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Kodiak Gas Services, Inc. (NYSE: KGS) is one of the largest providers of contract compression services in the United States. The company operates through two primary segments: Compression Operations and Other Services. In the Compression Operations segment, Kodiak runs both company-owned and customer-owned infrastructure under fixed-revenue contracts, facilitating the production, gathering, and transportation of natural gas and oil. This segment includes a fleet generating over 3.2 million horsepower, serving clients in high-volume gas gathering systems, processing facilities, multi-well gas lift applications, and natural gas transmission systems. The Other Services segment includes comprehensive contract services such as station construction, maintenance, overhaul, and other ancillary offerings.
Recently, Kodiak has achieved several significant milestones. In February 2024, the SEC declared effective Kodiak's registration statement related to its merger with CSI Compressco LP, marking a pivotal step towards creating the largest contract compression fleet in the industry. The merger, expected to close in the second quarter of 2024, aims to enhance service offerings and operational scale.
Financially, Kodiak reported strong performance in 2023, achieving record annual revenue and Adjusted EBITDA. The company’s focus on large horsepower compression infrastructure, particularly in the Permian Basin, has driven growth, with revenues from Compression Operations increasing by 12.3% to $735.6 million in 2023. This segment also saw an improvement in gross margin by 16% to $295.6 million. The Other Services segment more than doubled its revenue from the previous year, finishing 2023 with $114.8 million.
For 2024, Kodiak anticipates continued strong demand for its services, buoyed by the growing need for natural gas infrastructure to support LNG export projects. The company is fully contracted for its new unit deliveries for 2024 and is actively discussing future needs with its customers for 2025. With a committed strategy to maintain the safest and most sustainable contract compression fleet, Kodiak continues to prioritize delivering high-quality service and mechanical availability to its customers.
Further, Kodiak's financial health remains robust, with total debt at $1.8 billion as of December 2023. The company successfully issued $750 million in senior unsecured notes due 2029, primarily to reduce existing ABL Facility borrowings. Post-merger, Kodiak's liquidity remains strong with plans to utilize its ABL Facility to manage CSI Compressco's outstanding debts.
For investors and stakeholders, Kodiak’s focus on disciplined capital allocation, including growth in its compression fleet and attractive returns through dividends, underscores its commitment to long-term value creation.
Kodiak Gas Services (NYSE: KGS), a leading provider of critical energy infrastructure and contract compression services, has announced its schedule for the release of second quarter 2024 financial results. The company will release its earnings report on Monday, August 12, 2024 after market close. A conference call to discuss the results is scheduled for Tuesday, August 13, 2024, at 11:00 a.m. Eastern Time (10:00 a.m. Central Time).
Investors can participate in the call by dialing 877-407-4012 or accessing the webcast at https://ir.kodiakgas.com/news-events/ir-calendar. A replay of the call will be available until August 27, 2024, by dialing 877-660-6853 with access code 13747895. The webcast replay will be accessible on the company's website for 90 days.
Kodiak Gas Services, Inc. (NYSE: KGS) reported strong Q1 2024 results with total revenues of $215.5 million, a net income of $30.2 million, and record Adjusted EBITDA of $117.8 million. The company increased its full-year 2024 guidance, raised its Adjusted EBITDA range to $580-$610 million, and expects Discretionary Cash Flow of $360-$390 million. Kodiak completed the acquisition of CSI, expanding its compression fleet, and focusing on growth and capital allocation strategy.
Kodiak Gas Services, Inc. (NYSE: KGS) has declared a quarterly cash dividend of $0.38 per share of common stock for the first quarter of 2024. The dividend will be paid on May 20, 2024, to stockholders of record as of May 13, 2024. Additionally, Kodiak Services, , a subsidiary of Kodiak, has declared a distribution of $0.38 per unit for the first quarter of 2024, payable on May 20, 2024, to unitholders of record as of May 16, 2024.
TETRA Technologies, Inc. announced first quarter 2024 financial results with a revenue increase of 3% year-over-year to $151 million. Net income was $915,000 with Adjusted EBITDA up 11% to $22.8 million. The company refinanced its term loan with a delayed draw feature and extended maturity to 2030. Completion Fluids & Products business showed strong growth while Water & Flowback Services faced challenges. TETRA remains optimistic about strategic initiatives and outlook for 2024.
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