Q3 2024 Kodiak Gas Services Inc Earnings Call Transcript
Key Points
- Kodiak Gas Services Inc (KGS) reported a record quarter with revenues of $325 million and adjusted EBITDA of $168 million.
- The company successfully completed a divestiture of its small horsepower gas jack business, simplifying operations and increasing fleet horsepower.
- Kodiak Gas Services Inc (KGS) increased its trading liquidity by over 100% and reduced shareholder concentration by about 20%.
- The company achieved a high fleet utilization rate of over 96%, with core large horsepower assets at over 99% utilization.
- Kodiak Gas Services Inc (KGS) raised the low end of its full-year revenue and adjusted EBITDA guidance, reflecting strong industry fundamentals and operational efficiency.
- Kodiak Gas Services Inc (KGS) reported a net loss of $6.2 million for the quarter, impacted by non-cash items totaling nearly $41 million.
- The company faces ongoing inflationary pressures, with mid-single-digit increases in the cost of new compression units.
- Lead times for new compression units remain elongated at approximately nine months, potentially impacting future deployments.
- The company is still working through integration challenges, including elevated inventory levels due to operating in two systems post-acquisition.
- Kodiak Gas Services Inc (KGS) has a significant portion of contracts up for renewal, which could impact future revenue if not successfully renegotiated.
Greetings and welcome to the Kodiak guest services. Third quarter, 2024 earnings conference call.
At this time, all participants are in a listen-only mode. A question and answer session will follow the formal presentation.
If anyone should acquire operator assistance, please press star zero on your telephone keypad. As a reminder, this conference is being recorded.
I know to turn the conference over to your host, Gram Sos Vice President of Investor Relations. Thank you. You may begin.
Good morning. We.
Appreciate you joining us for the Kodiak Gas.
Services conference.
Call and webcast to review third quarter, 2024 results participating from the company today are Mickey mckee, President and Chief Executive Officer and John Griggs, Chief Financial Officer.
Following my remarks, Mickey and John will review recent developments. Discuss our third quarter financial results, our updated 2024 outlook and some initial thoughts
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