Kodiak Gas Services, Inc. (NYSE:KGS) Announces Dividend Increase - $0.49 Per Share

Key Points

• Kodiak Gas Services, Inc. announced a quarterly dividend increase to $0.49 per share, reflecting an 8.9% rise from the previous dividend of $0.45.
• The company's dividend is currently covered by earnings, but with a payout ratio of 82.9%, future coverage may be at risk if earnings decline.
• Kodiak Gas Services also approved a share buyback program totaling $50 million, indicating the board's belief that its stock is undervalued.

Kodiak Gas Services, Inc. (NYSE:KGS - Get Free Report) declared a quarterly dividend on Thursday, October 23rd. Investors of record on Monday, November 3rd will be given a dividend of 0.49 per share on Thursday, November 13th. This represents a c) annualized dividend and a yield of 5.6%. The ex-dividend date of this dividend is Monday, November 3rd. This is a 8.9% increase from Kodiak Gas Services's previous quarterly dividend of $0.45.

Kodiak Gas Services has a dividend payout ratio of 82.9% indicating that its dividend is currently covered by earnings, but may not be in the future if the company's earnings fall. Equities research analysts expect Kodiak Gas Services to earn $2.12 per share next year, which means the company should continue to be able to cover its $1.80 annual dividend with an expected future payout ratio of 84.9%.

Kodiak Gas Services Trading Down 0.6%

Shares of KGS stock opened at $35.23 on Friday. The company has a debt-to-equity ratio of 1.89, a quick ratio of 0.78 and a current ratio of 1.10. The company has a market capitalization of $3.05 billion, a price-to-earnings ratio of 39.15 and a beta of 1.32. Kodiak Gas Services has a 52-week low of $29.25 and a 52-week high of $50.43. The company has a 50-day simple moving average of $34.97 and a two-hundred day simple moving average of $34.20.

Kodiak Gas Services (NYSE:KGS - Get Free Report) last announced its earnings results on Wednesday, August 6th. The company reported $0.49 earnings per share for the quarter, topping analysts' consensus estimates of $0.46 by $0.03. The firm had revenue of $322.84 million for the quarter, compared to the consensus estimate of $335.10 million. Kodiak Gas Services had a return on equity of 10.35% and a net margin of 6.48%.The company's revenue was up 4.2% compared to the same quarter last year. During the same quarter in the previous year, the business earned $0.06 EPS. Research analysts anticipate that Kodiak Gas Services will post 1.12 EPS for the current fiscal year.

Kodiak Gas Services announced that its board has approved a share buyback program on Monday, August 11th that allows the company to buyback $50.00 million in outstanding shares. This buyback authorization allows the company to purchase up to 1.8% of its stock through open market purchases. Stock buyback programs are generally a sign that the company's board of directors believes its stock is undervalued.

About Kodiak Gas Services

Kodiak Gas Services, Inc operates contract compression infrastructure for customers in the oil and gas industry in the United States. It operates in two segments, Compression Operations and Other Services. The Compression Operations segment operates company-owned and customer-owned compression infrastructure to enable the production, gathering, and transportation of natural gas and oil.

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