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Dec 31, 2024
Kodiak Gas Services Q4 2024 Earnings Report
Kodiak Gas Services reported increased revenue and net income for Q4 2024, with strong contract services performance and fleet utilization.
Key Takeaways
Kodiak Gas Services delivered solid Q4 2024 results, reporting a net income of $19.1 million, compared to a net loss of $6.9 million in Q4 2023. Total revenue reached $309.5 million, up from $225.9 million in the prior year. The contract services segment performed well, contributing to a sequential increase in adjusted gross margin percentage. The company also executed part of its share repurchase program while maintaining high fleet utilization.
Net income was $19.1 million, a turnaround from a net loss of $6.9 million in Q4 2023.
Total revenue increased 37% YoY to $309.5 million.
Contract services revenue grew to $280.2 million, with an adjusted gross margin of 66.7%.
Fleet utilization remained strong at 97%.
Revenue by Segment
Forward Guidance
Kodiak Gas Services expects continued revenue growth and strong demand for large horsepower compression infrastructure, particularly in the Permian Basin.
Positive Outlook
- Projected adjusted EBITDA between $685M and $725M in FY 2025.
- Growth capital expenditures expected between $240M and $280M.
- Continued high fleet utilization expected.
- Increased demand from LNG export projects and natural gas-fired electricity.
- Strengthening market position in the Permian Basin.
Challenges Ahead
- Potential cost pressures affecting profit margins.
- Challenges in maintaining capital discipline amid expansion.
- Competitive market environment in contract compression services.
- Macroeconomic factors influencing energy infrastructure investments.
Historical Earnings Impact
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Avg. Return Before/After Earnings
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