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Commodities

Midstream M&A Gains Momentum as Permian, Power Demand Support Growth, RBC Says

Midstream mergers and acquisitions are accelerating as companies pursue scale and new volumes, while RBC's preferred picks offer growth tied to gas, power and Permian demand, RBC Capital Markets said in a Friday note.The Alerian Midstream Index gained 0.6% for the week ended Sep. 10, compared with a 2% decline for the S&P 500 as West Texas Intermediate crude rose about 12% to $102.48 per barrel.Year to date, the AMZ has advanced 25.5% versus a 10.9% rise for the S&P 500, outperforming utilities and real estate investment trusts by 2,473 and 1,305 basis points.The AMZ remains behind oilfield services and exploration and production stocks by 2,208 and 2,933 basis points, respectively, while Henry Hub natural gas declined about 3% to $2.83 per million British thermal units.Venture Global (VG) led RBC's coverage universe with a 7.0% weekly gain, helped by higher Dutch Title Transfer Facility prices, while Cheniere Energy (LNG) fell 4.5% after missing the latest S&P 500 rebalance.Master limited partnerships rose 0.4% over the week and outperformed C-corporations, which slipped 0.1%, while RBC estimates its coverage universe trades at 10.3 times 2027 estimated enterprise value to EBITDA.RBC said midstream deal activity has accelerated, citing ONEOK's (OKE) acquisition of Brazos Midstream's Permian Midland assets and renewed market attention on a potential Kinetik (KNTK) sale.RBC has long viewed Kinetik Holdings as an attractive acquisition target because of its Permian presence, natural gas liquids exposure and New Mexico sour-gas capabilities, which could add scale and near-term growth.Kinetik could benefit from stronger customer demand in New Mexico, including an expansion of its KL2 processing plant, which RBC expects to enter service in mid-2028.RBC also noted that external insurance capital could help finance acquisitions.The US Third Circuit Court of Appeals vacated a water-quality certificate for the Northeast Supply Enhancement project on technical and procedural grounds, sending the matter back to the New Jersey Department of Environmental Protection.Williams (WMB) does not expect the ruling to affect construction and continues to target an in-service date in the fourth quarter of 2027, while viewing the remand as a path to resolve the outstanding issues.RBC sees Kinetik well positioned for growth in the second half of 2026 and beyond as new Permian gas takeaway capacity comes online and producer interest rises across the Northern Delaware Basin.A May 2026 federal lease sale generated about $4 billion in bids, compared with the prior record of $972 million in 2018, underscoring the scale of producer interest in the Northern Delaware Basin.Kinetik Holdings has built its sour-gas handling system, giving it an advantage over new entrants because permits for acid-gas injection wells can take more than three years.RBC expects Kodiak Gas Services (KGS) to deliver about 16% annual adjusted EBITDA growth over five years, supported by Permian production, tight compression capacity and rising data-center power demand.RBC favors Targa Resources (TRGP), citing customer-backed growth projects that reduce capital-spending risk, expanded customer agreements and exposure to well-capitalized Permian producers. Rising gas-to-oil ratios could also support mid-single-digit gas growth.RBC also favors Williams, which it sees benefiting from rising power and natural gas demand through 2030 and beyond. The company targets more than 11% adjusted EBITDA growth through 2030.Midstream M&A Gains Momentum as Permian, Power Demand Support Growth, RBC Says

$KGS$KNTK$LNG$OKE$TRGP$VG$WMB
Insider Trading

Kodiak Gas Services Insider Sold Shares Worth $355,827, According to a Recent SEC Filing

Robert Michael McKee, Director, President & CEO, on September 01, 2026, sold 5,999 shares in Kodiak Gas Services (KGS) for $355,827. Following the Form 4 filing with the SEC, McKee has control over a total of 308,770 common shares of the company, with 292,590 shares held directly and 16,180 controlled indirectly.SEC Filing:https://www.sec.gov/Archives/edgar/data/1767042/000119312526380225/xslF345X05/ownership.xml

