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Investor Presentation November 2025
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2 Cautionary Note Regarding Forward-Looking Statements. This presentation contains, and our officers and representatives may from time to time make, “forward-looking statements” within the meaning of the safe harbor provisions of the U.S. Private Securities Litigation Reform Act of 1995. Forward-looking statements are neither historical facts nor assurances of future performance. Instead, they are based only on our current beliefs, expectations and assumptions regarding the future of our business, future plans and strategies, projections, anticipated events and trends, the economy and other future conditions. Forward-looking statements can be identified by words such as: “anticipate,” “intend,” “plan,” “goal,” “seek,” “believe,” “project,” “estimate,” “expect,” “strategy,”“future,” “likely,”“may,”“should,” “will” and similar references to future periods. Examples of forward-looking statements include, among others, statements we make regarding: (i) expected operating results, such as revenue growth and earnings, including upon the continued integration of CSI Compressco LP (“CSI Compressco”) into our operations, and our ability to service our indebtedness; (ii) anticipated levels of capital expenditures and uses of capital; (iii) current or future volatility in the credit markets and future market conditions; (iv) potential or pending acquisition transactions or other strategic transactions, the timing thereof, the receipt of necessary approvals to close such acquisitions, our ability to finance such acquisitions, and our ability to achieve the intended operational, financial, and strategic benefits from any such transactions; (v) expectations of the effect on our financial condition of claims, litigation, environmental costs, contingent liabilities and governmental and regulatory investigations and proceedings; (vi) production and capacity forecasts for the natural gas and oil industry; (vii) strategy for customer retention, growth, fleet maintenance, market position and financial results; (viii) our interest rate hedges; and (ix) strategy for risk management. Because forward-looking statements relate to the future, they are subject to inherent uncertainties, risks and changes in circumstances that are difficult to predict and many of which are outside of our control. Our actual results and financial condition may differ materially from those indicated in the forward-looking statements. Therefore, you should not place undue reliance on any of these forward-looking statements. Important factors that could cause our actual results and financial condition to differ materially from those indicated in the forward-looking statements include, among others, the following: (i) a reduction in the demand for natural gas and oil and/or a decrease in natural gas and oil prices; (ii) the loss of, or the deterioration of the financial condition of, any of our key customers; (iii) nonpayment and nonperformance by our customers, suppliers or vendors; (iv) competitive pressures that may cause us to lose market share; (v) the structure of our Contract Services contracts and the failure of our customers to continue to contract for services after expiration of the primary term; (vi) our ability to successfully integrate any acquired businesses, including CSI Compressco, and realize the expected benefits thereof in the expected timeframe or at all; (vii) our ability to fund purchases of additional compression equipment; (viii) our ability to successfully implement our share repurchase program; (ix) a deterioration in general economic, business, geopolitical or industry conditions, including as a result of the conflict between Russia and Ukraine, the Israel-Hamas war, and the hostilities in the Middle East, inflation, and slow economic growth in the United States; (x) a downturn in the economic environment, as well as continued inflationary pressures; (xi) international operations and related mobilization and demobilization of compression units, operational interruptions, delays, upgrades, refurbishment and repair of compression assets and any related delays and costs overruns or reduced payment of contracted rates; (xii) our ability to successfully manage our international operations and comply with any applicable laws and regulations, including risks associated with doing business in foreign countries, and our ability to comply with the U.S. Foreign Corrupt Practices Act (“FCPA”) or other anti-corruption laws; (xiii) the outcome of any pending internal review or any future related government enforcement actions; (xiv) tax legislation and the impact of changes to applicable tax laws, including the passage of the One Big Beautiful Bill Act, and administrative initiatives or challenges to our tax positions; (xv) the loss of key management, operational personnel or qualified technical