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Sep 30, 2024
Kodiak Gas Services Q3 2024 Earnings Report
Kodiak Gas Services reported record quarterly Adjusted EBITDA and Free Cash Flow.
Key Takeaways
Kodiak Gas Services announced third quarter 2024 financial results, featuring record quarterly Adjusted EBITDA of $168.4 million and Free Cash Flow of $52.5 million. The company raised full-year 2024 Adjusted EBITDA guidance to a range of $600 to $610 million and provided an early outlook on 2025 Adjusted EBITDA.
Contract Services segment revenue was $284.3 million with Adjusted Gross Margin Percentage of 66.0%.
Net loss of $6.2 million included a $9.9 million long-lived asset impairment, a $10.4 million loss on asset sales and a $20.3 million non-cash, mark-to-market loss on interest rate hedges.
Fleet utilization ended the third quarter at 96.4%, a sequential increase of 2.1%.
The company repurchased one million shares for $25 million.
Kodiak Gas Services
Kodiak Gas Services
Kodiak Gas Services Revenue by Segment
Revenue by Segment
Contract Services Revenue
CapyFin.comOther Services Revenue
CapyFin.com Forward Guidance
Kodiak is providing revised guidance for the full year 2024 and an early outlook on 2025 Adjusted EBITDA.
Positive Outlook
- Full-year 2024 Adjusted EBITDA is expected to be between $600 million and $610 million.
- Contract Services revenues are projected to be between $1,020 million and $1,040 million.
- Contract Services Adjusted Gross Margin Percentage is expected to be between 64% and 66%.
- Other Services revenues are projected to be between $125 million and $135 million.
- Other Services Adjusted Gross Margin Percentage is expected to be between 14% and 17%.
Challenges Ahead
- Growth capital expenditures are projected to be between $210 million and $230 million.
- Maintenance capital expenditures are projected to be between $60 million and $70 million.
- Discretionary Cash Flow is expected to be between $365 million and $385 million.
- Adjusted EBITDA guidance cannot be reconciled to net income (loss) without unreasonable efforts.
- Discretionary Cash Flow guidance assumes no change to Secured Overnight Financing Rate futures.
Revenue & Expenses
Visualization of income flow from segment revenue to net income