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Kodiak Gas Expands Power Push With Baker Hughes Turbine Deal, TPH Says

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Kodiak Gas Services (KGS) has signed a multi-year agreement with Baker Hughes Company (BKR) to secure power generation equipment that could support up to 1.8 gigawatts of capacity as the company expands its energy infrastructure business, TPH Energy strategists said in a note on Wednesday.

The framework agreement includes an initial order for about 1 GW of generation equipment, including Baker Hughes' NovaLT16 and Frame 5 gas turbines, as well as generators supplied by BRUSH Power Generation.

Deliveries are expected through 2030, with the arrangement structured to provide flexibility as data center projects develop and customer demand evolves.

Zack Van Everen, analyst at TPH Energy, said the deal strengthens Kodiak's position in the fast-growing market for behind-the-meter power solutions, where energy companies are seeking dedicated generation capacity to meet rising electricity requirements.

The Baker Hughes deal adds to Kodiak's expanding generation portfolio. TPH said that, combined with the 384 megawatts of capacity acquired through its purchase of Dura-Line Power Services and an additional 260 MW added in Q1, Kodiak's contracted generation capacity is expected to reach about 1.64 GW by 2030.

The deal moves the company closer to its target of about 2 GW of power generation capacity by the end of the decade.

Van Everen said the Baker Hughes arrangement provides Kodiak with a scalable supply chain for generation equipment while allowing the company to align project timing with customer requirements.

Under its current forecast, TPH forecasts Kodiak to reach the 2 GW generation milestone by 2030.

Price: $56.87, Change: $+2.40, Percent Change: +4.41%

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