Company Overview - Natural Gas Services Group, Inc. (NGS) is a leading provider of natural gas compression equipment, technology, and services to the energy industry [6] - The company manufactures, fabricates, rents, sells, and maintains natural gas compressors for oil and natural gas production and plant facilities [6] - NGS is headquartered in Midland, Texas, with additional facilities in Tulsa, Oklahoma, and service locations in major oil and natural gas producing basins in the U.S. [6] Upcoming Events - NGS will participate in the NobleCon20 - Noble Capital Markets' Twentieth Annual Emerging Growth Equity Conference on December 3, 2024, at 10:00 a.m. ET [2] - Justin Jacobs, CEO of NGS, will present at the conference [2] - A high-definition video webcast of the presentation will be available on the company's website and other platforms the following day [3] Investor Relations - The company will be available for one-on-one investor meetings at the conference, and interested parties should contact their respective conference representative to schedule meetings [5] - For more information, investors can reach out to Anna Delgado in Investor Relations [12]

Core Insights - QIAGEN has launched two new tools aimed at enhancing microbial analysis capabilities for researchers, specifically targeting bacterial, fungal, and viral pathogens [1][4] - The new tools include a design tool for custom digital PCR (dPCR) assays and QIAseq xHXB panels, which allow for greater customization and flexibility in microbial detection [4][6] Product Offerings - The design tool for Custom dPCR Microbial Assays enables users to create specific primers and probes tailored to their microbial targets, enhancing the accuracy of detection [4][5] - QIAseq xHYB Custom Microbial Panels allow customers to design their own next-generation sequencing (NGS) panels, addressing limitations of existing vendor panels by providing broader genome coverage [6] Technological Advancements - The nanoplate dPCR technology is now applicable to a wider range of microbial targets, facilitating accurate measurement in low-biomass samples with high PCR inhibitor levels [3] - The design tool utilizes a sophisticated algorithm specifically developed for microbial applications, ensuring optimal sensitivity and specificity in assay design [5] Market Position and Expansion - QIAGEN continues to expand its portfolio of dPCR assays, having added over 100 new validated assays for various applications, including cancer research and infectious disease surveillance [7] - The customizable assays and panels are available on QIAGEN's GeneGlobe web portal, which integrates a comprehensive database of over 10,000 biological entities [8]

Financial Performance - Rental revenue for Q3 2024 was $37.4 million, a 35% increase compared to Q3 2023 and a 7% sequential increase[2]. - Net income for Q3 2024 was $5.0 million, or $0.40 per basic share, compared to $2.2 million, or $0.18 per basic share in Q3 2023[10]. - Adjusted EBITDA for Q3 2024 increased 53.7% to $18.2 million from $11.8 million in Q3 2023[11]. - Operating income for Q3 2024 was $9.5 million, compared to $4.9 million in Q3 2023[9]. - Total revenue for the three months ended September 30, 2024, was $40,686,000, a 29.6% increase from $31,369,000 in the same period of 2023[36]. - Net income for the three months ended September 30, 2024, was $5,014,000, up from $2,171,000 in the same period of 2023, marking a 130.5% increase[36]. - Earnings per share (EPS) for the three months ended September 30, 2024, was $0.40, compared to $0.18 for the same period in 2023, reflecting a 122.2% increase[36]. - Cash provided by operating activities for the nine months ended September 30, 2024, was $57,037,000, compared to $25,698,000 in the same period of 2023, indicating a 121.5% increase[38]. Capital Expenditures and Investments - Growth capital expenditures for FY 2024 are anticipated to be between $65 million and $75 million, updated from approximately $60 million to $80 million[5]. - The company experienced a net cash used in investing activities of $56,681,000 for the nine months ended September 30, 2024, compared to $128,710,000 in the same period of 2023[38]. Asset Management - Rented horsepower at the end of Q3 2024 was 475,534, a 19% increase over the prior year[2]. - Horsepower utilization was 82.0%, up 330 basis points from September 30, 2023[2]. - The company’s rental equipment net value increased to $407,761,000 as of September 30, 2024, from $373,649,000 on December 31, 2023[34]. - Total assets increased to $498,069,000 as of September 30, 2024, up from $478,729,000 on December 31, 2023[34]. Operating Costs and Expenses - The company reported a total operating costs and expenses of $31,229,000 for the three months ended September 30, 2024, which is a 17.5% increase from $26,465,000 in the same period of 2023[36]. - Interest expense for the three months ended September 30, 2024, was $3,045,000, compared to $1,600,000 in the same period of 2023, representing an increase of 90.6%[36]. - The company reported a depreciation and amortization expense of $22,878,000 for the nine months ended September 30, 2024, compared to $19,390,000 in the same period of 2023, reflecting an increase of 17.5%[38]. Future Outlook - The company expects FY 2024 Adjusted EBITDA to be in the range of $67 million to $69 million, up from the previous guidance of $64 million to $68 million[4]. - The company anticipates continued growth in EBITDA and capital expenditures, reflecting a positive outlook for the compression industry[29]. - The company maintains a target return on invested capital of at least 20%[6]. Operational Facilities - The company has a fabrication facility in Tulsa, Oklahoma, and service facilities in major oil and natural gas producing basins in the U.S.[27]. Conference Call - The conference call to discuss second-quarter financial results is scheduled for November 15, 2024[26].