personnel; (xvi) our dependence on a limited number of suppliers; (xvii) the cost of compliance with existing and new governmental regulations, as well as the associated uncertainty given the new U.S. federal government administration; (xviii) changes in trade policies and regulations, including increases or changes in duties, current and potentially new tariffs and other actions; (xix) the cost of compliance with regulatory initiatives and stakeholders’ pressures, including sustainability and corporate responsibility; (xx) the inherent risks associated with our operations, such as equipment defects and malfunctions; (xxi) our reliance on third-party components for use in our IT systems; (xxii) legal and reputational risks and expenses relating to the privacy, use and security of employee and client information; (xxiii) threats of cyber-attacks or terrorism; (xxiv) agreements that govern our debt contain features that may limit our ability to operate our business and fund future growth and also increase our exposure to risk during adverse economic conditions; (xxv) volatile and/or elevated interest rates and associated central bank policy actions; (xxvi) our ability to access the capital and credit markets or borrow on affordable terms (or at all) to obtain additional capital that we may require; (xxvii) major natural disasters, severe weather events or other similar events that could disrupt operations; (xxviii) unionization of our labor force, labor interruptions and new or amended labor regulations; (xxix) renewal of insurance; (xxx) the effectiveness of our disclosure controls and procedures; and (xxxi) such other factors as discussed throughout the “Risk Factors” and “Management’s Discussion and Analysis of Financial Condition and Results of Operations” sections and elsewhere in our Annual Report on Form 10-K for the year ended December 31, 2024, filed with the U.S. Securities and Exchange Commission.(“SEC”) on March 7, 2025, as may be updated by subsequent filings under the Securities Exchange Act of 1934, as amended, including Forms 10-Q and 8-K, each of which can be obtained free of charge on the SEC’s website at http://www.sec.gov. Any forward-looking statement made by us in this presentation is based only on information currently available to us and speaks only as of the date on which it is made. Except as may be required by applicable law, we undertake no obligation to publicly update any forward-looking statement whether as a result of new information, future developments or otherwise. Non-GAAP Financial Measures. This presentation contains certain financial measures not presented in accordance with generally accepted accounting principles (“GAAP”), including adjusted gross margin, adjusted gross margin percentage, adjusted net income, adjusted EBITDA, adjusted EBITDA percentage, discretionary cash flow and free cash flow. Such non-GAAP measures should not be considered an alternative to, or more meaningful than, the most directly comparable measure of financial performance presented in accordance with GAAP. Moreover, such non-GAAP measures may not be comparable to similarly titled measures of other companies. However, we believe these non- GAAP financial measures provide useful information to investors because, when viewed with our GAAP results and the accompanying reconciliation, they provide a more complete understanding of our performance than GAAP results alone. See the Supplemental Slides for reconciliation of non-GAAP measures. Industry & Market Data. The market data and certain other statistical information used throughout this presentation are based on independent industry publications, government publications or other published independent sources. Although we believe these third-party sources are reliable as of their respective dates, we have not independently verified the accuracy or completeness of this information. Some data is also based on our good faith estimates and our management’s understanding of industry conditions. The industry in which we operate is subject to a high degree of uncertainty and risk due to a variety of factors. These and other factors could cause results to differ materially from those expressed in these publications. Intellectual Property. This presentation contains trademarks, trade names and service marks of other companies, which are the property of their respective owners. We do not intend our use or display of other parties’ trademarks, trade names or service marks to imply, and such use or display should not be construed to imply, a relationship with, or endorsement or sponsorship of us by, these other parties. Disclaimer
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3 Kodiak Gas Services Overview 1 Market capitalization and enterprise value calculated as of November 7, 2025 and debt outstanding as of September 30, 2025. Dividend yield based on stock price as of November 7, 2025 and third quarter 2025 dividend of $0.49 per share annualized 2 Fleet statistics as of September 30, 2025; Average age of 1,000+ horsepower units POWERING Our Critical Energy Future $2.9 billion Market Capitalization1 $5.6 billion Enterprise Value1 5.8% Dividend Yield1 4.5 million Fleet Horsepower2 ~7 years Average Age of Large Horsepower2 ~98% Fleet Utilization Rate2
