The following is a summary of the Kodiak Gas Services, Inc. (KGS) Q1 2024 Earnings Call Transcript:
Financial Performance:
Kodiak Gas Services reported Q1 2024 revenues of $216 million, marking a 13% increase compared to Q1 2023.
Their Adjusted EBITDA was $118 million, a rise of 3% from the previous quarter and 11% year-over-year.
Revenues from Compression operations for the quarter reached $193 million, with a growth of 2% and 9% compared to the previous quarter and the same quarter a year ago.
They invested almost $11 million in Maintenance capital expenditure and $59 million in growth CapEx.
Revised 2024 guidance estimates revenues between $1.125 billion and $1.175 billion, with adjusted EBITDA ranging from $580 million to $610 million.
Business Progress:
Kodiak welcomed new CSI employees, expanding the company's size and enhancing its footprint in the Permian Basin and Eagle Ford Shale.
Their integration process with CSI is on track, with projected significant synergies set to generate additional value for shareholders.
The fleet expanded with an increase of over 26,000 horsepower in Q1, making them the largest contract compression provider in the industry.
Full contracting for 2024 new unit deliveries, along with the first three quarters of 2025, has been accomplished.
The company expects over $20 million of cost synergies from the recent acquisition within 12-18 months.
Kodiak continues to be open to potential M&A opportunities, focusing on liquids-rich associated gas basins and other basins like the Eagle Ford, Rocky Mountain, and Northeast that align with their business strategy.
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