $105 million and $110 million for the second quarter of 2024, and its loss of $0.09 per share was better than the estimated loss of $0.11 per share [5]. - Rocket Labs achieved a gross profit of $24.17 million, with a gross margin increase to 26% from 12% year-over-year [5]. - MarketWatch has an average Buy recommendation for RKLB, with 10 Buy ratings and 1 Hold rating [5]. Group 2: Kodiak Gas Services (KGS) - Kodiak Gas Services provides natural gas compression services for the oil and gas industry and had a lackluster market reception upon its stock market debut last June [9]. - The company reported revenue of $215.5 million this year, a 13% increase from the first quarter of 2023, and a net income of $30.2 million, improving from a $12.3 million loss in the same quarter last year [10]. - KGS shareholders can expect a cash dividend of $0.38 per share, totaling $1.52 per share for the year [10]. - As of May 28, KGS stock has an average Buy recommendation, with seven Buy ratings and one Hold rating [9]. Group 3: Procore Technologies (PCOR) - Procore Technologies develops software for construction companies, aiming to streamline construction processes [12]. - The company reported revenue of $269 million in the first quarter, a 26% increase year-over-year, and projects revenue of $274 to $276 million for the second quarter, indicating a potential 20% plus year-over-year jump [13]. - Procore's free cash inflow doubled to $58 million in the first quarter of 2024, up from $29 million in the previous quarter [14]. - Analysts are bullish on PCOR stock, with 12 Buy ratings and no Sell ratings on MarketWatch [14].

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, DC 20549 ____________________ FORM 10-Q (Mark One) x QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended March 31, 2024 OR o TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from _____________ to _____________ Commission File Number: 001-41732 ____________________ Kodiak Gas Services, Inc. (Exact Na ...

NEWS RELEASE Contacts: Kodiak Gas Services, Inc. Graham Sones, VP – Investor Relations ir@kodiakgas.com Dennard Lascar Investor Relations Ken Dennard / Rick Black KGS@DennardLascar.com "With the closing of the CSI Compressco acquisition, Kodiak now has the largest contract compression fleet in the industry and a broadened suite of offerings to help our customers meet their compression infrastructure needs. We're pleased to announce revised (1) Adjusted EBITDA and Discretionary Cash Flow are Non-GAAP Financi ...

THE WOODLANDS, Texas, May 2, 2024 /PRNewswire/ -- Kodiak Gas Services, Inc. (NYSE: KGS), ("Kodiak" or the "Company"), a leading provider of critical energy infrastructure and contract compression services, today announced that its board of directors has declared a cash dividend of $0.38 per share of common stock for the first quarter of 2024 (the "Common Stock Dividend"). This Common Stock Dividend will be paid on May 20, 2024 to all stockholders of record as of the close of business on May 13, 2024. In con ...

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-K (Mark One) x ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended December 31, 2023 OR o TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from ____________ to ____________ Commission file number 001-04321 Kodiak Gas Services, Inc. (Exact name of registrant as specified in its charter) (S ...