Kodiak Gas (KGS) Q1 2026 Earnings Transcript

Motley Fool Transcribing, The Motley Fool Mon, May 11, 2026 at 11:48 PM GMT+7 41 min read KGS Image source: The Motley Fool. President and Chief Executive Officer — Mickey McKee Executive Vice President and Chief Financial Officer — John Griggs Need a quote from a Motley Fool analyst? Email pr@fool.com Graham Sones: Good morning, and thanks for joining us for the Kodiak Gas Services, Inc. conference call and webcast to review our first quarter 2026 results. Joining me from the company today are Mickey McKee, President and Chief Executive Officer, and John Griggs, Executive Vice President and Chief Financial Officer. After my remarks, Mickey and John will cover recent market developments, share an update on our power strategy, and walk through our results and updated 2026 outlook, including our new power segment. Then we will open it up for Q&A. A replay of today s call will be available by webcast and phone through May 25, 2026. Replay details are on the Investors tab of our website at codietgas.com. As a reminder, the information discussed today speaks only as of 05/11/2026 and may no longer be accurate by the time you listen to a replay or read a transcript. The comments made by management during this call may contain forward-looking statements within the meaning of U.S. Federal Securities Laws. These statements reflect management s current views, beliefs and assumptions based on information currently available. Although we believe the expectations referenced in these forward-looking statements are reasonable, various risks, uncertainties and contingencies could cause the company s actual results, performance, or achievements to differ materially from those expressed in the statements made by management, and management can give no assurance that such statements or expectations will prove to be correct. The comments will also include certain non-GAAP financial measures. Details and reconciliations to the most comparable GAAP measures are included in our earnings release, which can be found on our website. Now, I would like to turn the call over to Kodiak Gas Services, Inc. s President and CEO, Mickey McKee. Mickey? Mickey McKee: Thanks, Graham. Thanks to everyone for joining us today. I want to start like we do in all meetings at Kodiak with safety. As we head into the summer driving season, it is a good reminder that driving is one of the riskiest things many of us do every day. That is why we have all Kodiak employees complete a safe driving program, and we rolled out telematics last year to help reduce distractions when behind the wheel. Thank you to our safety and training teams for equipping our people with these valuable tools, and to everyone at Kodiak for living our safety-first mindset every day. Recent geopolitical events have served as a stark reminder that energy security and reliable energy infrastructure are critical to our daily lives. The energy landscape keeps evolving, with rising demand for natural gas tied to LNG exports and power generation, including data centers as the AI race accelerates. This step change in demand is straining supply chains, pushing equipment lead times to records, and increasing the need for highly trained technicians to keep large horsepower equipment running. Kodiak Gas Services, Inc. is well positioned to meet this challenge. Our supply chain team has been proactive in sourcing new equipment for both compression and power, and our highly skilled workforce is ready to keep delivering the service our customers expect. The natural gas compression market is in uncharted territory. Lead times for new large horsepower equipment keep extending and now sit at over 180 weeks for 3,600 inline gas compression engines—over three years. Through our strong vendor relationships, we have secured new large horsepower compression packages for 2027 and 2028, and we are working to secure additional units for 2029 delivery. We remain confident in our ability to achieve our targeted annual horsepower growth of 150,000 horsepower per year, resulting in a compression fleet of at least 5.2 million horsepower by the end of the decade. While supply is limited, compression demand is building across both our E&P and midstream customers as they now have increased visibility into the next wave of natural gas volumes. Permian operators are starting to pick up activity with higher oil prices and record U.S. oil export volumes, and with more than 5 Bcf per day of Permian gas takeaway capacity expected online by year end, several customers have asked whether they can accelerate their 2027 equipment orders. This has manifested itself in our pricing, as we have demonstrated continued pricing power we expect to continue into 2027 and beyond, given the tightness in the market. One thing to keep in mind is that Kodiak Gas Services, Inc. has consistently high graded our fleet over the last couple of years, strategically divesting some of our noncore small horsepower compression that command

Kodiak Gas (KGS) Q1 2026 Earnings Transcript

Key takeaways

Also covered by

Kodiak Gas (KGS) Q1 2026 Earnings Transcript

Key takeaways

Also covered by

More in business