Natural Gas Services Group, Inc. Reports First Quarter 2025 Financial and Operating Results, Increases 2025 Guidance

About this update from Natural Gas Services Group, Inc.

Midland, Texas - 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 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 Rental revenue of $38.9 million for the first quarter of 2025 representing a 15% year-over-year increase and a 2% sequential increase compared to the period ended December 31, 2024 . Net income of $4.9 million or $0.38 per diluted share for the first quarter of 2025 compared to net income of $5.1 million or $0.41 per diluted share for the comparable period; net income up $2.0 million sequentially. Leverage ratio at March 31, 2025 , was 2.18x. Adjusted EBITDA of $19.3 million for the first quarter of 2025, representing a 14% year-over-year increase; Adjusted EBITDA up 7% sequentially. See Non-GAAP Financial Measures - Adjusted EBITDA, below. Management Commentary and Outlook 'We are pleased to report another quarter of strong execution and continued momentum across our business,' said Justin Jacobs , Chief Executive Officer. 'We are taking market share, expanding our presence in key basins, and investing in our fleet, including the deployment of large-horsepower electric motor units. Our recent credit facility expansion, which also decreased our interest rate and provided more flexible covenants, further improves our ability to take advantage of organic and inorganic growth opportunities.' Jacobs continued, 'While broader market uncertainty increased in recent weeks-driven primarily by tariff concerns, commodity price volatility, and macroeconomic factors-we are not seeing any meaningful direct impact on our operations. We will continue to monitor indirect effects closely, but we remain confident in our ability to deliver results consistent with our guidance.' 'We increased our EBITDA outlook to reflect our first quarter outperformance relative to internal expectations and our confidence in the trajectory of the business. We remain excited about our prospects as we look to the remainder of 2025 and into 2026. Our team remains focused on disciplined capital allocation, operational excellence, and long-term value creation for our shareholders.' Corporate Guidance - 2025 Outlook The Company today provides updates to its previously announced guidance for the 2025 Fiscal Year. Based on a strong start to the year in the first quarter and its confidence for the remainder of the year, the Company today increased the high-end of its adjusted EBITDA guidance to $79 million . The Company now anticipates adjusted EBITDA for the 2025 Fiscal Year to be in the range of $74 - $79 million . The Company also reaffirms its outlook for 2025 growth capital expenditures of between $95 - $120 million , which are mostly comprised of new units (essentially all of which are under contract). Once all these units are deployed, which is expected by early 2026, the Company expects its rented horsepower fleet to increase by approximately 90,000 horsepower, representing an increase of approximately 18% compared to year-end 2024. Customer deployments remain on schedule and the timing of deployments as previously noted is heavily weighted to the second half of 2025 and early 2026. Additionally, the Company anticipates 2025 maintenance expenditures of $10 - $13 million , consistent with its prior guidance and its target return on invested capital of 20% remains unchanged. The Company also reiterates the statement from the 2024 year end release that once all the 2025 growth capital expenditures are spent and the units are deployed, its 'run rate' Adjusted EBITDA should increase at a rate (when compared to the fourth quarter of 2024) well in excess of (but less than double the rate of) the Company's anticipated horsepower growth of 18%. Forward-Looking Statements Certain statements herein (and oral statements made regarding the subjects of this release) constitute 'forward-looking statements' within the meaning of the federal securities laws. Words such as 'may,' 'might,' 'should,' 'believe,' 'expect,' 'anticipate,' 'estimate,' 'continue,' 'predict,' 'forecast,' 'project,' 'plan,' 'intend' or similar expressions, or statements regarding intent, belief, or current expectations, are forward-looking statements. These forward-looking statements are based upon current estimates and assumptions. These forward-looking statements rely on a number of assumptions concerning future events and are subject to a number of uncertainties and factors that could cause actual results to differ materially from such statements, many of which are outside the control of the Company. Forward-looking information includes, but is not limited to statements regarding: guidance or estimates related to EBITDA growth, projected capital expenditures; returns on invested capital, fundamentals of the compression industry and related oil and gas industry, valuations, compressor demand assumptions and overall industry outlook, and the ability of the Company to capitalize on any potential opportunities. In addition, these forward-looking statements are subject to other various risks and uncertainties, including without limitation those set forth in the Company's filings with the Securities and Exchange Commission , including the Company's Annual Report on Form 10-K for the year ended December 31, 2024 . Thus, actual results could be materially different. The Company expressly disclaims any obligation to update or alter statements whether as a result of new information, future events or otherwise, except as required by law. Company's Annual Report on Form 10-K for the year ended December 31, 2024 . Thus, actual results could be materially different. The Company expressly disclaims any obligation to update or alter statements whether as a result of new information, future events or otherwise, except as required by law. Contact: Anna Delgado Tel: (432) 262-2700 Email: [email protected] Web: www.ngsgi.com (C) 2025 Electronic News Publishing, source ENP Newswire

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