Kodiak Gas Services, Inc. Files 2023 Annual Report on Form 10-K
Ticker: KGS · Form: 10-K · Filed: Mar 7, 2024 · CIK: 1767042
Sentiment: neutral
Topics: Kodiak Gas Services, KGS, 10-K, Annual Report, Natural Gas Transmission
TL;DR
Kodiak Gas Services, Inc. has submitted its comprehensive 2023 annual financial report, detailing its operational and financial performance.
AI Summary
Kodiak Gas Services, Inc. (KGS) filed a Annual Report (10-K) with the SEC on March 7, 2024. Kodiak Gas Services, Inc. filed its 2023 Annual Report on Form 10-K on March 7, 2024. The filing covers the fiscal year ending December 31, 2023. The company's former name was Frontier TopCo, Inc., with a name change on February 6, 2019. Kodiak Gas Services, Inc. is in the Natural Gas Transmission industry (SIC 4922). The company's principal business address is 9950 Woodloch Forest Drive, 19th Floor, The Woodlands, TX 77380.
Why It Matters
For investors and stakeholders tracking Kodiak Gas Services, Inc., this filing contains several important signals. This 10-K filing provides investors and analysts with a detailed overview of Kodiak Gas Services' financial health, operational segments, and strategic direction for the fiscal year 2023. The report includes key financial data, risk factors, and executive compensation, offering insights into the company's performance and future outlook within the natural gas transmission sector.
Risk Assessment
Risk Level: medium — Kodiak Gas Services, Inc. shows moderate risk based on this filing. The company operates in the natural gas transmission industry, which is subject to regulatory changes, commodity price volatility, and operational risks inherent in energy infrastructure.
Analyst Insight
Review the detailed financial statements and risk factors in the 10-K to assess Kodiak Gas Services' financial stability and growth prospects.
Key Numbers
- 2023-12-31 — Fiscal Year End (Conformed period of report)
- 2024-03-07 — Filing Date (As of date)
- 001-41732 — SEC File Number (SEC file number)
- 4922 — SIC Code (Standard Industrial Classification)
Key Players & Entities
- Kodiak Gas Services, Inc. (company) — Filer name
- Frontier TopCo, Inc. (company) — Former company name
- The Woodlands, TX (location) — Business address city and state
- 9950 Woodloch Forest Drive, 19th Floor (location) — Business address street
FAQ
When did Kodiak Gas Services, Inc. file this 10-K?
Kodiak Gas Services, Inc. filed this Annual Report (10-K) with the SEC on March 7, 2024.
What is a 10-K filing?
A 10-K is a comprehensive annual financial report required by the SEC, covering audited financials, business operations, risk factors, and management discussion. This particular 10-K was filed by Kodiak Gas Services, Inc. (KGS).
Where can I read the original 10-K filing from Kodiak Gas Services, Inc.?
You can access the original filing directly on the SEC's EDGAR system. The filing is publicly available and includes all exhibits and attachments submitted by Kodiak Gas Services, Inc..
What are the key takeaways from Kodiak Gas Services, Inc.'s 10-K?
Kodiak Gas Services, Inc. filed this 10-K on March 7, 2024. Key takeaways: Kodiak Gas Services, Inc. filed its 2023 Annual Report on Form 10-K on March 7, 2024.. The filing covers the fiscal year ending December 31, 2023.. The company's former name was Frontier TopCo, Inc., with a name change on February 6, 2019..
Is Kodiak Gas Services, Inc. a risky investment based on this filing?
Based on this 10-K, Kodiak Gas Services, Inc. presents a moderate-risk profile. The company operates in the natural gas transmission industry, which is subject to regulatory changes, commodity price volatility, and operational risks inherent in energy infrastructure.
What should investors do after reading Kodiak Gas Services, Inc.'s 10-K?
Review the detailed financial statements and risk factors in the 10-K to assess Kodiak Gas Services' financial stability and growth prospects. The overall sentiment from this filing is neutral.
