TacticScaleWhat Kodiak Gas Services Does & How It Makes Money (KGS)
Updated October 2026 · reflects Kodiak Gas Services's latest reported financials
US contract compression infrastructure provider for the oil and gas industry. Most of its revenue comes from Contract Services, where it charges customers to operate compression and gas treating and cooling infrastructure for them.
How Kodiak Gas Services makes money
Most of its revenue comes from Contract Services, where it charges customers to operate compression and gas treating and cooling infrastructure for them. It also earns time-and-materials fees from station construction, maintenance and overhaul, freight and crane work, and parts sales.
What Kodiak Gas Services does
Kodiak Gas Services, Inc. provides contract compression infrastructure to oil and gas customers in the United States. Its main Contract Services segment operates compression units and gas treating and cooling equipment, both company-owned and customer-owned. This equipment is needed to produce, gather, process and transport natural gas and oil. The smaller Other Services segment covers station construction, maintenance and overhaul, freight and crane work, parts sales and other time-and-materials work. The company was founded in 2010, was formerly known as Frontier TopCo, Inc., and is headquartered in The Woodlands, Texas.
Products & services
- Contract compression services
- Gas treating infrastructure
- Gas cooling infrastructure
- Station construction
- Maintenance and overhaul services
- Parts sales
What is Kodiak Gas Services worth?
On an owner-earnings DCF, Kodiak Gas Services's most-likely value is about $30 versus a recent price near $53 (43% above fair value). But TacticScale only calls a stock undervalued when the price sits below its conservative no-growth floor (~$18) with a margin of safety — so the honest verdict here is “Fairly priced — no edge.” Fair value earns its keep only at the extremes, not in the wide middle.
Price sits in the normal range — fair value isn't actionable here; it earns its keep only when price drops below the no-growth floor, or runs to roughly double the optimistic case.
⚠ High leverage — net debt is 9.4× annual cash flow. Net debt is subtracted from this fair value, but refinancing at higher rates, principal timing, and share dilution aren’t modeled — the equity can be worth far less if cash flow weakens.
Analysis, not advice. Fair value is a margin-of-safety estimate from a deterministic owner-earnings DCF, not a price target or recommendation. See the full breakdown →
Related companies
Archrock (AROC) · Baker Hughes (BKR) · RPC (RES) · Kinetik (KNTK) · Helix Energy Solutions (HLX)