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4 Kodiak Contract Compression Fleet 80%20% Compression Units: >1,000 HP Compression Units: <1,000 HP Fleet Horsepower Profile1 70% Permian 8% Northern Rockies 13% Eagle Ford 7% Mid-Continent % of revenue-generating horsepower as of September 30, 2025 2% Northeast Eagle Ford • 0.6 million horsepower • >900 avg. HP per unit 4.5 million fleet horsepower1 Permian • 3.0 million horsepower • >1,200 avg. HP per unit Leading contract compression provider in the lowest cost to produce U.S. basins 3.6 million Combined horsepower in the Permian and Eagle Ford 1 Fleet statistics as of September 30, 2025 80% Of Total Fleet Horsepower is Large Horsepower Units
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5 Kodiak Investment Thesis Constructive Industry Fundamentals ► Highly visible, multi-year domestic natural gas demand growth ► Tight equipment market with industry-wide capital discipline Compression Market Leader ► 4.5 million horsepower compression fleet1 ► Market leader in the Permian Robust Organic Investment Opportunities ► 2026 fleet expansion in line with LT growth target of 3% - 4% ► Compelling returns on new equipment deployments Stable and Growing Cash Flow ► Fixed-revenue contracts with inflation escalators ► No direct commodity price exposure Attractive Shareholder Return Program ► 5.8% dividend yield; 20% y/y dividend increase in 2025 2 ► $65 million available on share repurchase program3 1 Fleet statistics as of September 30, 2025 2 Dividend yield based on stock price as of November 7, 2025 and the third quarter 2025 dividend of $0.49 per share annualized 3 As of November 7, 2025
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6 Third Quarter 2025 Highlights $40 $32 Q2 2025 Q3 2025 $19 $32 Q3 2024 Q3 2025 $116 $117 Q2 2025 Q3 2025 $103 $117 Q3 2024 Q3 2025 $178 $175 Q2 2025 Q3 2025 $168 $175 Q3 2024 Q3 2025 ~98% Fleet utilization2 ~60K HP New unit horsepower added in the quarter Revenue-Generating HP (in 000)2 Third Quarter HighlightsAdjusted EBITDA1 ($M) Discretionary Cash Flow1 ($M) Adjusted Net Income¹ ($M) 3,259 3,286 4,225 4,260 4,250 4,284 4,297 4,351 Q4 2023 Q1 2024 Q2 2024 Q3 2024 Q4 2024 Q1 2025 Q2 2025 Q3 2025 ► Increased fleet utilization to 97.6% ► Reported Adj. EBITDA of $174.7 million, including ~$5 million of extraordinary professional fees ► Generated Contract Services Adj. Gross Margin of 68.3% ► Repurchased ~$50 million of stock during Q3 2025 ► Raised quarterly dividend 9% to $0.49 per share 1 Adjusted EBITDA, adjusted gross margin percentage, adjusted net income, and discretionary cash flow are non -GAAP financial measures, see press release dated November 4, 2025, for reconciliations 2 Fleet statistics as of September 30, 2025
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7 Investing In Our People Hiring the Right People + Providing the Tools & Knowledge = Superior Execution ► Offers ~40 technical training courses ► Utilizes virtual reality training modules ► Constructing new 37,000 square foot hands-on training facility BEARS Academy ► Four-month internship program for entry level field technicians ► Weekly rotations provide exposure to various operations & geographies ► High conversion to full time roles IGNITE Development Program Building Experience And Real Skills ► Two-year rotational program to develop future leaders ► Provides exposure to many different aspects of the business ► Potential to fast-track to a management role AMPED Development Program
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8 Continuous Innovation Kodiak Connect Monitoring Platform ► Monitoring telemetry on 120+ data points per unit ► AI-enabled sensors and failure detection models ► Ability to track performance trends over time Kodiak Fleet Reliability Center ► Staffed 24/7 with former operations leaders and field technicians ► Ability to monitor every compression unit in Kodiak’s fleet ► Constant communication with operations team to identify potential problems before they lead to downtime
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9 4.8 4.5 3.9 0.9 0.6 0.5 0.5 0.4 0.4 0.4 0.3 0.3 0.3 0.3 1.0 HP in millions U.S. Compression Market U.S. Compression Market2 HP (in millions) % Outsourced (contract compression) 16 26% Insourced (end user-owned) 45 74% Total 61 100% Top 3 U.S. Contract Compression Providers = ~70% of the outsourced market1 Other 1 Total fleet; Source: Spears & Associates Report: The Upstream Gas Compression Market as of July 2025 ; public filings as of November 7, 2025 and company reports 2 Installed compression; Source: Spears & Associates Report: The Upstream Gas Compression Market as of July 2025
