Natural Gas Services (NGS) - 2021 Q1 - Quarterly Report

PART I – FINANCIAL INFORMATION Item 1. Consolidated Financial Statements This section presents the unaudited condensed consolidated financial statements for Natural Gas Services Group, Inc. for the quarter ended March 31, 2021, including balance sheets, statements of operations, stockholders' equity, and cash flows, along with detailed notes explaining accounting policies, business operations, and specific financial line items Unaudited Condensed Consolidated Balance Sheets The balance sheet shows a slight increase in total assets and liabilities, with a minor decrease in total stockholders' equity from December 31, 2020, to March 31, 2021. Key changes include an increase in cash and cash equivalents and a decrease in accounts payable and deferred income | Metric | March 31, 2021 (in thousands) | December 31, 2020 (in thousands) | Change (in thousands) | % Change | | :-------------------------------- | :----------------------------- | :----------------------------- | :-------------------- | :------- | | Cash and cash equivalents | $30,683 | $28,925 | $1,758 | 6.08% | | Total current assets | $75,070 | $72,718 | $2,352 | 3.23% | | Total assets | $307,918 | $306,801 | $1,117 | 0.36% | | Accounts payable | $1,181 | $2,373 | $(1,192) | -50.23% | | Accrued liabilities | $10,483 | $6,770 | $3,713 | 54.84% | | Deferred income | $34 | $1,103 | $(1,069) | -96.92% | | Total current liabilities | $11,867 | $10,861 | $1,006 | 9.26% | | Total liabilities | $56,518 | $55,257 | $1,261 | 2.28% | | Total stockholders' equity | $251,400 | $251,544 | $(144) | -0.06% | Unaudited Condensed Consolidated Statements of Operations The company reported a net loss of $394 thousand for the three months ended March 31, 2021, a significant decline from a net income of $4.082 million in the prior-year period. Total revenue increased slightly, driven by higher sales, but was offset by increased operating costs and a shift from an income tax benefit to an expense | Metric (in thousands) | Three months ended March 31, 2021 | Three months ended March 31, 2020 | Change (in thousands) | % Change | | :-------------------- | :-------------------------------- | :-------------------------------- | :-------------------- | :------- | | Rental income | $15,341 | $16,100 | $(759) | -4.71% | | Sales | $2,711 | $1,450 | $1,261 | 86.97% | | Service and maintenance income | $345 | $340 | $5 | 1.47% | | Total revenue | $18,397 | $17,890 | $507 | 2.83% | | Total operating costs and expenses | $18,766 | $18,163 | $603 | 3.32% | | Operating loss | $(369) | $(273) | $(96) | 35.16% | | Income tax (expense) benefit | $(125) | $4,543 | $(4,668) | -102.75% | | Net (loss) income | $(394) | $4,082 | $(4,476) | -109.65% | | Basic EPS | $(0.03) | $0.31 | $(0.34) | -109.68% | | Diluted EPS | $(0.03) | $0.30 | $(0.33) | -110.00% | Unaudited Condensed Consolidated Statements of Stockholders' Equity Stockholders' equity saw a minor decrease from $251.544 million at January 1, 2021, to $251.400 million at March 31, 2021, primarily due to the net loss incurred during the quarter, partially offset by compensation expenses related to restricted common stock | Metric (in thousands) | January 1, 2021 | March 31, 2021 | Change (in thousands) | | :-------------------- | :-------------- | :------------- | :-------------------- | | Common Stock Amount | $133 | $134 | $1 | | Additional Paid-In Capital | $112,615 | $112,864 | $249 | | Retained Earnings | $139,286 | $138,892 | $(394) | | Total Stockholders' Equity | $251,544 | $251,400 | $(144) | - Net loss of $394 thousand for the quarter contributed to the decrease in retained earnings and total stockholders' equity[12] Unaudited Condensed Consolidated Statements of Cash Flows Net cash provided by operating activities decreased to $7.381 million for the three months ended March 31, 2021, from $8.275 million in the prior-year period. This decline was primarily due to lower net income and changes in operating assets and liabilities, partially offset by reduced cash used in investing activities | Metric (in thousands) | Three months ended March 31, 2021 | Three months ended March 31, 2020 | Change (in thousands) | % Change | | :-------------------- | :-------------------------------- | :-------------------------------- | :-------------------- | :------- | | Net (loss) income | $(394) | $4,082 | $(4,476) | -109.65% | | NET CASH PROVIDED BY OPERATING ACTIVITIES | $7,381 | $8,275 | $(894) | -10.80% | | NET CASH USED IN INVESTING ACTIVITIES | $(4,982) | $(6,665) | $1,683 | -25.25% | | NET CASH USED IN FINANCING ACTIVITIES | $(641) | $(151) | $(490) | 324.50% | | NET CHANGE IN CASH AND CASH EQUIVALENTS | $1,758 | $1,459 | $299 | 20.50% | | CASH AND CASH EQUIVALENTS AT END OF PERIOD | $30,683 | $13,051 | $17,632 | 135.09% | - The decrease in operating cash flow was primarily driven by lower cash receipts on accounts receivable and higher SG&A expenses, partially offset by slightly higher rental and sales margins[93] Notes to Unaudited Condensed Consolidated Financial Statements These notes provide essential details on the company's business, significant accounting policies, and specific financial statement line items, including revenue recognition, inventory, federal income tax receivable, rental equipment, credit facilities, and stock-based compensation. They also cover recent accounting pronouncements and subsequent events - Revenue is recognized in accordance with ASC 606, based on the transfer of control of goods or services to customers[22] - Rental revenue is recognized over time, with equal monthly payments, and contracts typically range from six to 24 months, or up to 60 months for larger horsepower compressors[23] - The CARES Act allowed NOLs from 2018-2020 to be carried back five years, resulting in a $15.0 million federal income tax receivable and a $10.1 million increase in deferred income tax liability in 2020[39][44] 1. Description of Business Natural Gas Services Group, Inc. (NGS) is a leading provider of natural gas compression equipment and services to the energy industry, manufacturing, fabricating, renting, selling, and maintaining natural gas compressors and flare systems for oil and natural gas production and plant facilities - NGS manufactures, fabricates, rents, sells, and maintains natural gas compressors and flare systems for the energy industry[18] 2. Summary of Significant Accounting Policies This section outlines the company's accounting principles, including consolidation, revenue recognition under ASC 606, and policies for income taxes. It details how revenue is generated from rentals, sales, and service, and discusses the impact of the CARES Act on federal income tax receivables Revenue Recognition Policy The company recognizes revenue under ASC 606, measuring it based on the consideration specified in customer contracts and recognizing it when control of promised goods or services is transferred to the customer - Revenue is recognized when a customer obtains control of promised goods or services, reflecting the consideration expected to be received[22] Nature of Goods and Services NGS generates revenue from renting compressors and flare systems (operating leases), selling custom-fabricated compressors, flare systems, parts, and used rental equipment, and providing routine or call-out service and maintenance on customer-owned equipment - Rental revenue from compressors and flare systems is recognized over time with equal monthly payments[23] - Sales revenue includes custom/fabricated compressors, flare systems, parts, and used rental equipment, with control transferring upon shipment or customer acceptance[24][25][27][29] - Service and maintenance revenue is recognized after services are rendered[30] Disaggregation of Revenue Total revenue increased by 2.8% year-over-year, primarily driven by an 87% increase in sales revenue, which offset a 4.7% decrease in rental income for the three months ended March 31, 2021 | Revenue Type (in thousands) | Q1 2021 | Q1 2020 | Change (in thousands) | % Change | | :-------------------------- | :------ | :------ | :-------------------- | :------- | | Compressors - sales | $1,891 | $852 | $1,039 | 121.95% | | Flares - sales | $46 | $80 | $(34) | -42.50% | | Other (parts/rebuilds) - sales | $774 | $518 | $256 | 49.42% | | Service and maintenance | $345 | $340 | $5 | 1.47% | | Total revenue from contracts with customers | $3,056 | $1,790 | $1,266 | 70.73% | | ASC 842 rental revenue | $15,341 | $16,100 | $(759) | -4.71% | | Total revenue | $18,397 | $17,890 | $507 | 2.83% | Income Taxes The company recognizes deferred tax assets and liabilities for temporary differences and accounts for uncertain tax positions. The CARES Act significantly impacted the