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Sectors

Sector Update: Energy Stocks Edge Lower Late Afternoon

Energy stocks were slightly lower late Thursday afternoon, with the NYSE Energy Sector Index fractionally lower and the State Street Energy Select Sector SPDR ETF (XLE) easing 0.1%.The Philadelphia Oil Service Sector Index was shedding 0.3%, and the Dow Jones US Utilities Index rose 0.3%.Front-month West Texas Intermediate crude oil fell 2.6% to $81.08 a barrel, and the global benchmark Brent crude contract shed 2.4% to $86.89 a barrel. Henry Hub natural gas futures declined 2.8% to $2.73 per 1 million BTU.In geopolitical news, the Strait of Hormuz is "under Iran's control and management," the recently appointed head of Iran's Basij paramilitary unit said Thursday, a day after President Donald Trump said the US had "total control" of the waterway, Reuters reported.US natural gas stocks rose by 36 billion cubic feet in the week ended Aug. 7, higher than the 31 billion cubic foot increase expected in a survey compiled by Bloomberg and following an increase of 33 billion cubic feet in the previous week.In corporate news, Exelon's (EXC) ComEd unit has restored power to more than 80% of customers affected by severe storms that swept through northern Illinois on Aug. 11 and 12, the company said Thursday. Exelon shares were up 0.7%.Delek Logistics Partners (DKL) shares fell past 11% after the company said it priced an underwritten public offering of 4 million units at $50 each for gross proceeds of $200 million.Kodiak Gas Services (KGS) has visibility into multiyear EBITDA growth amid rising demand across power and natural gas, RBC Capital Markets said in a note Wednesday. RBC kept an outperform rating on the stock and increased its price target to $88 from $84. Kodiak shares rose 1%.NextEra Energy (NEE) shares added 0.4%. The company said late Wednesday it signed an agreement with the US Department of Commerce and the Japanese government to fund the development and operation of up to 10 gigawatts of natural gas-powered generation in Texas and Pennsylvania.

$DKL$EXC$KGS$NEE
Sectors

Sector Update: Energy Stocks Edge Lower Thursday Afternoon

Energy stocks were slightly lower Thursday afternoon, with the NYSE Energy Sector Index decreasing 0.1% and the State Street Energy Select Sector SPDR ETF (XLE) fractionally lower.The Philadelphia Oil Service Sector Index was shedding 0.2%, and the Dow Jones US Utilities Index rose 0.3%.Front-month West Texas Intermediate crude oil fell 1.5% to $82.04 a barrel, and the global benchmark Brent crude contract shed 1.4% to $87.78 a barrel. Henry Hub natural gas futures declined 3% to $2.72 per 1 million BTU.In geopolitical news, the Strait of Hormuz is "under Iran's control and management," the recently appointed head of Iran's Basij paramilitary unit said Thursday, a day after US President Donald Trump said the US had "total control" of the waterway, Reuters reported.US natural gas stocks rose by 36 billion cubic feet in the week ended Aug. 7, higher than the 31 billion cubic foot increase expected in a survey compiled by Bloomberg and following an increase of 33 billion cubic feet in the previous week.In corporate news, Exelon's (EXC) ComEd unit has restored power to more than 80% of customers affected by severe storms that swept through northern Illinois on Aug. 11 and 12, the company said Thursday. Exelon shares were up 0.6%.Delek Logistics Partners (DKL) shares fell nearly 13% after the company said it priced an underwritten public offering of 4 million units at $50 each for gross proceeds of $200 million.Kodiak Gas Services (KGS) has visibility into multiyear EBITDA growth amid rising demand across power and natural gas, RBC Capital Markets said in a note Wednesday. RBC kept an outperform rating on the stock and increased its price target to $88 from $84. Kodiak shares rose 1.5%.Golar LNG (GLNG) shares added around 1% after it reported higher Q2 net income and operating revenue.

