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Natural Gas Services (NGS) - 2024 Q3 - Quarterly Results
NGSNatural Gas Services (NGS)2024-11-15 19:44

Financial Performance - Rental revenue for Q3 2024 was 37.4million,a3537.4 million, a 35% increase compared to Q3 2023 and a 7% sequential increase[2]. - Net income for Q3 2024 was 5.0 million, or 0.40perbasicshare,comparedto0.40 per basic share, compared to 2.2 million, or 0.18perbasicshareinQ32023[10].−AdjustedEBITDAforQ32024increased53.70.18 per basic share in Q3 2023[10]. - Adjusted EBITDA for Q3 2024 increased 53.7% to 18.2 million from 11.8millioninQ32023[11].−OperatingincomeforQ32024was11.8 million in Q3 2023[11]. - Operating income for Q3 2024 was 9.5 million, compared to 4.9millioninQ32023[9].−TotalrevenueforthethreemonthsendedSeptember30,2024,was4.9 million in Q3 2023[9]. - Total revenue for the three months ended September 30, 2024, was 40,686,000, a 29.6% increase from 31,369,000inthesameperiodof2023[36].−NetincomeforthethreemonthsendedSeptember30,2024,was31,369,000 in the same period of 2023[36]. - Net income for the three months ended September 30, 2024, was 5,014,000, up from 2,171,000inthesameperiodof2023,markinga130.52,171,000 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 0.18forthesameperiodin2023,reflectinga122.20.18 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 25,698,000inthesameperiodof2023,indicatinga121.525,698,000 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 75million,updatedfromapproximately75 million, updated from approximately 60 million to 80million[5].−Thecompanyexperiencedanetcashusedininvestingactivitiesof80 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 128,710,000inthesameperiodof2023[38].AssetManagement−RentedhorsepowerattheendofQ32024was475,534,a19128,710,000 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 373,649,000onDecember31,2023[34].−Totalassetsincreasedto373,649,000 on December 31, 2023[34]. - Total assets increased to 498,069,000 as of September 30, 2024, up from 478,729,000onDecember31,2023[34].OperatingCostsandExpenses−Thecompanyreportedatotaloperatingcostsandexpensesof478,729,000 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 26,465,000inthesameperiodof2023[36].−InterestexpenseforthethreemonthsendedSeptember30,2024,was26,465,000 in the same period of 2023[36]. - Interest expense for the three months ended September 30, 2024, was 3,045,000, compared to 1,600,000inthesameperiodof2023,representinganincreaseof90.61,600,000 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 19,390,000inthesameperiodof2023,reflectinganincreaseof17.519,390,000 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 69million,upfromthepreviousguidanceof69 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].