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10 $16.60 $22.73 Q4 2020 Q3 2025 $ per HP Compression Industry Tightness $1,111 $495 $881 Average 2017-2019 Average 2020-2021 Average 2022-2024 $ Millions (per year) Compression CapEx is Below Historical Levels...1 86% Q4 2020 95% Q3 2025 ~$800 ~$1,200 2017 2025E $ per HP ...While Costs Have Risen2 1 Company reports and management estimates as of November 7th; capital spending includes AROC, CCLP, KGS, NGS and USAC 2 Management estimates 3 Calculated as the weighted average utilization rate as of period end for AROC, CCLP (Q4 2020 only) KGS, NGS, and USAC. NGS re flects Q2 2025 rate. 4 Calculated as the weighted average price $/HP/month during the quarter for AROC, KGS, NGS and USAC. NGS reflects Q2 2025 $/H P/Month Increase in Industry Utilization Rate3 Increase in Industry Pricing4
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11 LNG is Primary Driver of Gas Growth - 5 10 15 20 25 30 35 2024 2025 2026 2027 2028 2029 2030 Bcf/d ~3 Bcf/d U.S. LNG capacity added in 2025 U.S. LNG Capacity at YE 2024 ~14 Bcf/d ~13 Bcf/d U.S. capacity additions through 2030 Source: Goldman Sachs Upcoming Liquefaction Projects, company reports and Kodiak Fundamentals Team
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12 Power is Secondary Driver of Gas Growth 1 Bloomberg NEF: AI Data Centers Fuel Quicker Growth in Power Demand 2 Goldman Sachs 3 EIA Monthly Electric Generator Inventory Report September 2025 4 EIA and Raymond James Power, Industrial & Commercial Demand 5 Bcf/d 2024-2030 Gas Demand Growth >10% CAGR through 2030 in electric demand from new datacenters1 Data center power to be sourced by natural gas through 20302 ~60% of new natural gas power plants built by 20303 ~40 Gigawatts 142 323 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 Rapidly Increasing Data Center Demand Presents Upside to Forecast U.S Data Center Demand Growth 3.9 4.0 5.2 2010 2023 2030 U.S. Electric Demand Growth in thousand Terawatt hours4in Terawatt hours1 0.2% 3.8%Compounded Annual Growth Rate
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13 Compression Growth Driven by Gas Growth 74 73 75 84 93 92 95 99 104 103 106 46 61 20 30 40 50 60 70 20 40 60 80 100 120 140 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 million HPBcf/d 61 million HP / 106 Bcf/d = ~600K HP per Bcf/d 2024 - 2030 Demand Growth in Bcf/d U.S. LNG Demand Power/ Other Demand 5 16 Mexico 2 23 Bcf/d midpoint =X U.S. Gas Demand Growth Through 2030 23 Bcf/d Compression Intensity ~600K HP per Bcf/d ~14 million Incremental HP Needed by 2030 U.S. Compression Intensity1 1 EIA Short Term Energy Outlook August 2025, Spears & Associates: The Upstream Gas Compression Market: July 2024 and July 2025, and Kodiak Fundamentals Team U.S. Gas Demand Growth
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14 0 2 4 6 8 10 0 5 10 15 20 25 30 MMBbls/d Bcf/d Permian Gas Positioned for Long-Term Growth Permian Basin GulfofAmerica >20% More gas per barrel of oil vs 2019 Pipeline4 Capacity (Bcf/d) Start Date Gulf Coast Exp. 0.6 1H 2026 Blackcomb 2.5 2H 2026 Hugh Brinson 1.5 2H 2026 Eiger Express 2.5 2H 2028 Desert Southwest 1.5 2H 2029 Total >8.5 YE 2029 ~10% CAGR gross gas production since 20202 Increased drilling activity in higher GOR areas Permian Production3 Takeaway Projects4 1 Source: Baker Hughes rig count as of November 7, 2025 2 Source: EIA Short Term Energy Outlook as of November 7, 2025 3 Sourced from EIA Short-Term Energy Outlook. Gas to Oil ratio is defined as Total Gas / Total Oil 4 Company reports 3.1x 4.2x >45% of domestic drilling activity located in the Permian Basin1 Oil production Natural gas
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15 Permian Compression Intensity 1 Centralized Gas lift Gathering Systems Gas Processing Residue Compression Permian Compression Requirements Long Haul Pipeline 02 03 Dry Gas Basins 01 Gathering Compression Long Haul Pipeline 04 01 >3x Compression required by Permian Basin vs Dry Gas Basins
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16 Premier Customer Base >50% Revenue from top 10 customers1 Relationships with top customers Long-Term>60% Revenue from investment grade rated customers1 High Quality Customer Base2 1 Based on total Contract Services revenues for 2024 2 As of September 30, 2025
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17 Contract Structure Supports Cash Flow Fixed monthly revenue with multi-year terms 01 Annual inflation index adjustments 02 Advance billing improves working capital cycle 03 98% mechanical availability guarantee 04 Customer bears mobilization and demobilization costs 05 14%86% HP on Month-to-Month Contract Term HP with Remaining Contract Term Percent of Fleet HP on Term1 Multi-Year Contract Terms 1 As of September 30, 2025 2025 Typical Contract Term 3-5 Years
