Kodiak Gas Services, Inc. (NYSE:KGS) Q4 2023 Earnings Call Transcript

Selman Akyol: Understood. And then just a smaller question. In your guidance, you talked about 12.5 million for non-unit compression for capital. I’m just kind of curious to what that was, or what that will be.

John Griggs: Yes, that’s kind of ropes open dove. Selman, this is John. It’s the trucks, it’s crane trucks, it’s software that’s capitalized leasehold improvements, things of that nature. And we’re always going to have it every single year just to kind of take care of older equipment that’s kind of aging out or else just keep up with the growth in the business.

Selman Akyol: Go it. And then the last one for me just on the other services. You talked about how ’23 was skewed by a couple of large contracts. Is there any thoughts or guidance around just sort of the cadences, we should think about our model and going forward on that?

Mickey McKee: Great question. No, it’s — I would say, divided in four. I mean, that’s probably the best way to approach it at this point. The nature of those contracts, some you may be awarded a contract, call it 9-10 months in advance when you actually complete it. But it’ll be chunky in terms of how the revenues kind of unfold and that you’ll have some stuff happening at the front end and then the field work might be four weeks at the very end and that’s when the main chunk would come in, and then up contracts might be just more the field related stuff be shorter. So that’s where it becomes difficult to predict because you might be awarded a contract, you know, in third quarter and finish it by the end of the fourth quarter. So that’s what happened in ’23.

Selman Akyol: Got it. Thank you so much.

Operator: Thank you. We have reached the end of our question and answer session. I would now like to turn the floor back over to management for closing remarks.

Mickey McKee: Thanks, operator. In summary, I could not be more pleased with our record setting results in 2023. We believe the Kodiak’s brightest days are in front of us and we look forward to continued profitable growth in 2024 and beyond. As we look forward to speaking with every everybody again on our next earnings call. Thank you.

Operator: Thank you that does conclude today’s teleconference. We appreciate your participation. You may disconnect your lines at this time. Enjoy the rest of your day.