Financial Data and Key Metrics Changes - The company reported a 35% year-over-year increase in rental revenue and a 7% sequential increase, driven by higher rented horsepower and selected rate increases [11] - Adjusted EBITDA for Q3 2024 was $18.2 million, a 54% increase compared to Q3 2023, and up approximately 11% from Q2 2024 [11][32] - Net income for the quarter was $5 million, or $0.40 per share [33] - Total revenue for the quarter increased sequentially by 5.7% to $40.7 million [32] - Adjusted gross margin percentage for rental revenue was 61.3%, compared to 59.3% in the previous quarter and 51.4% in Q3 2023 [11][32] Business Line Data and Key Metrics Changes - The company had approximately 476,000 horsepower rented by the end of Q3 2024, representing a 19% year-over-year increase [23] - Large horsepower units increased to approximately 333,000 horsepower, a 32% increase from Q3 2023, with 70% of rented horsepower now in large units [24][25] - Monthly rental revenue per average horsepower was $26.78 in Q3 2024, a 12% increase year-over-year [19] Market Data and Key Metrics Changes - WTI oil prices have remained in the high 60s to low 70s, supporting strong production and incremental compression needs [15] - The natural gas market is experiencing weak prices and muted activity, impacting demand for the small compression fleet [17] Company Strategy and Development Direction - The company is focusing on optimizing its fleet, improving asset utilization, driving new unit growth, particularly in large horsepower, and pursuing M&A opportunities [8][12] - Growth capital expenditures for 2024 are expected to be between $65 million and $75 million, reflecting investments in new large horsepower compression [41] - The company plans to increase its large horsepower rental fleet by nearly 100,000 horsepower over the next five quarters [24] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the margin-generating potential of rented compressor units and increased the 2024 adjusted EBITDA outlook to a range of $67 million to $69 million [12][38] - The company is mindful of costs and looking to improve efficiencies while reallocating cash flow to growth initiatives [39] - Management remains optimistic about the company's position in the large horsepower compression market and expects to capture an increasing share [44] Other Important Information - The company has made recent additions to its management team, including a new Chief Financial Officer and a Director with substantial experience in rental equipment [27][29] - Accounts receivable decreased significantly, indicating improved cash flow management [20][35] Q&A Session Summary Question: Thoughts on margin profile beyond 2024 - Management is pleased with the current margin levels and expects them to remain stable, with potential for modestly higher margins as higher horsepower units are introduced [48][50] Question: Utilization rates and large horsepower - High horsepower units are effectively 100% utilized, while the focus is on increasing utilization of smaller units [51][52] Question: Demand environment and CapEx decisions - The company is focusing on contracts for 2026 and is seeing strong demand for incremental compression [55][56] Question: Pricing environment - There is a positive upward bias on pricing, although the rate of increase has slowed compared to previous years [57] Question: Customer count decline - The slight decline in customer count is not a strategic decision and is not seen as a material issue [64] Question: CapEx dedicated to electric units - About 40% of the new horsepower will be electric motor driven [65] Question: Future leverage and cash flow - Management expects leverage to increase on an absolute basis but remains confident in the earnings power of the business [67][68] Question: Changes in customer behavior based on oil prices - Management indicated that changes in customer behavior could occur if WTI prices drop significantly [70] Question: Utilization of smaller horsepower units - The company is reviewing opportunities to reduce unutilized small and medium units, with some potentially being sold or scrapped [73][74] Question: CapEx deployment timing - There is typically a lag of about three quarters from initial capital expenditure to unit deployment [76]

Core Viewpoint - Natural Gas Services (NGS) reported strong quarterly earnings, significantly exceeding expectations, indicating robust performance in the natural gas compression equipment sector [1][2]. Financial Performance - NGS achieved earnings of $0.40 per share, surpassing the Zacks Consensus Estimate of $0.23 per share, and up from $0.18 per share a year ago, representing a 73.91% earnings surprise [1][2]. - The company reported revenues of $40.69 million for the quarter, exceeding the Zacks Consensus Estimate by 7.29%, and up from $31.37 million year-over-year [3]. Market Performance - NGS shares have increased approximately 49.9% since the beginning of the year, outperforming the S&P 500's gain of 25.5% [4]. - The stock currently holds a Zacks Rank 3 (Hold), indicating expected performance in line with the market in the near future [7]. Future Outlook - The current consensus EPS estimate for the upcoming quarter is $0.26 on revenues of $39.36 million, and for the current fiscal year, it is $1.23 on revenues of $152.68 million [8]. - The estimate revisions trend for NGS is mixed, which may change following the recent earnings report [7]. Industry Context - NGS operates within the Oil and Gas - Mechanical and Equipment industry, which is currently ranked in the bottom 33% of over 250 Zacks industries, suggesting potential challenges ahead [9].

Midland, Texas, Nov. 14, 2024 (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 September 30, 2024. The Company also updated its prior guidance for the full year, increasing its outlook for Adjusted EBITDA, along with providing a preliminary view of expected level of FY 2025 growth capital expenditures. ...

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 September 30, 2024 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 ...

Midland, Nov. 11, 2024 (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 its participation at an investor conference in November of 2024. Justin Jacobs, Chief Executive Officer of Natural Gas Services Group will present at the Sidoti Micro-Cap Virtual Investor Conference, scheduled on November 13-14, 2024. Mr. Jacobs will deliver his presentation ...

Midland, Nov. 07, 2024 (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, announced today that Ian Eckert will join the company’s executive leadership team as its new Chief Financial Officer no later than January 6, 2025. John Bittner, NGS’s current Interim CFO, will continue in that role until Mr. Eckert’s start date and then provide transition services thereafte ...

Midland, Texas, Nov. 04, 2024 (GLOBE NEWSWIRE) -- Natural Gas Services Group, Inc. (NYSE:NGS), a leading provider of natural gas compression equipment, technology and services to the energy industry, will host a conference call to review its third-quarter financial results on Friday, November 15, 2024 at 8:30 a.m. (EST), 7:30 a.m. (CST). The Company’s Q3 2024 financial and operating results for the nine months ended September 30, 2024 will be disseminated via press release and made available on the Company’ ...