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18 Capital Allocation Framework Adjusted EBITDA Targeting upper single digit % growth annually Cash Taxes NOLs provide significant tax shield Growth CapExShareholder Returns Discretionary Cash Flow ► Compelling returns on new horsepower additions ► Targeting 3% – 4% annual growth in horsepower ► $0.49/share quarterly dividend with expected growth ► $70 million of share repurchases in 20252 Cash Interest >80% of total debt either fixed rate or swapped to fixed1 Maintenance Capex Based on predictive analytics & hours Target Leverage Ratio 3.0x – 3.5x 1 As of September 30, 2025 2 As of November 7, 2025
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19 Other Capital Expenditures ► Safety-related unit upgrades ► Operational unit upgrades ► Business systems ► Rolling stock/facilities Maintenance CapEx $315 - $355 Million 2025E CapEx 2025 Capital Plan >90% Permian focused ~1,900 HP Average horsepower per unit >40% Electric motor horsepower Full Year Capital Spending 2025E New Units Growth Capital Expenditures ► New compression units ► Methane mitigation systems ► Investments in AI
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20 3.9x 3.8x Q3 2024 Q3 2025 >80% Debt either fixed rate or swapped to fixed2 ~$1.5B Availability under ABL facility2 Strengthening Credit Profile $750 $521 $770 $630 $0 $250 $500 $750 $1,000 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 2035 ($M) ABL Facility Senior Unsecured Notes ~3.5 years Until First Debt Maturity in February 2029 Corporate Rating Ba3 BB- BB Debt to EBITDA Ratio1 Credit Ratings Debt Maturity Profile2 1 Represents Leverage Ratio as defined in ABL Credit Agreement; uses last quarter annualized adjusted EBITDA 2 Debt as of September 30, 2025
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21 Steady Business in any Commodity Price Environment Quarterly Contract Services Adjusted Gross Margin ~98% % of AGM provided by Contract Services segment1 Kodiak Contract Services Adj. Gross Margin ($M) Average WTI Crude Oil Price ($/Bbl) Average Henry Hub Price ($/MMBtu) $86 $84 $88 $89 $94 $95 $97 $104 $105 $104 $108 $112 $115 $117 $121 $126 $128 $177 $188 $187 $196 $200 $203 $46.01 $28.30 $40.82 $42.52 $57.68 $65.97 $70.75 $77.29 $94.53 $108.87 $93.75 $82.62 $76.14 $86.49 $82.25 $78.53 $76.91 $81.81 $76.43 $70.81 $71.78 $64.57 $65.78 $1.91 $1.70 $1.97 $2.51 $3.39 $2.93 $4.33 $4.76 $4.64 $7.42 $7.98 $5.60 $2.68 $2.84 $2.59 $2.92 $2.14 $2.06 $2.11 $2.44 $4.14 $3.19 $3.03 0 2 4 6 8 10 12 14 16 18 20 - 50 100 150 200 Q1 '20 Q2 '20 Q3 '20 Q4 '20 Q1 '21 Q2 '21 Q3 '21 Q4 '21 Q1 '22 Q2 '22 Q3 '22 Q4 '22 Q1 '23 Q2 '23 Q3 '23 Q4 '23 Q1 '24 Q2 '24 Q3 '24 Q4 '24 Q1 '25 Q2 '25 Q3 '25 Source: Company filings; EIA; Adjusted Gross Margin is a non-GAAP financial measure; see Supplemental Slides for reconciliation 1 Contract Services segment adjusted gross margin as a percent of total adjusted gross margin in Q3 2025
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22 Sustained Cash Flow During Price Volatility 2026 and Beyond2025 ► No commodity price exposure ► Fixed-revenue, term contracts with inflation escalators ► Fully contracted 2025 new unit capex program ► High-quality customer base; >60% investment grade rated ► >95% utilization rate industrywide ► Limited evidence of competitors building speculatively ► Strong U.S. natural gas demand fundamentals driven by LNG and power ► Long-term relationships with investment grade customers with multi-year planning horizons ► >80% of Kodiak’s contract compression horsepower is in economically advantaged basins - Permian Basin and Eagle Ford ► Long lead times for new equipment - 9 months + Business Model Supports Sustained Cash Flow in Periods of Commodity Price Volatility
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23 16.5% 11.8% 9.0% 8.3% Kodiak G&P Pipeline Compression 7.3x 7.7x 8.8x 11.3x 13.1x 15.0x Kodiak Archrock G&P Pipeline Russell 2000 S&P 500 Attractive Valuation Creating Value for Shareholders ► Valuation provides the potential for further upside ► Shareholder return program provides attractive cash return Forward Year Discretionary Cash Flow Yield1 1.2%1.4%5.8% 3.4% 6.7% 3.9% EV/2026 Adj. EBITDA1 Dividend Yield2 1 Defined as 2026 Adjusted EBITDA minus interest & taxes minus maintenance capex divided by market cap. Based on Bloomberg consensus estimates as of November 7, 2025. Compression peers consists of AROC, NGS, & USAC; G&P Peers consist of HESM, KNTK & TRGP; Pipeline peers consist of KMI & WMB. Adjusted EBITDA is a non-GAAP financial measure; see Supplemental Slides for reconciliation. 2 As of November 7, 2025
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24 $11 $42 Jan '24 Oct-25 Increasing Liquidity & Buying Back Stock Top 5 Shareholders Remaining Shareholders 84% January 2024 56% October 2025 Top 5 Shareholders (% of common shares outstanding)1 (% of common & preferred shares outstanding) 76% 66% 57% 43% 39% 35% 23% 24% 34% 43% 57% 61% 65% 77% Q1 2024 Q2 2024 Q3 2024 Q4 2024 Q1 2025 Q2 2025 Oct-25 Public / Insiders EQT HoldingsImproved Shareholder Liquidity Average Daily Trading Liquidity ($M) $110 million Stock repurchased2 1 Based on Kodiak’s share count as of October 30, 2025. Top shareholders as of November 7, 2025 per Bloomberg 2 Total share repurchases as of November 7, 2025, since Kodiak went public EQT Position
