Natural Gas Services Group, Inc. (NYSE:NGS) Q3 2021 Earnings Conference Call November 11, 2021 11:00 AM ET Company Participants Alicia Dada - Investor Relation Coordinator Steve Taylor - Chairman, President & Chief Executive Officer Conference Call Participants Rob Brown - Lake Street Capital Tate Sullivan - Maxim Group George Melas - MKH Management Operator Good morning ladies and gentlemen, and welcome to The Natural Gas Services Group Third Quarter 2021 Earnings Call. At this time, all participants are i ...

Revenue Performance - Total revenue increased by 2.0% to $17.7 million for the three months ended June 30, 2021, compared to $17.4 million for the same period in 2020, primarily driven by a 3.2% increase in rental revenue [80]. - Rental revenue reached $15.6 million for the three months ended June 30, 2021, up from $15.1 million in the same period of 2020, attributed to higher horsepower compression rentals [82]. - Sales revenue decreased by 21.7% to $1.6 million for the three months ended June 30, 2021, compared to $2.0 million for the same period in 2020, mainly due to lower compressor sales [84]. - Total revenue for the six months ended June 30, 2021, increased by 2.4% to $36.1 million compared to $35.3 million for the same period in 2020, primarily due to a 23.9% increase in sales revenue [91]. - Rental revenue for the six months ended June 30, 2021, decreased to $31.0 million from $31.2 million in the same period of 2020, impacted by well shut-ins and unit returns due to a drop in oil prices [92]. - Sales revenue increased to $4.3 million for the six months ended June 30, 2021, up from $3.5 million for the same period in 2020, primarily due to an increase in parts sales [94]. Cost and Expenses - Cost of rentals increased by 37.0% to $9.1 million during the three months ended June 30, 2021, compared to $6.6 million in the same period of 2020, driven by increased repair and maintenance work [85]. - Cost of rentals rose by 11.8% to $16.2 million during the six months ended June 30, 2021, compared to $14.5 million in the same period of 2020, driven by increased repair and maintenance work [95]. - Selling, general, and administrative expenses decreased by 2.1% to $2.6 million for the three months ended June 30, 2021, compared to $2.7 million in the same period of 2020 [87]. - Selling, general, and administrative expenses increased by 8.9% to $5.3 million for the six months ended June 30, 2021, influenced by an unrealized loss on deferred compensation [97]. - Adjusted EBITDA decreased by $2.4 million (17.7%) for the six months ended June 30, 2021, primarily due to a $1.7 million increase in rental costs and higher SG&A expenses [103]. - Cash flows from operating activities were $12.8 million for the six months ended June 30, 2021, down from $14.8 million for the same period in 2020, attributed to higher rental costs and SG&A expenses [106]. Assets and Investments - Current assets totaled $72.1 million as of June 30, 2021, compared to $72.7 million at December 31, 2020, with cash and cash equivalents decreasing to $26.2 million [104]. - The company invested $12.6 million in rental and property equipment during the six months ended June 30, 2021, including $12.0 million in new equipment for the rental fleet [105]. Fleet and Operations - As of June 30, 2021, the company had 1,245 natural gas compressors rented to 79 customers, with a total of 287,365 horsepower, compared to 1,273 compressors rented to 84 customers with 284,373 horsepower as of June 30, 2020 [69]. - The company's total unit horsepower remained flat at 446,803 horsepower as of June 30, 2021, compared to 446,805 horsepower as of June 30, 2020 [83]. - As of June 30, 2021, the company had 2,257 compressor packages in its fleet, a decrease from 2,335 units as of June 30, 2020, with total unit horsepower remaining relatively stable at 446,803 horsepower [93]. Financial Position and Strategy - The company recorded an income tax benefit of approximately $339,000 for the three months ended June 30, 2021, compared to an income tax expense of $(57,000) for the same period in 2020 [89]. - The company has a senior secured revolving credit agreement with an initial commitment of $20 million, with the potential to increase to $30 million based on collateral availability [108]. - For the remainder of 2021, the company plans to manage operating expenses and capital expenditures, ensuring that capital expenditures do not exceed internally generated cash flows [107].

