Kodiak Gas Services, Inc.
- Open
- 64.66
- Day high
- 64.72
- Day low
- 63.40
- Prev close
- 65.94
- Volume
- 105K
- Mkt cap
- $6.5B
- P/E (TTM)
- 83.6
- EPS (TTM)
- $0.77
- P/B
- 5.5
- P/S
- 4.9
- Yield
- 2.95%
- Per share
- $1.92
- ▼Insiders net selling -$921K over the last 3 months (0 open-market buys, 5 sales)
- 🏛Institutions accumulating (13F)
Kodiak Gas Services, Inc. (KGS) is a Energy company listed on NYSE. The stock is up 102% over the past year. Over the trailing 3 months, insiders filed 0 open-market buys and 5 sales (SEC Form 4).
Kodiak Gas Services, Inc. (KGS) financials & analyst ratings
Fundamentals (TTM)
Analyst consensus · 7 analysts
Source: exchange market data + company filings. Figures are trailing-twelve-month or as most recently reported. For informational purposes only — not investment advice.
KGS earnings date, history & EPS estimates
| Report date | EPS est | EPS actual | Surprise | Revenue | Rev. surprise |
|---|---|---|---|---|---|
| May 11, 2026 | $0.54 | $0.59 | +9.3% | $346M | +1.6% |
| Feb 26, 2026 | $0.53 | $0.40 | -24.5% | $333M | +0.2% |
| Aug 6, 2025 | $0.46 | $0.49 | +6.5% | $323M | -2.9% |
| Mar 5, 2025 | $0.42 | $0.27 | -35.7% | $310M | -4.4% |
| Mar 6, 2024 | $0.20 | $0.19 | -5.0% | $226M | +0.7% |
KGS insider trading activity (SEC Form 4)
| Date | Insider | Type | Shares | Price |
|---|---|---|---|---|
| Jul 13, 2026 | Lenamon William Chadofficer: Executive Vice President & COO | Sell | 1,000 | $67.79 |
| Jul 8, 2026 | Roclawski Cory Anneofficer: EVP & CHRO | Sell | 4,169 | $68.36 |
| Jul 7, 2026 | Roclawski Cory Anneofficer: EVP & CHRO | Tax | 2,706 | $66.23 |
| Jul 7, 2026 | Lenamon William Chadofficer: Executive Vice President & COO | Tax | 2,624 | $66.23 |
| Jul 7, 2026 | Griggs Johnofficer: Executive VP & CFO | Tax | 3,771 | $66.23 |
| Jul 7, 2026 | Hamilton Ewan Williamofficer: EVP & Chief Accounting Officer | Tax | 2,214 | $66.23 |
| Jul 7, 2026 | Buhigas Pedro R.officer: Chief Information Officer | Tax | 2,378 | $66.23 |
| Jul 7, 2026 | McKee Robert Michaeldirector, officer: President & CEO | Tax | 9,838 | $66.23 |
| Jun 17, 2026 | Buhigas Pedro R.officer: Chief Information Officer | Sell | 4,625 | $67.78 |
| Jun 16, 2026 | Hamilton Ewan Williamofficer: EVP & Chief Accounting Officer | Sell | 2,729 | $68.62 |
| Jun 11, 2026 | Lenamon William Chadofficer: Executive Vice President & COO | Sell | 1,000 | $67.79 |
| May 11, 2026 | Darden Alexander Newsomdirector | Grant | 2,135 | $70.27 |
| May 11, 2026 | Bonno Terrydirector | Grant | 2,135 | $70.27 |
| May 11, 2026 | Bullock William L. Jr.director | Grant | 2,135 | $70.27 |
| May 11, 2026 | Montana Margaret Cdirector | Grant | 2,135 | $70.27 |
Source: KGS SEC Form 4 filings, latest Jul 13, 2026. For informational purposes only — not investment advice.