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25 Full-Year 2025 Guidance Low High Adjusted EBITDA (1) $ 700,000 $ 725,000 Discretionary Cash Flow (1)(2) $ 450,000 $ 470,000 Segment Information Contract Services Revenues $ 1,160,000 $ 1,200,000 Contract Services Adjusted Gross Margin Percentage (1) 67.0% 69.0% Other Services Revenues $ 120,000 $ 140,000 Other Services Adjusted Gross Margin Percentage (1) 14.0% 17.0% Capital Expenditures Growth Capital Expenditures $ 180,000 $ 205,000 Other Capital Expenditures $ 60,000 $ 65,000 Maintenance Capital Expenditures $ 75,000 $ 85,000 (All amounts below are in thousands except per share amounts and percentages) 1 The Company is unable to reconcile projected Adjusted EBITDA to projected net income (loss), projected Discretionary Cash Flow to projected net cash provided by operating activities, and projected Adjusted Gross Margin % to projected gross margin, the most comparable financial measures calculated in accordance with GAAP, respectively, without unreasonable efforts because components of the calculations are inherently unpredictable, such as changes to current assets and liabilities, unknown future events, and estimating certain future GAAP measures. The inability to project certain components of the calculation would significantly affect the accuracy of the reconciliations. 2 Discretionary Cash Flow assumes no change to Secured Overnight Financing Rate futures
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26 Supplemental Slides
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27 Anatomy of a Compression Unit Cooler Engine Compressor Telemetry Control Panel Skid
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28 Adjusted Gross Margin and Adjusted Gross Margin Percentage Adjusted Gross Margin and Adjusted Gross Margin Percentage are considered non-GAAP financial measures. We define Adjusted Gross Margin as revenue less cost of operations, exclusive of depreciation and amortization expense. We define Adjusted Gross Margin Percentage as Adjusted Gross Margin divided by total revenues. We believe that Adjusted Gross Margin is useful as a supplemental measure of our operating profitability. Adjusted Gross Margin is impacted primarily by the pricing trends for service operations and cost of operations, including labor rates for service technicians, volume and per compression unit costs for lubricant oils and coolants, quantity and pricing of routine preventative maintenance on compression units and property tax rates on compression units. Adjusted Gross Margin should not be considered an alternative to, or more meaningful than, gross margin or any other measure of financial performance presented in accordance with GAAP. Moreover, Adjusted Gross Margin as presented may not be comparable to similarly titled measures of other companies. Because we capitalize assets, depreciation and amortization of equipment is a necessary element of our costs. To compensate for the limitations of Adjusted Gross Margin as a measure of our performance, we believe that it is important to consider gross margin determined under GAAP, as well as Adjusted Gross Margin, to evaluate our operating profitability. Adjusted Net Income (Loss) Adjusted net income is considered a non-GAAP measure. Adjusted net income (loss) is defined as net income (loss) excluding (i) severance expenses; (ii) transaction expenses; (iii) sales tax reserve; (iv) loss on disposal of business; (v) loss (gain) on derivatives; (vi) impairment of compression equipment; and (vii) the tax effects of the adjustments. We believe adjusted net income is useful to investors because is a key measures used by our management team to evaluate our operating performance, generate future operating plans, and make strategic decisions. Adjusted net income (loss) is presented for supplemental informational purposes only and should not be considered a substitute for financial information presented in accordance with GAAP, such as revenues, net income (loss), operating income (loss) or cash flows from operating activities. Adjusted net income (loss) as presented may not be comparable to similarly titled measures of other companies. Adjusted EBITDA and Adjusted EBITDA Percentage Adjusted EBITDA and Adjusted EBITDA Percentage are considered non-GAAP measures. We define Adjusted EBITDA as net income (loss) before interest expense; income tax expense; and depreciation and amortization; plus (i) loss on extinguishment of debt; (ii) loss (gain) on derivatives; (iii) equity compensation expense; (iv) severance expenses; (v) transaction expenses; (vi) loss (gain) on sale of assets; (vii) sales tax reserve, and (viii) impairment of compression equipment. We define Adjusted EBITDA Percentage