Financial Data and Key Metrics Changes - Rental revenue reached a quarterly record of $38.9 million, a 15% increase year-over-year and a 2% sequential increase [6][20] - Adjusted EBITDA for the quarter was $19.3 million, marking a 14% increase compared to the first quarter of the previous year and a 7% sequential increase [7][22] - Net income for the quarter was $4.9 million, or $0.38 per diluted share, compared to $5.1 million, or $0.41 per diluted share in the prior year [21] - Total revenue for Q1 2025 was $41.4 million, a 12% increase from $36.9 million in Q1 2024 [20] Business Line Data and Key Metrics Changes - Adjusted rental gross margin was 61.9%, an increase of 80 basis points year-over-year and 150 basis points sequentially [21] - Rented adjusted gross margin reached 61.9%, marking one of the highest levels achieved in the past decade [21] Market Data and Key Metrics Changes - Natural gas prices are currently hovering in the mid-threes after peaking above four, with forecasts showing potential upside due to LNG export growth and new pipeline projects [10] - The company has observed modest CapEx reductions from customers, but these have not materially impacted its business [9] Company Strategy and Development Direction - The company is focusing on three growth and value drivers: asset utilization, fleet expansion, and mergers and acquisitions [11] - There is a strong emphasis on customer diversification, with the largest customer accounting for 46% of revenue, down from 54% in the previous fiscal year [15] - The company is maintaining its growth CapEx guidance of $95 million to $120 million, heavily weighted towards the second half of the year [29] Management's Comments on Operating Environment and Future Outlook - Management remains confident in the ability to perform despite market volatility and has not seen significant changes in the demand environment [35] - The company is cautiously optimistic about the future, with ongoing discussions about growth in 2026 and a strong pipeline of contracted units [5][9] - Management is closely monitoring macroeconomic conditions and their potential impact on the business [28] Other Important Information - The company ended the quarter with $168 million outstanding on its revolving credit facility, with a leverage ratio of 2.18 times [23] - Significant progress has been made in monetizing an $11 million income tax receivable, which is expected to be collected in the near future [12] Q&A Session Summary Question: Current demand environment and volatility - Management indicated that there has not been a significant change in the demand environment, with 2025 contracts essentially locked in and ongoing discussions for 2026 growth [35] Question: Gross margins and unusual factors - Management explained that the increase in gross margins is consistent with the mix of high horsepower units and that some natural volatility is expected [38][40] Question: Plans for monetization of assets - Proceeds from monetization efforts will primarily be used to pay down debt and fund organic growth initiatives [47] Question: Impact of crude oil volatility on smaller compression providers - Management noted that while crude oil prices primarily affect large horsepower, there are modest positive trends for small horsepower driven by natural gas prices [54] Question: Lead times for engines and frames - Lead times remain unchanged, with engines taking approximately six to nine months and compressor frames taking up to twelve months [58]

Natural Gas Services (NGS) came out with quarterly earnings of $0.38 per share, beating the Zacks Consensus Estimate of $0.27 per share. This compares to earnings of $0.41 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of 40.74%. A quarter ago, it was expected that this maker of natural gas compression equipment and industrial flare systems would post earnings of $0.27 per share when it actually produced earnings of $0.29, deliv ...

