Kodiak Gas Services' Contracted Growth Plans Supported by Continued Natural Gas Demand, RBC Says

MT Newswires Live11-18

Kodiak Gas Services (KGS) contracted growth plans should be supported by continued demand for natural gas, as large high-horsepower compression remains essentially fully utilized, which is expected to drive pricing and margin strength, RBC said in a Monday note.

Kodiak has noted that natural gas volume growth expectations have stretched lead times to about 60 weeks, reflecting continued demand for compression and de-risking growth plans for 2026, RBC said.

RBC says it expects 2025 and 2026 adjusted earnings before interest, taxes, depreciation and amortization of $713 million and $762 million, compared with $713 million and $761 million, previously. Adjusted EBITDA for 2027 is forecast at $819 million.

The firm maintained its outperform rating and raised its price target to $45 from $43.

Price: 32.78, Change: -0.17, Percent Change: -0.52

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