as Adjusted EBITDA divided by total revenues. Adjusted EBITDA and Adjusted EBITDA Percentage are used as supplemental financial measures by our management and external users of our financial statements, such as investors, commercial banks and other financial institutions, to assess: • the financial performance of our assets without regard to the impact of financing methods, capital structure or historical cost basis of our assets; • the viability of capital expenditure projects and the overall rates of return on alternative investment opportunities; • the ability of our assets to generate cash sufficient to make debt payments and pay dividends; and • our operating performance as compared to those of other companies in our industry without regard to the impact of financing methods and capital structure. We believe that Adjusted EBITDA and Adjusted EBITDA Percentage provide useful information because, when viewed with our GAAP results and the accompanying reconciliation, they provide a more complete understanding of our performance than GAAP results alone. We also believe that external users of our financial statements benefit from having access to the same financial measures that management uses in evaluating the results of our business. Adjusted EBITDA and Adjusted EBITDA Percentage should not be considered as alternatives to, or more meaningful than, revenues, net income (loss), operating income, cash flows from operating activities or any other measure of financial performance presented in accordance with GAAP as measures of operating performance and liquidity. Moreover, our Adjusted EBITDA and Adjusted EBITDA percentage as presented may not be comparable to similarly titled measures of other companies. Given we are a capital-intensive business, depreciation, impairment of compression equipment and the interest cost of acquiring compression equipment are necessary elements of our costs. To compensate for these items, we believe that it is important to consider both net income (loss) and net cash provided by operating activities determined under GAAP, as well as Adjusted EBITDA and Adjusted EBITDA Percentage, to evaluate our financial performance and our liquidity. Our Adjusted EBITDA and Adjusted EBITDA percentage exclude some, but not all, items that affect net income (loss) and net cash provided by operating activities, and these measures may vary among companies. Management compensates for the limitations of Adjusted EBITDA and Adjusted EBITDA percentage as an analytical tool by reviewing the comparable GAAP measures, understanding the differences between the measures and incorporating this knowledge into management’s decision-making processes. Discretionary Cash Flow Discretionary Cash Flow is considered a non-GAAP measure. We define Discretionary Cash Flow as net cash provided by operating activities less (i) maintenance capital expenditures; (ii) certain changes in operating assets and liabilities; and (iii) certain other expenses; plus (w) cash loss on extinguishment of debt; (x) severance expenses; and (y) transaction expenses. We believe Discretionary Cash Flow is a useful liquidity and performance measure and supplemental financial measure for us in assessing our ability to pay cash dividends to our stockholders, make growth capital expenditures and assess our operating performance. Our ability to pay dividends is subject to limitations due to restrictions contained in our ABL Credit Agreement, as further described elsewhere herein. Discretionary Cash Flow is presented for supplemental informational purposes only and should not be considered a substitute for financial information presented in accordance with GAAP, such as revenues, net income (loss), operating income (loss) or cash flows from operating activities. Discretionary Cash Flow as presented may not be comparable to similarly titled measures of other companies. Free Cash Flow We define Free Cash Flow as net cash provided by operating activities less (i) maintenance capital expenditures; (ii) certain changes in operating assets and liabilities; (iii) certain other expenses; and (iv) growth and other capital expenditures; plus (w) cash loss on extinguishment of debt; (x) severance expenses; (y) transaction expenses; and (z) proceeds from sale of assets. We believe Free Cash Flow is a liquidity measure and useful supplemental financial measure for us in assessing our ability to pursue business opportunities and investments to grow our business and to service our debt. Free Cash Flow is presented for supplemental informational purposes only and should not be considered a substitute for financial information presented in accordance with GAAP, such as revenues, net income (loss), operating income (loss) or cash flows from operating activities. Free Cash Flow as presented may not be comparable to similarly titled measures of other companies. Non-GAAP Financial Measures