Revenue Performance - Total revenue for Q1 2025 increased by 12% to $41.4 million compared to $36.9 million in Q1 2024, driven by higher rental revenues [10] - Rental revenue reached $38.9 million in Q1 2025, representing a 15% year-over-year increase and a 2% sequential increase [6] - Total revenue for Q1 2025 was $41,383,000, an increase of 12.0% from $36,907,000 in Q1 2024 [36] Profitability Metrics - Adjusted EBITDA for Q1 2025 was $19.3 million, a 14% increase year-over-year and a 7% increase sequentially [15] - Net income for Q1 2025 was $4.9 million, or $0.38 per diluted share, compared to $5.1 million, or $0.41 per diluted share, in Q1 2024 [13] - Operating income for Q1 2025 was $9,507,000, slightly up from $9,319,000 in Q1 2024, reflecting a 2.0% increase [36] - Net income for Q1 2025 decreased to $4,854,000, down 4.8% from $5,098,000 in Q1 2024 [36] - Earnings per share (diluted) for Q1 2025 was $0.38, down from $0.41 in Q1 2024 [36] Cash Flow and Expenses - Cash flows from operating activities for Q1 2025 were $21.3 million, significantly higher than $5.6 million in the same period of 2024 [14] - Cash provided by operating activities significantly increased to $21,267,000 in Q1 2025, compared to $5,609,000 in Q1 2024 [38] - Total cost of revenues for Q1 2025 was $17,127,000, up 8.4% from $15,794,000 in Q1 2024 [36] - Selling, general and administrative expenses rose to $5,378,000 in Q1 2025, an increase of 14.4% from $4,702,000 in Q1 2024 [36] - The company incurred interest expense of $3,170,000 in Q1 2025, compared to $2,935,000 in Q1 2024, reflecting an increase of 8.0% [36] Guidance and Future Outlook - The company raised its full-year 2025 Adjusted EBITDA guidance to a range of $74 million to $79 million, reflecting strong business momentum [4] - The company anticipates growth capital expenditures of $95 million to $120 million for 2025, primarily for new units under contract [5] - The company is focused on capitalizing on opportunities in the compression industry, with forward-looking statements regarding EBITDA growth and capital expenditures [29] Asset and Liability Management - Total assets increased to $501,691,000 as of March 31, 2025, up from $492,528,000 at the end of 2024 [34] - Current liabilities rose to $22,445,000 as of March 31, 2025, compared to $17,358,000 at the end of 2024, indicating increased short-term obligations [34] - The company reported a retained earnings increase to $156,362,000 as of March 31, 2025, up from $151,508,000 at the end of 2024 [34] Strategic Focus - The company is focused on fleet optimization, asset utilization, and potential mergers and acquisitions to drive growth [9] - The rented horsepower fleet is expected to increase by approximately 90,000 horsepower, an 18% increase compared to year-end 2024 [5] Risks and Challenges - The company acknowledges risks including oil and gas price volatility and competition, which could impact future performance [30] Conference Call Announcement - The company plans to host a conference call on May 13, 2025, to discuss fourth-quarter and year-end financial results, indicating ongoing transparency with investors [26]

Midland, Texas, May 12, 2025 (GLOBE NEWSWIRE) -- Natural Gas Services Group, Inc. (“NGS” or the “Company”) (NYSE:NGS), a leading provider of natural gas compression equipment, technology, and services to the energy industry, today announced financial results for the three months ended March 31, 2025. The Company also raised the high-end of its full-year 2025 Adjusted EBITDA guidance to $79 million, citing continued strength in its business and growing demand across its fleet. First Quarter 2025 Highlights R ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended March 31, 2025 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from ______ to ______ Commission File Number 1-31398 NATURAL GAS SERVICES GROUP, INC. (Exact name of registrant as specified in its charter) Colorado 75-2811855 (State or oth ...

Core Insights - Natural Gas Services Group, Inc. (NGS) appointed Anthony Gallegos to its Board of Directors on April 1, 2025, filling the vacancy left by David Bradshaw's retirement in December 2024 [1][2] Company Overview - NGS is a leading provider of natural gas compression equipment, technology, and services to the energy industry, focusing on renting, operating, and maintaining natural gas compressors for oil and gas production and processing facilities [4] - The company also designs and assembles compressor units for rental and provides aftermarket services, including call-out services on customer-owned equipment and commissioning of new units [4] - NGS is headquartered in Midland, Texas, with additional facilities in Tulsa, Oklahoma, and service locations in major oil and natural gas producing basins across the U.S. [4] Leadership Insights - Anthony Gallegos brings over 30 years of experience in the offshore, international, and U.S. land drilling business, currently serving as President and CEO of Independence Contract Drilling, Inc. since October 2018 [2][3] - His previous roles include executive positions at Sidewinder Drilling Company, Scorpion Offshore Ltd., Transocean Offshore, Atwood Oceanics, and Ensco, showcasing a diverse background in operations, marketing, and corporate planning [2][3] - Gallegos expressed enthusiasm for leveraging his experience to drive growth, profitability, and an improved customer experience at NGS [2]

Midland, Texas, April 03, 2025 (GLOBE NEWSWIRE) -- Midland, Texas, April 3, 2025 – Natural Gas Services Group, Inc. (“NGS” or the “Company”) (NYSE: NGS), a leading provider of natural gas compression equipment, technology, and services to the energy industry, announced that its Board of Directors (the “Board”) appointed Anthony Gallegos to the Board on April 1, 2025. Mr. Gallegos fills the position vacated by David Bradshaw in connection with his retirement from the Board in December 2024. "On behalf of the ...