$DKL$EXC$GLNG$KGS
Wire

Kodiak Gas Services Has 'Highly Visible' Growth Potential, RBC Capital Markets Says

Kodiak Gas Services (KGS) has visibility into multiyear EBITDA growth amid rising demand across power and natural gas, RBC Capital Markets said in a note Wednesday.Analysts forecast a five-year EBITDA compound annual growth rate of 16% for Kodiak.The investment firm said Kodiak delivered a "solid" Q2, with adjusted EBITDA beating analyst estimates by about 2%, and management raised the low-end of its full-year adjusted EBITDa guidance range.The company has a stable cash flow profile, benefiting from a young fleet and a high percentage of contracts on terms, the firm said, adding that the tight natural gas contract compression dynamics are favorable for the company.RBC Capital Markets retained an outperform rating on the stock and increased its price target to $88 from $84.Shares of Kodiak Gas Services were up 1.4% in Thursday trading.Price: $62.94, Change: $+0.88, Percent Change: +1.42%

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Research

Piper Sandler Initiates Kodiak Gas Services at Overweight

Kodiak Gas Services (KGS) has an average rating of buy and mean price target of $83.19, according to analysts polled by FactSet.

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Research

Piper Sandler Initiates Kodiak Gas Services at Overweight

Kodiak Gas Services (KGS) has an average rating of buy and mean price target of $83.19, according to analysts polled by FactSet.

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Commodities

Baker Hughes Q2 Orders Climb YOY

Energy technology company Baker Hughes Monday said its total orders stood at $10.50 billion in Q2, a 49% jump from $7.03 billion a year earlier, as orders under the industrial and energy technology segment doubled.In the quarter ended June 30, IET orders surged year over year to $7.09 billion from $3.53 billion, led by the gas technology product line. Segment revenue steadied at $3.29 billion, data showed.Baker Hughes said the IET segment received several awards from companies, including Venture Global (VG), Cheniere Energy (LNG), Bechtel, Golar LNG (GLNG), Nigeria LNG, Dynamis Power Solutions, Kodiak Gas Services (KGS), and Saipem Nasser Saeed Al-Hajri Contracting.Meanwhile, the company's oilfield services and equipment business received lower orders in Q2, totaling $3.41 billion. This represents a 3% decline from the previous year's $3.50 billion.Segment revenue stood at $3.45 billion, 5% lower than a year earlier, according to the report.Baker Hughes said it divested Waygate Technologies to Hexagon and completed the acquisition of Chart Industries (GTLS) in July.It also entered into a commercial agreement with Mantle Reach Power to develop up to 500 megawatts of power over the next five years, advancing large-scale geothermal development in North America.

$BKR$GLNG$GTLS$KGS$LNG$VG
Commodities

Kodiak, Baker Hughes Strike Gas Turbine Deal to Power US Data Center Boom

Kodiak Gas Services (KGS) and Baker Hughes (BKR) have agreed to a multi-year deal to supply gas-turbine power-generation equipment to meet surging electricity demand from US data centers and other energy-intensive infrastructure projects, the companies said on Wednesday.The agreement creates a framework for deploying up to 1.8 gigawatts of power generation capacity, with an initial order covering about 1 GW of gas turbines and generators, scheduled for delivery by 2030.Kodiak, a provider of energy infrastructure services, said it will use Baker Hughes' power generation portfolio to expand its distributed power capabilities and support customers seeking reliable electricity supplies.The initial equipment award includes Baker Hughes' NovaLT16 and Frame 5 gas turbines, along with BRUSH Power Generation generators, which will provide the core technology for planned projects.The agreement is structured as a multi-year rolling arrangement, allowing capacity commitments to be adjusted based on data center demand, project timelines and infrastructure requirements.Kodiak Gas and Baker Hughes also plan to collaborate on technical training, spare parts availability and potential long-term service agreements for the equipment.Baker Hughes said its gas turbine and generator technologies would help customers bring new generating capacity online more quickly to meet accelerating demand from digital infrastructure.The deal comes as soaring electricity demand from artificial intelligence and data centers is driving investment in gas-fired generation, particularly in regions where grid constraints are delaying new power connections.

