Kodiak Gas Services Inc. (NYSE: KGS)

Kodiak Gas Services Inc. (NYSE: KGS) is a leading provider of contract compression, distributed power and energy infrastructure services in the United States. The company partners with customers across the energy and digital infrastructure sectors, including oil and gas producers, midstream operators, and data center developers and operators.

Kodiak’s platform combines large-scale natural gas compression infrastructure with a growing distributed power business and complementary engineering, construction, operations and aftermarket capabilities. The company is expanding its infrastructure footprint to address increasing natural gas production and demand alongside growing requirements for reliable, rapidly deployable power.

Kodiak is headquartered in The Woodlands, Texas.

Compression Infrastructure

Kodiak provides contract natural gas compression services across major U.S. producing basins for applications including field gathering, gas lift, processing and enhanced oil recovery. As of June 30, 2026, its compression fleet totaled approximately 4.5 million horsepower, including approximately 4.4 million revenue-generating horsepower, with fleet utilization of 98.2%. Approximately 81% of total fleet horsepower consists of large-horsepower units exceeding 1,000 horsepower, while approximately 70% of revenue-generating horsepower is deployed in the Permian Basin.

The company’s compression capabilities extend from equipment deployment to design, engineering, installation, operations and maintenance. Kodiak also designs and constructs compressor stations and provides project management, facility electrification, aftermarket services, parts, equipment overhauls and maintenance services for customer-owned compression assets. Approximately 90% of Kodiak’s fleet horsepower was operating under contracts with remaining terms as of June 30, 2026.

Power Infrastructure

Kodiak Power Solutions provides turnkey distributed power generation and scalable energy solutions for data centers, microgrids, manufacturing facilities and other large-load applications. Its platform includes reciprocating engines and gas turbines alongside switchgear, transformers and other balance-of-plant equipment, supported by in-house design, engineering, installation and operations capabilities. As of June 30, 2026, Kodiak’s distributed power fleet totaled 405 megawatts, consisting of 237 megawatts of reciprocating engines and 168 megawatts of turbines.

Kodiak is expanding this platform to address demand for rapidly deployable, behind-the-meter power generation. In July 2026, the company announced a multi-year strategic agreement with Baker Hughes establishing a framework for up to 1.8 gigawatts of power generation capacity. The initial equipment award includes approximately 1 gigawatt of gas turbines and generators to be delivered through 2030. Kodiak is targeting approximately 2 gigawatts of distributed power capacity by year-end 2030.

Market Opportunity

Kodiak operates within markets supported by increasing U.S. natural gas consumption and growing electricity requirements from digital infrastructure. According to the company’s August 2026 investor presentation, U.S. natural gas demand is projected to increase by approximately 32 Bcf/d between 2025 and 2035. Based on an estimated compression intensity of approximately 600,000 horsepower per Bcf/d, Kodiak estimates approximately 19 million incremental horsepower of compression capacity could be required by 2035.

Data center development is creating an additional opportunity for distributed power infrastructure. Kodiak’s investor presentation cites more than 700 U.S. data centers under construction or development and approximately $5 trillion in projected hyperscaler capital expenditures between 2026 and 2030. With potential grid-connection wait times of five to 10 years, behind-the-meter generation offers an alternative for projects requiring faster access to electricity. Research cited by Kodiak projects more than 60 gigawatts of behind-the-meter power solutions could be needed by 2035.

Texas is central to both opportunities. Kodiak reports more than 11 Bcf/d of Permian natural gas pipeline takeaway projects expected by 2029, more than 5 gigawatts of natural gas power plants under construction and more than 30 gigawatts of data center projects in Texas over the next two years.

Leadership Team

Robert “Mickey” McKee, President and CEO, formed the Kodiak group of companies in 2010 and has served as President since formation and CEO since 2019. He has also served as a director since Kodiak’s 2023 initial public offering. Mr. McKee has more than 22 years of natural gas compression experience. Prior to founding Kodiak’s predecessor, he served as Senior Vice President of Sales and Engineering for CDM Resource Management LLC. He holds a bachelor’s degree in mechanical engineering from Tulane University.

John B. Griggs, Executive Vice President and CFO, joined Kodiak in 2023. He previously served as CFO of Circulus Holdings, Conquest Completion Services and Rubicon Oilfield International. Earlier in his career, he was a Managing Director at CSL Capital Management, a Senior Vice President with the direct capital arm of the D. E. Shaw Group and an investment banker with Simmons & Company International. Mr. Griggs holds an MBA from Harvard Business School and a bachelor’s degree from the University of Texas at Austin.

Chad Lenamon, Executive Vice President and COO, joined Kodiak in 2019 as Executive Vice President of Special Projects and Supply Chain. He has approximately 25 years of experience spanning operations, engineering, fleet management and supply chain functions. His previous roles include President of CDM Resource Management LLC and Pegasus Optimization Managers LLC.