Risk Factors
- Regulatory Risks [medium — regulatory]: The company is subject to extensive federal, state, and local regulations concerning environmental protection, safety, and operations, which could impact costs and compliance.
- Commodity Price Volatility [medium — market]: Fluctuations in natural gas and oil prices can affect demand for services and the company's financial results.
- Operational Risks [medium — operational]: The company's operations involve risks of equipment failure, accidents, and natural disasters, which could lead to service interruptions and financial losses.
Key Dates
- 2023-12-31: Fiscal Year End — End of the reporting period for the 2023 10-K.
- 2024-03-07: Filing Date — Date the 10-K was officially filed with the SEC.
- 2023-07-03: IPO Date — Date of the company's Initial Public Offering.
Filing Stats: 4,431 words · 18 min read · ~15 pages · Grade level 16.2 · Accepted 2024-03-07 16:32:53
Key Financial Figures
- $0.01 — ich registered Common Stock, par value $0.01 per share KGS New York Stock Exchange
- $16.24 — 30, 2023 based on the closing price of $16.24 for shares of the Registrant's common s
Filing Documents
- kgs-20231231.htm (10-K) — 1824KB
- secondamendedandrestatedby.htm (EX-3.2) — 155KB
- executiveseveranceplanofko.htm (EX-10.11) — 157KB
- listofsubsidiariesasof1231.htm (EX-21.1) — 6KB
- consentofbdousapc.htm (EX-23.1) — 3KB
- kgs-202310kxex311.htm (EX-31.1) — 10KB
- kgs-202310kxex312.htm (EX-31.2) — 10KB
- kgs-202310kxex321.htm (EX-32.1) — 5KB
- kgs-202310kxex322.htm (EX-32.2) — 5KB
- clawbackpolicyofkodiakgass.htm (EX-97.1) — 28KB
- kgs-20231231_g1.jpg (GRAPHIC) — 73KB
- 0001767042-24-000011.txt ( ) — 9999KB
- kgs-20231231.xsd (EX-101.SCH) — 73KB
- kgs-20231231_cal.xml (EX-101.CAL) — 104KB
- kgs-20231231_def.xml (EX-101.DEF) — 323KB
- kgs-20231231_lab.xml (EX-101.LAB) — 799KB
- kgs-20231231_pre.xml (EX-101.PRE) — 602KB
- kgs-20231231_htm.xml (XML) — 1206KB
Risk Factors
Item 1A. Risk Factors 21
Unresolved Staff Comments
Item 1B. Unresolved Staff Comments 44
Cybersecurity
Item 1C. Cybersecurity 44
Properties
Item 2. Properties 45
Legal Proceedings
Item 3. Legal Proceedings 45
Mine Safety Disclosures
Item 4. Mine Safety Disclosures 45 Part II 46
Market for Registrant's Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities
Item 5. Market for Registrant's Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities 46
[ Reserved ]
Item 6. [ Reserved ] 47
Management's Discussion and Analysis of Financial Condition and Results of Operations
Item 7. Management's Discussion and Analysis of Financial Condition and Results of Operations 47
Quantitative and Qualitative Disclosures About Market Risk
Item 7A. Quantitative and Qualitative Disclosures About Market Risk 63
Financial Statements and Supplementary Data
Item 8. Financial Statements and Supplementary Data 65
Changes in and Disagreements With Accountants on Accounting and Financial Disclosures
Item 9. Changes in and Disagreements With Accountants on Accounting and Financial Disclosures 66
Controls and Procedures
Item 9A. Controls and Procedures 66
Other Information
Item 9B. Other Information 67
Disclosure Regarding Foreign Jurisdictions that Prevent Inspections
Item 9C. Disclosure Regarding Foreign Jurisdictions that Prevent Inspections. 67 Part III 68
Directors, Executive Officers and Corporate Governance
Item 10. Directors, Executive Officers and Corporate Governance 68
Executive Compensation
Item 11. Executive Compensation 68
Security Ownership of Certain Beneficial Owner and Management and Related Stockholder Matters
Item 12. Security Ownership of Certain Beneficial Owner and Management and Related Stockholder Matters 68
Certain Relationships and Related Transactions, and Director Independence
Item 13. Certain Relationships and Related Transactions, and Director Independence 68
Principal Accounting Fees and Services
Item 14. Principal Accounting Fees and Services 69 Part IV 70
Exhibits and Financial Statement Schedules
Item 15. Exhibits and Financial Statement Schedules 70
