Natural Gas Services Group, Inc. · NYSE:NGS

Natural Gas Services — Investor Presentation (May 2024)

16 slides from Natural Gas Services's investor presentation, May 30, 2024

  1. Slide 1: Investor Presentation May 2024: Performance Under Pressure

    I N V E S T O R P R E S E N T A T I O N | M A Y 2 0 2 4 PERFORMANCE UNDER PRESSURE

  2. Slide 2: Disclaimer and Forward-Looking Statements

    M a y 2 0 2 4 Disclaimer and Forward-Looking Statements 2 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,

  3. Slide 3: Overview

    M a y 2 0 2 4 Overview  Natural Gas Services Group, Inc. (“NGS”) is a premier provider of natural gas compression equipment to the energy industry.  The company rents, operates, and maintains compression equipment for use in oil and natural gas production applications, and provides in-house field

  4. Slide 4: What is Natural Gas Compression?

    M a y 2 0 2 4 What is Natural Gas Compression? The extraction of natural gas from a well or pipeline, compressing it to a desired pressure and flow, and injecting it into a system. 4  Natural gas compressors are used in a number of applications for the production and transportation of oil and gas.

  5. Slide 5: Company Highlights

    M a y 2 0 2 4 Company Highlights 5  Unit Utilization: 62%  HP Utilization: 81% Fleet Highlights Revenue by Basin 74% <1% 3% Utica/Marcellus Shale 9% <1% 9%5% Eagle Ford Shale Permian Basin Antrim Shale Barnett Shale Anadarko BasinSan Juan Basin % of rental revenue in Q1 2024 Units Horsepower # % H

  6. Slide 6: Investment Highlights

    M a y 2 0 2 4 Investment Highlights 6 A Premier Compression Opportunity with Multiple, Compelling Growth Paths and Value Levers Attractive Industry Fundamentals  Oil production is stable and projected to continue to grow with significantly higher growth in the Permian Basin  A significant majority

  7. Slide 7: Attractive Industry Fundamentals

    M a y 2 0 2 4 Attractive Industry Fundamentals 7  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 from the Permian Basin  Artificial lift is essential for the vast majority

  8. Slide 8: Recurring Rental Business

    M a y 2 0 2 4 Recurring Rental Business 8  Initial terms for rental units range from 6-60 months  New large horsepower units are typically at the high end of the range  Most customers continue to rent past the initial term  Compression assets are “sticky”—once on a site, there are material switc

  9. Slide 9: Industry-Leading Technology

    M a y 2 0 2 4 Industry-Leading Technology 9  NGS compression assets are differentiated from competition through the use of proprietary System Management and Recovery Technology (“SMART”) – SMART software limits unplanned shutdowns and increases productivity by 5% to 8%  eComp works with existing e

  10. Slide 10: Proven Growth with Conservative Leverage

    M a y 2 0 2 4 Proven Growth with Conservative Leverage 10 2023 Adjusted EBITDA grew 56% with 2024 projected to grow another 34%-47%; ample headroom to finance both organic and inorganic growth

  11. Slide 11: Growth Opportunities and Value Levers

    M a y 2 0 2 4 Growth Opportunities and Value Levers 11 Fleet Optimization  Opportunity for targeted price increases due to inflation and high utilization  Optimize operations through increased use of data Asset Utilization  Increase utilization of the existing fleet  Improve the marketability of

  12. Slide 12: 2024 Guidance

    M a y 2 0 2 4 2024 Guidance 12 Adjusted EBITDA: New Unit Capital Expenditures: Maintenance Capital Expenditures: Low $61 million $40 million $8 million High $67 million $50 million $11 million Target Return on Invested Capital: At least 20%

  13. Slide 13: Investment Highlights Summary

    Attractive Industry Fundamentals Recurring Rental Business Industry-Leading Technology Proven Growth with Conservative Leverage Growth Opportunities and Value Levers Investment Highlights Summary M a y 2 0 2 413

  14. Slide 14: Thank You

    THANK YOU Investor Relations Contact: Anna Delgado 432-262-2753 ir@ngsgi.com Corporate Address 404 Veterans Airpark Lane, Suite 300 Midland, Texas 79705 I N V E S T O R P R E S E N T A T I O N | M A Y 2 0 2 4

  15. Slide 15: Appendix: Management Bios

    M a y 2 0 2 4 Appendix 15 Management bios Justin C. Jacobs Chief Executive Officer, Director  Joined NGS as CEO in February 2024, joined Board in April 2023, led Mill Road investment in June 2020  Mill Road Capital  LiveWire Capital (Turnaround Management and Principal Investing)  Blackstone’s P

  16. Slide 16: Appendix: Non-GAAP Financial Measure Bridges

    M a y 2 0 2 4 Appendix 16 Non-GAAP financial measure bridges Net Income to Adjusted EBITDA (in USD thousands) Q1 2023 Q1 2024 Net Income $ 370 $ 5,098 Interest Expense -- 2,935 Income Tax Expense 150 1,479 Depreciation & Amortization 6,165 7,087 Non-Cash Stock Compensation Expense 487 274 Severance

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