Financial Data and Key Metrics Changes - Total revenue for Q2 2021 was $17.7 million, a 2% increase year-over-year but a 4% decrease sequentially [12][13][14] - Adjusted EBITDA for Q2 2021 was $4.5 million, down from $7.1 million year-over-year and $6.3 million sequentially [19][20] - Net loss after tax for Q2 2021 was $1.9 million, compared to a net income of $165,000 in Q2 2020 [18] - Operating loss for Q2 2021 was $2.3 million, compared to a loss of $148,000 in Q2 2020 [17] Business Line Data and Key Metrics Changes - Rental revenues increased by 2% sequentially and 3% year-over-year, reaching $15.6 million [12][25] - Service and maintenance revenues grew over 60% in Q2 2021 [12] - Sales revenue decreased by 22% year-over-year and 41% sequentially, primarily due to the absence of compressor sales [13][21] Market Data and Key Metrics Changes - Over 50 compressor packages were deployed in the Permian Basin, with a significant portion being high horsepower units [8][29] - The company noted a backlog of approximately $2 million, with about $1.5 million related to energy transition projects [24][58] Company Strategy and Development Direction - The company is focusing on evolving towards a higher horsepower fleet, which is expected to drive future revenue and profits [6][7] - Plans to increase rental rates in response to inflationary pressures and rising costs [10][45] - The company aims to maintain balance sheet strength and pursue long-term value creation opportunities [38][39] Management's Comments on Operating Environment and Future Outlook - Management expressed cautious optimism about the macro environment for the second half of the year, despite ongoing concerns about COVID-19 variants [8] - The company anticipates a busy Q4, although specific projections remain uncertain [48][49] - Management highlighted the importance of adapting to inflationary pressures and managing operational costs effectively [10][45] Other Important Information - The company has a cash balance of $26.2 million and no outstanding borrowings, providing ample liquidity [36][37] - The fleet size at the end of Q2 2021 totaled 2,257 compressors, with a significant portion classified as large horsepower [34][35] Q&A Session Summary Question: Pricing environment and cost increases - Management indicated plans for rental price increases due to rising costs, particularly in oil and parts [44][45] Question: Demand for new unit placements - Q3 is expected to see lower unit placements compared to Q2, allowing for better cost management [46][47] Question: Energy transition projects - Approximately three-quarters of the backlog is related to energy transition projects, indicating a shift in market focus [58] Question: Parts replacement work and margins - Parts replacement work has been deferred due to COVID-19, leading to increased costs in the current quarter [60][61] Question: Headcount and operational capacity - Overall headcount is above pre-COVID levels, with a shift towards more field employment [63]

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, 2021 ☐ 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) (State or other jurisdiction of inco ...

Natural Gas Services Group, Inc. (NYSE:NGS) Q1 2021 Earnings Conference Call May 13, 2021 11:00 AM ET Company Participants Alicia Dada - Investor Relations Stephen Taylor - Chairman, President and Chief Executive Officer Conference Call Participants Rob Brown - Lake Street Capital Tate Sullivan - Maxim Group Operator Good morning, ladies and gentlemen and welcome to the Natural Gas Services Group First Quarter 2021 Earnings Call. [Operator Instructions] Your call leaders for today???s call are Alicia Dada, ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-K ☒ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended December 31, 2020 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) Co ...

Natural Gas Services Group, Inc. (NYSE:NGS) Q4 2020 Earnings Conference Call March 30, 2021 11:00 AM ET Company Participants Alicia Dada - IR Coordinator Stephen Taylor - Chairman, President & CEO Conference Call Participants Rob Brown - Lake Street Capital Tate Sullivan - Maxim Group Seth Barkett - Individual Investor Greg Weaver - Invicta Capital Operator Good morning, ladies and gentlemen, and welcome to the Natural Gas Services Group Fourth Quarter 2020 Earnings Call. At this time, all participants are ...

Natural Gas Services Group, Inc. (NYSE:NGS) Q3 2020 Earnings Conference Call November 17, 2020 11:00 AM ET Company Participants Alicia Dada - IR Coordinator Stephen Taylor - Chairman, President & Chief Executive Officer Conference Call Participants Rob Brown - Lake Street Capital Tate Sullivan - Maxim Group Operator Good morning, ladies and gentlemen, and welcome to the Natural Gas Services Group's Third Quarter 2020 Earnings Call. At this time all participants are in listen-only mode. [Operator Instruction ...

☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended September 30, 2020 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 other jurisdiction of incorporation or organization) (I.R.S. Employer Identificat ...

Natural Gas Services Group, Inc. (NYSE:NGS) Q2 2020 Earnings Conference Call August 18, 2020 11:00 AM ET Company Participants Alicia Dada - IR Coordinator Stephen Taylor - Chairman, President and CEO Conference Call Participants Robert Brown - Lake Street Capital Operator Good morning, ladies and gentlemen, and welcome to the Natural Gas Services Group Second Quarter 2020 Earnings Call. At this time, all participants will be in a listen-only mode [Operator Instructions]. Your call leaders for today's call a ...