Signatures
Signatures 72 2 Table of Conten ts Commonly Used Defined Terms As used in this Annual Report on Form 10-K (this "Annual Report"), unless the context indicates or otherwise requires, the terms listed below have the following meanings: "ABL Credit Agreement" means that certain Fourth Amended and Restated Credit Agreement, dated as of March 22, 2023, among Frontier Intermediate Holding, LLC, Kodiak Gas Services, LLC, the other obligors party thereto, the lenders party thereto, and JPMorgan Chase Bank, N.A., as administrative agent, as amended by the First Amendment thereto, the Second Amendment thereto and the Third Amendment thereto; "ABL Facility" means our senior secured asset-based revolving credit facility provided under and governed by the ABL Credit Agreement; "Annual Financial Statements" means the audited consolidated financial statements for the years ended December 31, 2023, 2022 and 2021; "Company," "Kodiak," "we," "our," or "us" means Kodiak Gas Services, Inc. and its consolidated subsidiaries; "CSI Compressco" means CSI Compressco LP, a Delaware limited partnership with which the Company entered into an agreement and plan of Merger on December 19, 2023; "EQT" or "EQT AB Group" means, as the context may require, EQT AB or EQT AB and its direct and indirect subsidiaries including, for the avoidance of doubt, investment vehicles managed and/or operated by affiliates of EQT AB and their respective portfolio companies; "EQT AB" means EQT AB (publ), a Swedish public limited liability company registered with the Swedish Companies Registration Office (Reg. No. 556849-4180) and whose ordinary shares are listed on Nasdaq Stockholm stock exchange; "Holdco Term Loan" means the Term Loan after the consummation of the Term Loan Transaction as described below; "Indenture" means Kodiak Gas Services, Inc. senior notes due 2029, pursuant to an indenture, dated February 2, 2024, by and among Kodiak Services, Kodiak, certain other subsidiary guarantors party
Business
Item 1. Business Overview We are a leading operator of contract compression infrastructure in the United States. Our wholly-owned subsidiary Kodiak Gas Services, LLC was formed in 2011, and we have been operating compression infrastructure since that time. We completed the acquisition of Pegasus Optimization Managers, LLC, a provider of compression infrastructure, in October 2019 and completed our IPO in July 2023. Our compression operations ("Compression Operations") and related services are critical to our customers' ability to reliably produce and transport natural gas and oil. We are a market leader in the Permian Basin, which is the largest producing natural gas and oil basin in the U.S. We operate our large horsepower compression units under stable, fixed-revenue term contracts with upstream and midstream customers. We believe large horsepower compression units serve more stable applications, receive longer initial contracts, are more likely to be renewed, and produce higher margins, ultimately generating recurring cash flow and return on invested capital. When properly maintained, our compression assets have long useful lives, consistent with the expected production lives of the key regions where we operate. We believe our customer-centric business model positions us as the preferred contract compression operator for our customers and creates long-standing relationships. We strategically invest in the training, development, and retention of our highly skilled and dedicated employees and believe their expertise and commitment to excellence enhances and differentiates our business model. Furthermore, we maintain an intense focus on being one of the most sustainable and responsible operators of contract compression infrastructure. As of December 31, 2023, approximately 84% of our existing compression assets were strategically deployed in the Permian Basin and Eagle Ford Shale, which the United States Energy Information Administration ("EIA") expects will mai