Natural Gas Services Group, Inc. · NYSE:NGS
Natural Gas Services — Q1 2025 Earnings Presentation
19 slides from Natural Gas Services's earnings presentation, May 13, 2025
Slide 1: Performance Under Pressure
PERFORMANCE UNDER PRESSURE INVEST OR PRESEN TATION | MAY 2025
Slide 2: Disclaimer and Forward-Looking Statements
Disclaimer and Forward-Looking Statements Forward-Looking Statements This Presentation includes forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. All statements, other than state
Slide 3: Overview
Overview Ticker (NYSE): NGS ▪ Natural Gas Services Group, Inc. (“NGS”) is a premier provider of natural gas Founded: December 1998 compression equipment to the energy industry. IPO: October 2002 ▪ The company rents, operates, and maintains compression equipment for use in oil and natural gas product
Slide 4: What is Natural Gas Compression?
What is Natural Gas Compression? Strategic Drivers of Rental The extraction of natural gas from a well or Compression Business pipeline, compressing it to a desired pressure and flow, and injecting it into a system. ▪ Natural gas compressors are used in various applications Customers do not need to
Slide 5: Company Highlights
Company Highlights NGS has a fleet of large, medium, and small horsepower units with a significant majority of revenue derived from units in the Permian Basin Fleet Highlights Revenue by Basin % of rental revenue YTD 2025 ▪ HP Utilization: 82% Total Rented Horsepower HP (000s) % <1% Antrim Shale 4%
Slide 6: Customer Relationships
Customer Relationships ▪ Key customers have strong credit profiles; significant majority of revenue derived from major E&P customers ▪ 75% of monthly rental revenue is under term; those units have a weighted average remaining tenor of 2.4 years ▪ New units are generally pre-contracted, with a custom
Slide 7: Investment Highlights
Investment Highlights A Premier Compression Opportunity with Multiple, Compelling Growth Paths and Value Levers Attractive Industry Recurring Rental Industry-Leading Fundamentals Business Technology ▪ Oil production is stable and projected to ▪ Long-term contracts ▪ SMART System = Improves run time
Slide 8: Attractive Industry Fundamentals
Attractive Industry Fundamentals Oil production is stable and projected to continue to grow with greater need for compression ▪ The Permian Basin has been the main engine to drive U.S. oil production to world leadership ▪ Oil production is expected to continue to grow with most of that growth coming
Slide 9: Recurring Rental Business
Recurring Rental Business Long term contracts: Stable cash flows: Resilience to commodity price swings: ▪ Initial terms for rental units range ▪ Compression assets are “sticky”—once on a site, ▪ The rental compression industry is directly from 6-60 months there are material switching costs (shutdown
Slide 10: Industry-Leading Technology
Industry-Leading Technology ▪ NGS compression assets are differentiated from competition through the use of proprietary System Management and Recovery Technology (“SMART”) – SMART software reduces unplanned shutdowns and increases productivity by 5% to 8% ▪ eComp works with existing equipment to red
Slide 11: Proven Growth with Conservative Leverage
Proven Growth with Conservative Leverage NGS is growing faster and has lower leverage yet trades at a material discount to its peers. This creates a compelling equity investment story. Adjusted EBITDA Growth (2022-2024 CAGR) 54% 28% 24% 17% NGS KGS AROC USAC Note: Market prices as of May 9, 2025. Fi
Slide 12: Growth Opportunities and Value Levers
Growth Opportunities and Value Levers Fleet Asset Fleet Accretive Optimization Utilization Expansion M&A ▪ Opportunity for targeted price ▪ Increase utilization of the existing ▪ Pre-contract units with strategic ▪ Pursue value-adding acquisitions increases due to inflation and high fleet customers
Slide 13: 2025 Guidance
2025 Guidance Metrics: Low High FY25 Adjusted EBITDA $74 million $79 million FY25 Growth Capital Expenditures $95 million $120 million FY25 Maintenance Capital Expenditures $10 million $13 million Target Return on Invested Capital At least 20% 13 March 2 025
Slide 14: Investment Highlights Summary
Investment Attractive Industry Fundamentals Highlights Summary Recurring Rental Business Industry-Leading Technology Proven Growth with Conservative Leverage Growth Opportunities and Value Levers 14 March 2 025
Slide 15: Thank You
Investor Relations Contact: Anna Delgado 432-262-2753 THANK YOU ir@ngsgi.com Corporate Address 404 Veterans Airpark Lane, Suite 300 Midland, Texas 79705 INVEST OR PRESEN TATION | March 2025
Slide 16: Appendix: Management Bios
Appendix Management Bios Justin C. Jacobs Brian L. Tucker Ian M. Eckert John A. Rowell Chief Executive Officer, Director President & Chief Operating Officer Chief Financial Officer Vice President, Technical ▪ Joined NGS as CEO in February ▪ Joined NGS as President and ▪ Joined NGS as Chief Financial
Slide 17: Appendix: Summary Income Statement
Appendix Summary Income Statement: FYE 12/31/21 through 12/31/24 and LTM 3/31/25 17 March 2 025
Slide 18: Appendix: Non-GAAP Financial Measure Bridges
Appendix Non-GAAP financial measure bridges: FYE 12/31/21 through FYE 12/31/24 and LTM 3/31/25 18 March 2 025
Slide 19: Appendix: Non-GAAP Bridges Q1 2025 vs. Q1 2024
Appendix Non-GAAP financial measure bridges: Q1 2025 vs. Q1 2024 19 March 2 025
Natural Gas Services Group — Q1 2025 Earnings Presentation on 6ix