$BKR$KGS
Insider Trading

Kodiak Gas Services Insider Sold Shares Worth $284,993, According to a Recent SEC Filing

Cory Anne Roclawski, Executive Vice President and Chief Human Resource Officer, on July 08, 2026, sold 4,169 shares in Kodiak Gas Services (KGS) for $284,993. Following the Form 4 filing with the SEC, Roclawski has control over a total of 24,662 common shares of the company, with 24,662 shares held directly.SEC Filing:https://www.sec.gov/Archives/edgar/data/1767042/000119312526298631/xslF345X05/ownership.xml

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Commodities

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

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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Sectors

Sector Update: Energy Stocks Advance Pre-Bell Wednesday

Energy stocks were advancing pre-bell Wednesday, with the State Street Energy Select Sector SPDR ETF (XLE) up 1.7%.The United States Oil Fund (USO) was up 2.4% and the United States Natural Gas Fund (UNG) was 0.9% higher.Front-month US West Texas Intermediate crude oil was 4.8% higher at $73.81 per barrel at the New York Mercantile Exchange. Global benchmark North Sea Brent crude oil rose 5.1% to $77.91 per barrel, and natural gas futures were up 1.2% at $3.30 per 1 million British Thermal Units.Exxon Mobil (XOM) stock was up more than 1% after the company said in a filing that changes in oil prices could raise its Q2 upstream earnings by $3.5 billion to $3.9 billion, while changes in gas prices could either result in a $200 million loss or a similar gain.Petrobras (PBR) has signed a settlement agreement with Brazil's oil regulator ANP to bring 335 offshore wells into compliance with well integrity regulations by Dec. 31, 2030, according to a translation of a statement from the regulator. Shares of Petrobras were up more than 2% pre-bell.Baker Hughes (BKR) will provide power generation solutions to support Kodiak Gas Services' (KGS) expanding energy infrastructure initiatives under a new multi-year agreement, the companies said. Baker Hughes stock was up more than 1% premarket.

$BKR$KGS$PBR$UNG$USO$XLE$XOM
Commodities

Midstream Stocks Fall as Investors Weigh Iran Peace Deal, RBC Says

Midstream energy stocks fell sharply over the past week as oil prices tumbled and investors reacted to easing tensions in the Middle East, RBC analysts said in a note on Thursday.The Alerian MLP Index, a widely followed benchmark for pipeline and energy infrastructure companies, dropped 4.5% in the week ended June 17, underperforming the S&P 500, which gained 2.1%.The decline came as US crude oil prices fell 16% to about $76 per barrel following an Iran peace agreement that reduced concerns about potential supply disruptions. Natural gas prices were largely unchanged.Despite the recent pullback, midstream stocks remain among the stronger-performing energy sectors this year. The Alerian index is up 11.8% year-to-date, ahead of utilities and the broader market, though it trails gains in some oilfield services and exploration-and-production stocks.Companies with business models less exposed to commodity price swings held up relatively well during the selloff. Shares of Kodiak Gas Services, Archrock and MPLX outperformed the broader midstream sector.Venture Global was among the biggest losers, falling nearly 17% during the week. RBC said the decline reflected a sharp drop in European natural gas prices after the Iran agreement reduced concerns about global energy supplies.Beyond market performance, industry executives and policymakers gathered in Washington this week focused heavily on efforts to streamline federal permitting for major infrastructure projects, including pipelines, power transmission lines and facilities needed to support the rapid growth of artificial intelligence.RBC said conference attendees expressed cautious optimism that permitting reform could advance this year, citing support from clean-energy developers, technology companies, environmental groups and the administration, which has increasingly framed infrastructure development as a national security priority.Industry advocates are also pushing for changes to tax rules governing master limited partnerships to broaden investor participation and improve access to capital.Looking ahead, RBC said investors are likely to remain focused on how fluctuating oil and gas prices affect production activity, corporate earnings and future infrastructure investment plans.Price: $67.52, Change: $+0.97, Percent Change: +1.46%

