Kodiak Gas Services
Kodiak Gas Services is being recognized with a 2021 Energy ESG Top Performers Award in the private midstream category.
Environmental accomplishments:
Being a good corporate citizen has been a part of Kodiak Gas Services’ mission since the company was founded in 2010 and set out to become the leading contract compression services provider in the U.S. Today, Kodiak is the third largest contract compression services provider supplying more than 2.9 million in revenue-generating horsepower to the nation’s most productive oil and gas basins.
Kodiak has developed a new greenhouse-gas (GHG) emission and real-time operations monitoring system, which the company began piloting in fourth-quarter 2021. The new product actively monitors and reports emissions and streamlines efficiency for the company’s compression assets. The new system will provide Kodiak with comprehensive views of all operational and production data captured through the 150-plus sensors on its equipment.
This new system offers Kodiak’s technicians, management and clients the ability to monitor operational data in real time and enhance its runtime guarantee by identifying potential issues before they occur and thereby reducing potential blow-down events associated with unplanned downtime. And with ESG initiatives front and center for the industry, this technology eliminates the guess work for its customers and drastically increases the efficacy of the data related to GHG levels reported by them.
Societal efforts:
Kodiak is focused on being a force for good, backed by actions with impact: philanthropy, volunteerism, educational partnerships, workforce development and more.
While COVID-19 impacted the company’s giving and volunteerism activities due to social distancing requirements, Kodiak was still able to execute its mission for giving by supporting organizations that create educational opportunities, assist children’s causes and veterans.
Governance achievements:
As a privately held company, Kodiak is not required to externally report on the company’s ESG policies and initiatives. However, in 2020, the company embarked on a journey to formalize Kodiak’s ESG commitment. In that same year, the company completed a robust materiality assessment process that incorporated internal and external stakeholder engagement, including peer reviews, to validate and prioritize the ESG topics most important to its business and its stakeholders. The outcome was Kodiak’s inaugural sustainability report that is the first step in building a robust ESG program that is rooted in transparency, corporate goodwill, authenticity and leadership.
With no standardized ESG reporting structure, Kodiak focused on building an ESG framework that included a high-level commitment statement, clear areas of impact related to each ESG pillar, supporting data and information, and initiatives to demonstrate authenticity. In Kodiak’s report it outlined three GHG emissions targets, including a 50% reduction in methane emissions, by year-end 2026; 80% of waste will be recycled by year-end 2023; all employees complete DEI training by year-end 2021; and 45% reduction in total recordable incident rate by 2024.