1. Kodiak Gas Services, Inc. (NYSE:KGS)
Share Price Gains Between Feb. 2 and Feb. 9: 23.21%
Topping our list of Energy Stocks that Gained This Week is Kodiak Gas Services, Inc. (NYSE:KGS). The company is a leading provider of natural gas contract compression services in the United States, delivering efficiency and reliability across major basins.
Kodiak Gas Services, Inc. (NYSE:KGS) shot up on February 5 after the company announced that it had agreed to acquire Distributed Power Solutions, entering the fast‑growing distributed power generation market. The transaction, valued at approximately $675 million, includes $575 million in cash and around $100 million in Kodiak common stock. The deal is expected to close in April this year and includes DPS’s 384‑MW fleet of Caterpillar‑powered reciprocating engines and turbines.
Mickey McKee, President and CEO of Kodiak Gas Services, Inc. (NYSE:KGS), commented:
“Distributed power is a natural extension of our large horsepower operations skillset and meaningfully enhances our ability to deliver critical energy infrastructure solutions to our oil and gas customers, while opening new avenues of growth in the fast-growing digital infrastructure end market.
Distributed power demand is growing rapidly. We believe that the speed-to-deployment and competitive pricing relative to an increasingly constrained power grid make distributed power an attractive option for primary, long-term power. Kodiak is committed to powering our critical energy future, and I’m confident that adding DPS will further our goal to help provide safe, reliable, and affordable energy to the world.”
Kodiak Gas Services, Inc. (NYSE:KGS) also received a boost on February 6 when Barclays raised its price target on the stock from $42 to $49, while maintaining an ‘Overweight’ rating on the shares. The revision comes as the analyst believes that Kodiak’s expansion into power generation enhances its core service offering and ‘represents a key growth driver’. Similarly, on the same day, Citi raised its price target on KGS from $48 to $53 while maintaining its ‘Buy’ rating.
While we acknowledge the potential of KGS to grow, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than KGS and that has 100x upside potential, check out our report about this cheapest AI stock.
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