Brian Derbio's questions to Kodiak Gas Services Inc (KGS) leadership • Q4 2024
Question
Brian Derbio asked about current contract tenures compared to previous years and inquired about the cost and maintenance differences between electric-drive and traditional gas-driven compression units.
Answer
CEO Mickey McKee responded that contract terms have remained stable, typically in the 3-to-5-year range. He explained that while electric drives have roughly similar CapEx and marginally lower operating costs, their reliability is tied to the unpredictable power grid. In contrast, gas-driven units are self-contained and easier to redeploy, potentially making them a less risky asset for generating long-term cash flows.