See the full KGS insider & 13F page →Kodiak Gas Services, Inc. company profile
Overview
Kodiak Gas Services, Inc. (NYSE:KGS) is a leading provider of contract compression infrastructure for the oil and gas industry in the United States. Founded in 2010 and formerly known as Frontier TopCo, Inc., the company went public in June 2023 and is headquartered in Montgomery, Texas. Kodiak operates as the largest contract compression provider in the U.S., specializing in large horsepower compression equipment that enables natural gas production, gathering, and transportation. The company has grown significantly through both organic expansion and strategic acquisitions, including the major CSI acquisition completed in 2024, and currently operates a fleet of over 4.2 million horsepower across its compression infrastructure.
Business
Kodiak Gas Services operates in the oil and gas equipment and services industry, specifically providing contract compression services that are essential for natural gas production and transportation. Natural gas compression is a critical process that increases the pressure of natural gas to enable its flow through pipelines from wellheads to processing facilities and end markets. The company operates through two primary business segments: Compression Operations represents the core business, generating approximately 85-90% of total revenue. This segment involves operating both company-owned and customer-owned compression equipment at natural gas production sites. Compression units use either natural gas engines or electric motors to power compressors that pressurize natural gas, enabling it to flow efficiently through gathering systems and transmission pipelines. The equipment ranges from smaller units of a few hundred horsepower to large industrial compressors exceeding 3,000 horsepower. Kodiak's fleet averages 943 horsepower per unit, significantly higher than industry averages, reflecting their focus on large horsepower equipment serving major production facilities. Other Services accounts for the remaining 10-15% of revenue and includes complementary offerings such as compression station construction, equipment maintenance and overhaul services, and various time-and-material based ancillary services. This segment supports both the company's own compression operations and provides services to third-party equipment owners. The company's equipment is predominantly deployed in liquids-rich natural gas basins, with over 70% concentrated in the Permian Basin of West Texas and New Mexico, where oil production generates significant associated natural gas that requires compression for transportation and processing.
Revenue model
Kodiak generates revenue primarily through long-term service contracts where customers pay monthly fees for compression services rather than purchasing equipment outright. This contract-based model provides predictable recurring revenue streams, typically spanning multiple years with automatic renewal provisions. The company's paying customers are primarily oil and gas exploration and production companies, pipeline operators, and midstream companies who need compression services to move natural gas from wellheads to processing facilities and markets. Rather than investing capital in purchasing and maintaining compression equipment, these customers prefer to outsource compression needs to specialists like Kodiak, allowing them to focus on their core drilling and production activities. Revenue is generated through several mechanisms: monthly compression service fees based on horsepower deployed, utilization-based pricing tied to actual equipment runtime, and additional charges for maintenance, transportation, and ancillary services. The Other Services segment operates on a project-based fee structure for construction and maintenance work. Several factors influence Kodiak's margins and profitability. Positive margin drivers include tight equipment markets that support premium pricing (currently 20-25% above historical rates), high fleet utilization rates exceeding 97%, economies of scale from operating large horsepower units, and the company's focus on liquids-rich basins where compression demand is most robust. The shift toward electric-driven compression units, which comprise about 40-50% of new deployments, may provide operational cost savings over time. Margin pressures come from rising equipment costs due to supply chain constraints and inflation, skilled labor shortages requiring higher wages and extensive training programs, increasing maintenance costs on aging fleet components, and potential customer budget constraints during commodity price downturns. The company's high debt levels also create interest expense burdens that impact net margins, though leverage has been declining from recent peaks.
