Kodiak Gas Services, Inc.: Core fundamentals shine while BTM opportunities progress

Research evidence excerpt

Kodiak Gas Services, Inc.: Core fundamentals shine while BTM opportunities progress

Equity Research

North America Midstream and Refining

8 July 2026

Kodiak Gas Services, Inc.

Core fundamentals shine while

BTM opportunities progress

KGS continues to execute on its distributed power strategy, KGS OVERWEIGHT

with investor focus shifting toward commercial traction and Unchanged

North America Midstream

equipment procurement. Its compression business continues and Refining NEUTRAL

Unchanged

to generate stable earnings and cash flow, providing a Price Target USD 72.00

lowered -5% from USD 76.00foundation to support growth.

Price (02-Jul-26) USD 67.94

Potential Upside/Downside +6.0%On the heels of KGS' successful secondary offering in 2Q, we expect investors to look for a

Source: Bloomberg, Barclays Research

meaningful announcement that validates the equity raise. While discussions with

equipment suppliers are still ongoing, we think the company will likely move toward a

Market Cap (USD mn) 6854more programmatic procurement strategy to improve supply visibility and support future

Shares Outstanding (mn) 100.89growth. To this point, we believe a major, multi-year equipment agreement (e.g., for

Free Float (%) 99.12turbines) would likely be the next step.

52 Wk Avg Daily Volume (mn) 1.7

On the commercialization front, we expect KGS to take a disciplined approach to securing Dividend Yield (%) 2.88

a BTM contract, prioritizing risk-adjusted returns over the speed of an announcement. Return on Equity TTM (%) 5.40

Longer term, the key debate is likely to center on KGS' ability to capture market share and Current BVPS (USD) 13.57

the durability of KGS' positioning as competition intensifies. Source: Bloomberg

• In 2Q26, we look for adj. EBITDA of $207mm vs.