Kodiak Gas Services and the Strategic Combination of Compression and Power

Oilfield service companies are pushing into power. Perhaps no one is pairing power with their core offering more cleanly than Kodiak Gas Services.

Chad Lenamon and Turner Phipps invited me to Kodiak’s leadership offsite on Tuesday to talk through the 15-year forward trajectory of natural gas compression alongside the outlook for distributed power.

It’s an exciting time for Kodiak. They just bought Distributed Power Solutions and are leaning hard into the distributed power domain.

📊 I walked through a detailed forecast of US natural gas production out to 2040, with conservative, steady, and aggressive scenarios. 

The takeaway: gas compression markets should grow robustly regardless of which scenario plays out.

Then the power story is as you’d imagine. 

⚡ We talked through the challenges around introducing new firm power capacity at grid-scale, challenges that open an enormous opportunity for behind-the-meter solutions.

Diving into Kodiak’s performance and stated strategy, I emphasized the importance of safe, fast, high-quality execution in a rapidly expanding market.

New announcements at the intersection of oilfield services and power arrive nearly every week now. 

Kodiak’s move is notable because it’s such a seamless augmentation of their existing service line with an adjacent offering. 

And the existing line is profoundly healthy, and will only strengthen with time.

There’s a lot to celebrate at Kodiak. 

There are also considerable challenges ahead, particularly around focus in the face of abundant opportunities.

An absolute blast spending time with such a proud, plugged-in group.