Competitive moat
Kodiak Gas Services possesses a moderate but strengthening competitive moat built primarily around operational scale, specialized expertise, and high customer switching costs. The company's position as the largest contract compression provider in the U.S. creates meaningful advantages through economies of scale in equipment procurement, maintenance operations, and geographic coverage that smaller competitors cannot easily replicate. The company's technical expertise and operational capabilities represent significant barriers to entry. Managing large-scale compression fleets requires specialized knowledge in equipment maintenance, predictive analytics, and rapid response capabilities. Kodiak has invested heavily in AI-powered predictive maintenance systems and established the BEARS Academy training facility to develop skilled technicians, creating institutional knowledge that competitors cannot quickly duplicate. High customer switching costs further strengthen the moat. Once compression equipment is installed and integrated into a customer's production system, changing providers involves significant operational disruption, equipment relocation costs, and potential production downtime. Long-term contracts with automatic renewal provisions create additional customer stickiness. However, the moat faces several limitations. The compression services industry has relatively low technological differentiation - the core equipment and processes are well-established, and new entrants with sufficient capital can acquire similar equipment. The industry is also somewhat fragmented, with numerous regional competitors able to serve local markets effectively. Potential competitive threats include customers deciding to purchase their own compression equipment during periods of high service pricing, new entrants backed by private equity or infrastructure funds, and potential technological disruption from alternative compression technologies or changes in natural gas production methods. The ongoing shift toward electrification, while presenting opportunities, also lowers barriers for new competitors who can deploy electric compression without the specialized gas engine expertise that currently favors incumbents.
Risks & safety
Kodiak Gas Services presents a moderate margin of safety with manageable financial risks but some leverage concerns that require monitoring. Liquidity and Solvency: • Cash position remains relatively low at $2 million as of Q1 2025, but strong operating cash flow generation of $114 million quarterly provides adequate liquidity • Current ratio of 1.17x indicates tight but manageable short-term liquidity • Debt-to-equity ratio has improved significantly to 0.04x by Q1 2025, down from over 1.9x in prior periods, indicating successful deleveraging • No immediate solvency concerns given strong EBITDA generation and debt reduction progress Valuation Metrics: • EV/EBITDA of 5.2x appears reasonable for a growing infrastructure services company • P/E ratio of 27x reflects growth expectations but not excessive given the business model • Free cash flow generation has turned positive at $37 million in Q1 2025 after previous negative periods • Price-to-book ratio of 2.4x suggests modest premium to asset value Other Considerations: • High capital intensity requires continuous reinvestment, limiting financial flexibility • Cyclical industry exposure to oil and gas commodity cycles creates earnings volatility risk • Geographic concentration in Permian Basin creates regional economic dependence
Recent development
Over the past two years, Kodiak has executed a significant strategic transformation focused on scale, operational efficiency, and market positioning. The most significant development was the completion and integration of the CSI acquisition in 2024, which established Kodiak as the largest contract compression provider in the United States and added substantial horsepower capacity to the fleet. The company has pursued a portfolio optimization strategy, divesting approximately 129,000 horsepower of smaller, non-core units while simultaneously adding over 200,000 horsepower of new large-scale equipment focused on the Permian Basin. This strategic shift has increased the fleet's average horsepower per unit from 734 to 943, significantly above industry averages, and improved overall fleet utilization to over 97%. Geographic consolidation has been another key strategic move, with Kodiak exiting operations in four international markets including Canada and Romania to focus resources on higher-return U.S. and Mexico operations. This simplification has improved operational efficiency and reduced complexity. The company has made substantial investments in technology and human capital, including the deployment of AI and machine learning systems for predictive maintenance, establishment of the BEARS Academy training facility, and construction of a new training center in Midland, Texas. These initiatives address critical industry challenges around equipment reliability and skilled labor shortages. Electrification initiatives represent a forward-looking strategic development, with approximately 40-50% of new horsepower additions being electric motor-driven units. This positions Kodiak to serve customers seeking to reduce emissions and operational costs where reliable electrical grid access is available. Financial strategy has focused on deleveraging and shareholder returns, with leverage declining from 3.9x to 3.7x and a target of 3.5x by year-end 2025. The company has consistently increased its quarterly dividend and initiated share repurchase programs, returning $139 million to shareholders in 2024.
KGS company profile · for informational purposes only — not investment advice.
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