Kodiak Gas Services, Inc. (NYSE:KGS) Q1 2024 Earnings Call Transcript

Bill Austin: Hey, guys. Thanks for taking my question. So, you guys talked a little bit about the CapEx and the new units that you’re seeing out there. How are you seeing deliveries for the remainder of this year on that new unit side? I know you’ve committed all that CapEx last year and now you’re kind of getting to all those coming in? Are they coming in this quarter, next quarter? How are you guys seeing that?

John Griggs: Yes, it’s going to come in pretty smooth throughout the rest of the year. I think there’s a big chunk in Q2 that CSI had ordered previously from last year, but that’s all that will be pretty evenly spread throughout the rest of the year for the combined entities. So, we’re not seeing anything slide or any supply chain issues or bottlenecks that would affect that right now, and that’s knock on wood. So, you’ll see those come in pretty ratably throughout the rest of the year.

Bill Austin: Nice saying that the supply chain stuff is getting a little bit more predictable. And I know you guys have addressed it a little bit on the M&A side. From an organic perspective, any other basins that you guys are looking at that sound exciting to start more focusing on or just kind of sticking to the knitting these days?

John Griggs: I mean we obviously have a plenty of work to do in the Permian Basin. But labor is a challenge there. So, we’re going to be open definitely to working on some additional type of basins that are important to us. The Eagle Ford, Rocky Mountain region, some stuff up in the Northeast. Those are all areas that we think are opportunistic that have some liquids-rich type of opportunities with associated gas that kind of fit into our overall thesis for the business.

Bill Austin: Great. Thanks for taking my question, guys. Congrats on the quarter. I will leave it there to everyone else.

Mickey McKee: Thanks, Bill

Operator: Thank you. This brings us to the end of the question-and-answer session. I would like to turn the floor back over to Mr. McKee for closing comments.

Mickey McKee: Thank you, operator, and thanks to everyone who participated in today’s call. We look forward to speaking with you again after we report our second quarter results.

Operator: Ladies and gentlemen, this concludes today’s event. You may disconnect your lines at this time, and enjoy the rest of your day.