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29 Reconciliation of Non-GAAP Financial Measures (in thousands) Q3 2024 Q2 2025 Q3 2025 Total revenues $324,647 $322,843 $322,744 Cost of operations (exclusive of D&A and SG&A) (129,291) (115,251) (116,214) Depreciation and amortization (73,452) (66,135) (66,329) Gross margin $121,904 $141,457 $140,201 Depreciation and amortization 73,452 66,135 66,329 Adjusted Gross Margin $195,356 $207,592 $206,530 Adjusted Gross Margin % 60.2% 64.3% 64.0% (in thousands) Q3 2024 Q2 2025 Q3 2025 Net income (loss) ($6,211) $39,984 ($14,197) Interest expense, net 53,991 45,755 56,406 Income tax (benefit) expense (2,184) 13,445 (6,301) Depreciation and amortization 73,452 66,135 66,329 Long-lived asset impairment 9,921 - - (Gain) loss on derivatives 20,327 - - Equity compensation expense 3,905 6,291 4,744 Severance expense1 2,243 - - Transaction expenses2 2,554 - 1,523 Sales tax reserve3 - - 27,968 Loss on disposal of business 7,024 33,349 Loss on sale of capital assets 3,352 6,606 4,881 Adjusted EBITDA $168,374 $178,216 $174,702 Net Income to Adjusted EBITDA Gross Margin to Adjusted Gross Margin Net Cash Provided by Operating Activities to DCF and FCF (in thousands) Q3 2024 Q2 2025 Q3 2025 Net cash provided by operating activities $36,878 $177,172 $113,378 Maintenance capital expenditures (21,553) (17,565) (19,765) Severance expense1 2,243 - - Transaction expenses2 2,554 - 1,523 Sales tax reserve3 - - 27,968 Change in operating assets and liabilities 84,479 (38,478) 6,637 Other4 (1,552) (4,705) 185 Discretionary Cash Flow $103,049 $116,424 $116,652 Growth capital expenditures5,6 (53,022) (37,966) (80,330) Other capital expenditures5 (12,093) (16,398) (12,202) Proceeds from sale of assets 14,556 8,230 9,343 Free Cash Flow $52,500 $70,290 $33,463 Source: Company filings; 1Represents severance expenses related to the CSI Acquisition. 2 Represents certain costs associated with non-recurring professional services, primarily related to the CSI Acquisition and secondary offerings. 3 The Company received a settlement offer with the Texas Comptroller’s office to resolve the outstanding Texas sale and use tax matters. 4 Includes non-cash lease expense, provision for credit losses and inventory reserve. 5 For the three months ended September 30, 2025, growth capital expenditures includes a $9.6 million increase in accrued capital expenditures. 6 For the three months ended September 30, 2025, growth capital expenditures includes a $1.9 million increase in a non-cash sales tax accrual on compression equipment purchases. Net Income to Adjusted Net Income (in thousands) Q3 2024 Q2 2025 Q3 2025 Net income (loss) ($6,211) $39,984 ($14,197) Severance expense1 2,243 - - Transaction expenses2 2,554 - 1,523 Sales tax reserve3 - - 27,968 Loss on disposal of business 7,024 - 33,349 Loss on derivatives 20,327 - - Tax effect of adjustments (7,186) - (17,104) Adjusted Net Income $18,751 $39,984 $31,539
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30 Reconciliation of Non-GAAP Financial Measures Source: Company filings Gross Margin to Adjusted Gross Margin for Contract Services (in thousands) Q1 2020 Q2 2020 Q3 2020 Q4 2020 Q1 2021 Q2 2021 Q3 2021 Q4 2021 Q1 2022 Q2 2022 Q3 2022 Q4 2022 Total Revenues $131,616 $123,499 $128,355 $132,259 $137,445 $142,622 $148,595 $154,408 $157,495 $162,808 $163,662 $170,992 Cost of Operations (excluding D&A) (45,899) (39,045) (39,897) (43,110) (43,269) (47,929) (51,124) (50,491) (52,937) (58,336) (55,872) (58,570) Depreciation and Amortization (32,751) (38,147) (37,567) (37,167) (38,049) (39,126) (40,789) (42,081) (42,405) (43,397) (44,111) (44,550) Gross Margin $52,966 $46,307 $50,891 $51,982 $56,127 $55,567 $56,682 $61,836 $62,153 $61,075 $63,679 $67,872 Depreciation and Amortization 32,751 38,147 37,567 37,167 38,049 39,126 40,789 42,081 42,405 43,397 44,111 44,550 Adjusted Gross Margin $85,717 $84,454 $88,458 $89,149 $94,176 $94,693 $97,471 $103,917 $104,558 $104,472 $107,790 $112,422 Adjusted Gross Margin % 65.1% 68.4% 68.9% 67.4% 68.5% 66.4% 65.6% 67.3% 66.4% 64.2% 65.9% 65.7% (in thousands) Q1 2023 Q2 2023 Q3 2023 Q4 2023 Q1 2024 Q2 2024 Q3 2024 Q4 2024 Q1 2025 Q2 2025 Q3 2025 Total Revenues $177,697 $181,619 $186,673 $189,616 $193,399 $276,250 $284,313 $280,211 $288,956 $293,534 $296,970 Cost of Operations (excluding D&A) (62,770) (65,017) (65,470) (63,835) (65,882) (99,333) (96,617) (93,184) (93,235) (93,137) (94,222) Depreciation and Amortization (44,897) (45,430) (46,087) (46,455) (46,944) (69,463) (73,452) (70,413) (70,529) (66,135) (66,329) Gross Margin $70,030 $71,172 $75,116 $79,326 $80,573 $107,454 $114,244 $116,614 $125,192 $134,262 $136,419 Depreciation and Amortization 44,897 45,430 46,087 46,455 46,944 69,463 73,452 70,413 70,529 66,135 66,329 Adjusted Gross Margin $114,927 $116,602 $121,203 $125,781 $127,517 $176,917 $187,696 $187,027 $195,721 $200,397 $202,748 Adjusted Gross Margin % 64.7% 64.2% 64.9% 66.3% 65.9% 64.0% 66.0% 66.7% 67.7% 68.3% 68.3%
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