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Insider Trading

Kodiak Gas Services Insider Sold Shares Worth $313,483, According to a Recent SEC Filing

Pedro R. Buhigas, Chief Information Officer, on June 17, 2026, sold 4,625 shares in Kodiak Gas Services (KGS) for $313,483. Following the Form 4 filing with the SEC, Buhigas has control over a total of 38,454 common shares of the company, with 38,454 shares held directly.SEC Filing:https://www.sec.gov/Archives/edgar/data/1767042/000119312526274374/xslF345X05/ownership.xml

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Research

Jefferies & Co Initiates Coverage on Kodiak Gas Services With Buy Rating, $79 Price Target

Kodiak Gas Services (KGS) has an average rating of Buy and mean price target of $82, according to analysts polled by FactSet.

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Research

Wells Fargo Initiates Kodiak Gas Services at Overweight With $93 Price Target

Kodiak Gas Services (KGS) has an average rating of buy and mean price target of $81.21, according to analysts polled by FactSet.

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Oil & Energy

Crude, NGL Firms See Firmer Q2 Outlook on Exports, Pricing Tailwinds, TPH Says

Midstream energy companies focusing on natural gas liquids and crude logistics are heading into Q2 on a constructive note, buoyed by robust volume growth, elevated commodity prices, and soaring exports, TPH Energy Research strategists said in a note on Wednesday.TPH Energy Research strategists said the observations were based on industry interactions at the Energy Infrastructure Council conference.AJ O'Donnell, analyst at TPH Energy, said a key driver for the optimistic outlook is the strengthening of liquefied petroleum gas and NGL export fundamentals.O'Donnell said midstream executives said rising engagement with global buyers, especially from Asia, who are increasingly prioritizing supply diversity and security.The soaring demand comes as the market grapples with the impact of prolonged shipping disruptions in the Strait of Hormuz, a critical global energy chokepoint. The urgent demand for alternative supply routes has shifted the industry's focus toward infrastructure expansions.TPH said while several new export dock projects are already scheduled to come online over the next few years, executives are focused on the "next wave" of capacity expansions and additional brownfield opportunities.Targa Resources (TRGP) is seeing significant optionality at its Galena Park asset, with potential expansions expected to deliver improving economics as fixed costs are spread across a larger throughput base.The energy firm noted that incremental expansions at the site would yield progressively stronger economics as fixed operational costs are distributed across a larger volume base.Optimism also extended into the crude logistics sector, where Plains All American Pipeline (PAA) is re-evaluating its strategic footprint.Following its recent divestiture of certain NGL assets, the energy firm's management is focusing heavily on organic growth opportunities across its extensive pipeline network connecting the Permian Basin to the US Gulf Coast.Meanwhile, US midstream infrastructure firms are witnessing a robust pipeline of natural gas and power-related projects alongside strengthening demand trends across North America.Kinder Morgan (KMI) is advancing its Gulf Coast Express expansion project, which is expected to come online this quarter, while also progressing its Tennessee Gas Pipeline expansion, originally sized at about 500 million cubic feet per day.Trident Energy also continues to scale its development portfolio, targeting 1.5 billion cubic feet per day of capacity in 2027 and a further 0.5 Bcf/d in 2028, with major contract awards expected to begin in late 2027.DT Midstream (DTM) reported rising Northeast US demand, with its management pointing to about 7.5 Bcf/d of largely utility-scale demand, and noting potential upside from emerging modular power requirements.TPH Energy strategists said the energy firm also highlighted the flexibility of its Midwest Incremental Supply Transportation project, which can source gas from both the Northeast and western supply basins via interconnected pipeline networks.Energy Transfer (ET) said it continues to see strong demand across its system, particularly in the Permian Basin and around Abilene, Texas, where it is positioning itself as a key provider of redundancy and integrated gas services.The company also noted uncertainty around uncontracted "behind-the-pipe" gas volumes, though such volumes remain contractually protected in the near term.On the gas distribution side, Kodiak Gas Services (KGS) plans to grow its base business by 3% to 4% while expanding its power build-out ambitions, citing a 2-gigawatt development pipeline, supported by equipment-sourcing capacity and continued inbound interest in additional megawatt-scale projects.Meanwhile, Cheniere Energy (LNG) continues to advance its Corpus Christi and Sabine Pass liquefaction expansions, Van Everen said, with sufficient commercial agreements in place to support much of the two-train development.Once completed, the projects are expected to add about 6 million metric tons per annum of LNG capacity, with the firm targeting long-term contracted levels near historical averages of about 90%.Elsewhere, Excelerate Energy (EE) pointed to project opportunities in Jamaica, Vietnam and India, as the company looks to deploy floating LNG infrastructure to support emerging gas import markets.Price: $33.66, Change: $-0.65, Percent Change: -1.89%

