Kodiak Gas Services is the leading provider of large horsepower contract compression services in the U.S., primarily serving natural gas and oil producers and midstream operators in the Permian Basin and Eagle Ford Shale. Compression increases natural gas pressure so it can move from the wellhead through gathering systems and pipelines to end markets — without it, gas cannot flow. Kodiak owns a fleet of roughly 4,500 compression units totaling ~4.5M horsepower, of which ~80% is large horsepower (greater than 1,000 HP per unit). Kodiak deploys units at customer sites under long-term fixed-fee contracts, operating and maintaining the equipment itself. Customers pay a fixed monthly fee per unit regardless of production volumes, and fuel gas is provided by the customer at no cost to Kodiak. The majority of contracts include annual inflation escalators. Kodiak's revenue is driven by total revenue-generating horsepower deployed and the monthly fee per horsepower. Fleet utilization runs at ~98%, with large horsepower at ~99%. Kodiak sells primarily to investment-grade upstream and midstream companies. The company is adding ~150,000 new large horsepower per year organically, funded from internal cash flow. In early 2026, Kodiak announced a pending ~$675M acquisition of Distributed Power Solutions, a distributed natural gas power generation business, which Kodiak argues is synergistic given overlapping customers, the same Caterpillar engine families, and shared demand drivers in the Permian Basin.