Kodiak Gas Services(KGS) - 2024 Q3 - Quarterly Results

Financial Performance - Contract Services segment revenue reached $284.3 million, a 52$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$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$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$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$280,436 thousand as of September 30, 2024, compared to $113,192 thousand as of December 31, 2023, an increase of 147.1$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]