$DTM$EE$ET$KGS$KMI$LNG$PAA$TRGP
Wire

Kodiak Gas Likely to Benefit From Growth Prospects, RBC Says

Kodiak Gas Services (KGS) is expected to benefit from favorable compression market fundamentals amid the signing of longer-term contracts, RBC Capital Markets said in a note Friday.The note said compression operations remained strong with high utilization and higher rates thanks to favorable market dynamics.RBC analysts raised their 2026 estimate following Kodiak's Q1 results beat and updated guidance that included higher revenue and gross margin midpoints.They also raised 2027 estimate on strength in compression operations, and growth from the Power Infrastructure segment."The power opportunities are attractive with the targeted 5x EBITDA build and strong demand outlook," the analysts said.RBC maintained its outperform rating while raising its price target to $84 from $64 on higher estimates.Price: $75.48, Change: $+2.48, Percent Change: +3.40%

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Sectors

Sector Update: Energy Stocks Edge Higher Pre-Bell Thursday

Energy stocks were edging higher pre-bell Thursday, with the State Street Energy Select Sector SPDR ETF (XLE) marginally advancing.The United States Oil Fund (USO) was down 0.7% and The United States Natural Gas Fund (UNG) was 0.9% lower.Front-month US West Texas Intermediate crude oil was 0.4% lower at $100.62 per barrel at the New York Mercantile Exchange. Global benchmark North Sea Brent crude oil lost 0.6% to reach $105.02 per barrel, and natural gas futures were down 1.4% at $2.82 per 1 million British Thermal Units.Kodiak Gas Services (KGS) shares were down more than 4% after the company priced an underwritten public offering of 10.6 million shares at $71 apiece.Chevron (CVX) agreed to sell its downstream fuels and lubricants marketing businesses in Singapore, Malaysia, the Philippines, Australia, Vietnam and Indonesia, to ENEOS for $2.17 billion, ENEOS said. Chevron stock was 0.3% lower pre-bell.

$CVX$KGS$UNG$USO$XLE
Sectors

Sector Update: Energy

Energy stocks were edging higher pre-bell Thursday, with the State Street Energy Select Sector SPDR ETF (XLE) advancing by 0.1%.The United States Oil Fund (USO) was down 0.9% and the United States Natural Gas Fund (UNG) was 1% lower.Front-month US West Texas Intermediate crude oil was 0.4% lower at $100.65 per barrel at the New York Mercantile Exchange. Global benchmark North Sea Brent crude oil lost 0.6% to $105.03 per barrel, and natural gas futures were down 0.9% at $2.84 per 1 million British Thermal Units.Kodiak Gas Services (KGS) shares were down more than 4% after the company priced an underwritten public offering of 10.6 million shares at $71 per share.

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