What Kodiak Gas Services, Inc. told the SEC could break it.

Kodiak's contract-compression revenue is concentrated in a handful of large upstream/midstream operators. Its four largest customers accounted for ~32% of total revenues in 2025 (32% in 2024, 33% in 2023), and a single customer accounted for 14.1% of total revenues in 2025 (up from 13.4% in 2024 and 11.7% in 2023). The customers are not named but are described as S&P 500, investment-grade-rated companies active in the Permian Basin. Loss of, or a slowdown by, any significant customer could have a material adverse effect on Kodiak's business and cash flows.

“For the years ended December 31, 2025, 2024 and 2023, our four largest customers, which are all investment-grade counterparties, accounted for approximately 32%, 32%, and 33%, respectively, of our total revenues. One customer accounted for 14.1%, 13.4% and 11.7% of total revenues in 2025, 2024 and 2023, respectively.”

Kodiak's operations are geographically concentrated: as of December 31, 2025, approximately 82.8% of its compression assets were deployed in the Permian Basin and Eagle Ford Shale. This makes Kodiak disproportionately exposed to regional supply/demand factors, changed governmental regulations, curtailment of production, weather and infrastructure constraints specific to those two basins, any of which could reduce revenue and require asset impairments.

“As of December 31, 2025, approximately 82.8% of our compression assets were deployed in the Permian Basin and Eagle Ford Shale.”

Kodiak depends on a limited number of suppliers for the components used to build and maintain its natural-gas compression units, and some of those suppliers manufacture the components Kodiak purchases in a single facility. Damage to such a facility, a vendor switch, or an inability to purchase compression equipment or components on a timely basis could cause significant delays in delivery of completed compression units and impair Kodiak's ability to meet customer demand.

“Some of these suppliers manufacture the components Kodiak purchases in a single facility, and any damage to that facility could lead to significant delays in delivery of completed compression units to Kodiak.”

Kodiak flags that its financial results could be significantly impacted by uncertainty in U.S. trade policy, including changes in tariffs, trade agreements or other trade restrictions. As a buyer of natural-gas compression units, engines and components, tariffs on imported equipment and parts (or on the inputs its OEM suppliers use) raise its capital and maintenance costs and can extend delivery lead times for new and overhauled compression fleet.

“Kodiak's financial results could be significantly impacted by uncertainty in U.S. trade policy, including uncertainty surrounding changes in tariffs, trade agreements or other trade restrictions.”