Financial Data and Key Metrics Changes - Revenue for Q4 2024 was $40.7 million, up 12% year-on-year and effectively flat sequentially compared to Q3 2024 [31] - Rental revenue for Q4 2024 was $38.2 million, reflecting a year-on-year increase of 21% and a sequential increase of 2% [31] - Adjusted EBITDA for Q4 2024 was $18 million, an increase of $1.7 million year-on-year and roughly flat sequentially [34] - Net income for Q4 2024 was $2.9 million, up 68% year-on-year, resulting in $0.23 diluted earnings per share [33] - Total adjusted gross margin for Q4 2024 was $23 million, increasing year-on-year and sequentially [31][32] Business Line Data and Key Metrics Changes - Rented horsepower increased to 491,756 at the end of 2024, up 17% from 420,432 at the end of 2023 [34] - Horsepower utilization improved to 82.1% in Q4 2024 compared to 80.8% in the prior year [34] - Rental adjusted gross margin in 2024 was 60.5%, approximately 650 basis points higher than 2023 [12] Market Data and Key Metrics Changes - Natural gas prices increased from around $3 to $4 since the last earnings call, indicating a more bullish market [17] - Oil WTI prices remained around $67 to $68 per barrel, showing volatility but no significant change since the last report [15] Company Strategy and Development Direction - The company is focusing on optimizing its fleet and increasing the utilization of existing assets, having reduced accounts receivable by $23.6 million [22][36] - Plans for significant increases in large horsepower rental fleet based on secured contracts for 2025 and 2026 [27] - The company is evaluating M&A opportunities to improve competitive positioning and returns [28][29] Management's Comments on Operating Environment and Future Outlook - Management expressed cautious optimism regarding the economic environment and its impact on oil prices, monitoring conditions closely [16] - The company expects continued growth in adjusted EBITDA for 2025, guiding to a range of $74 million to $78 million [39] - Management highlighted the importance of customer diversification, with a key customer expected to become the second-largest by revenue in 2025 [28] Other Important Information - Capital expenditures for 2024 totaled $71.9 million, with $60.5 million allocated for growth CapEx [37] - The company ended Q4 2024 with $170 million outstanding on its revolving credit facility, maintaining compliance with financial covenants [35] Q&A Session Summary Question: Clarification on guidance and EBITDA projections - Management acknowledged the difficulty in predicting unit deployment timing but confirmed that the guidance provided is reasonable [54][56] Question: Timing for placing orders for 2026 deliveries - Management indicated that orders for 2026 are being placed throughout the year, with no current plans for 2027 orders [62][63] Question: Dollar-per-horsepower pricing trends - Management noted that while prices have increased significantly in recent years, the rate of increase is flattening [70] Question: M&A opportunities and geographic focus - Management stated that potential M&A opportunities are not limited to specific geographies but are influenced by overall market conditions [72] Question: Margin performance and future expectations - Management expects a more stable margin profile moving forward, with less dramatic increases due to the fleet mix [76] Question: Lead times for components and capital expenditures pacing - Management confirmed that lead times for engines remain long, and capital expenditures will be more heavily weighted towards the second half of the year [86][90] Question: Demand environment for oil and electric drive units - Management indicated that while there is strong demand for compression, the focus is on 2026 due to lead times for new units [94][96] Question: Plans for the Tulsa facility and outsourcing fabrication - Management clarified that there are no plans for expansion at the Tulsa facility, and most fabrication will be outsourced to third-party fabricators [104][107]

Natural Gas Services Group, Inc. (NYSE:NGS) Q4 2024 Results Conference Call March 18, 2025 8:30 AM ET Company Participants Anna Delgado - IR Justin Jacobs - CEO Ian Eckert - Chief Financial Officer Conference Call Participants Hale Hoak - Hoak & Co. John Daniel - Daniel Energy Partners Jim Rollyson - Raymond James Rob Brown - Lake Street Capital Operator Good morning, everyone, and welcome to the Natural Gas Services Group Incorporated Quarter 4 Earnings Call. At this time, all participants are in listen-on ...

Natural Gas Services (NGS) came out with quarterly earnings of $0.29 per share, beating the Zacks Consensus Estimate of $0.27 per share. This compares to earnings of $0.13 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of 7.41%. A quarter ago, it was expected that this maker of natural gas compression equipment and industrial flare systems would post earnings of $0.23 per share when it actually produced earnings of $0.40, delive ...