company's tax position in 2020, allowing NOL carrybacks and resulting in a federal income tax receivable - Deferred tax assets and liabilities are recognized for future tax consequences of temporary differences[36] - The CARES Act enabled the company to carry back 2018 and 2019 NOLs, leading to a $15.0 million federal income tax receivable and a $10.1 million increase in deferred income tax liability in 2020[39][44] - As of March 31, 2021, the federal income tax receivable was $11.5 million after receiving $3.9 million in refunds related to 2018 NOLs[44] Recently Issued Accounting Pronouncements The company is currently evaluating the impact of ASU 2016-13, 'Financial Instruments-Credit Losses (ASC Topic 326)', which requires immediate recognition of estimated credit losses and is effective for smaller reporting companies after January 1, 2023 - ASU 2016-13, effective for smaller reporting companies after January 1, 2023, requires immediate recognition of estimated credit losses on financial assets[40] - The company is currently evaluating the impact of ASU 2016-13 on its consolidated financial statements and note disclosures[40] 3. Inventory Total inventory increased slightly to $21.087 million at March 31, 2021, from $20.991 million at December 31, 2020. The allowance for obsolescence significantly decreased due to write-offs | Inventory Type (in thousands) | March 31, 2021 | December 31, 2020 | Change (in thousands) | | :---------------------------- | :------------- | :---------------- | :-------------------- | | Raw materials - current | $18,619 | $18,026 | $593 | | Work-in-process | $1,363 | $1,900 | $(537) | | Inventory - current | $19,982 | $19,926 | $56 | | Raw materials - long term (net) | $1,105 | $1,065 | $40 | | Inventory - total | $21,087 | $20,991 | $96 | | Inventory Allowance (in thousands) | March 31, 2021 | December 31, 2020 | Change (in thousands) | | :--------------------------------- | :------------- | :---------------- | :-------------------- | | Beginning balance | $(221) | $(24) | $(197) | | Accruals | — | $(251) | $251 | | Write-offs | $184 | $54 | $130 | | Ending balance | $(37) | $(221) | $184 | 4. Federal Income Tax Receivable The company's federal income tax receivable remained at $11.5 million as of March 31, 2021, following the carryback of NOLs from 2018 and 2019 under the CARES Act and receipt of $3.9 million in refunds during 2020 - Federal income tax receivable was $11.5 million as of March 31, 2021, after receiving $3.9 million in refunds in 2020 related to 2018 NOLs carried back under the CARES Act[44] 5. Rental Equipment Net rental equipment decreased slightly to $206.436 million at March 31, 2021, from $207.585 million at December 31, 2020, primarily due to accumulated depreciation exceeding new additions. No impairment was identified | Metric (in thousands) | March 31, 2021 | December 31, 2020 | Change (in thousands) | | :-------------------- | :------------- | :---------------- | :-------------------- | | Compressor units | $385,067 | $379,623 | $5,444 | | Work-in-process | $2,754 | $3,764 | $(1,010) | | Rental equipment | $387,821 | $383,387 | $4,434 | | Accumulated depreciation | $(181,385) | $(175,802) | $(5,583) | | Rental equipment, net | $206,436 | $207,585 | $(1,149) | - No impairment existed for rental equipment as of March 31, 2021[45] 6. Credit Facility The company's previous senior secured revolving credit agreement with JP Morgan Chase Bank, N.A. matured on March 31, 2021. A new credit facility was entered into subsequent to this date - The previous $30 million senior secured revolving credit agreement matured on March 31, 2021[46] - A new credit facility was established subsequent to March 31, 2021[46] 7. Stock-Based and Other Long-Term Incentive Compensation This section details the company's stock option and restricted stock/unit activity, as well as other long-term incentive awards. Stock options outstanding decreased due to expirations, while restricted shares/units increased due to new grants to executives and board members, leading to unrecognized compensation expense | Stock Options (shares) | December 31, 2020 | March 31, 2021 | Change | | :--------------------- | :---------------- | :------------- | :----- | | Outstanding | 161,334 | 145,334 | -16,000 | | Expired | — | (16,000) | -16,000 | | Exercisable | 161,334 | 145,334 | -16,000 | | Weighted Average Exercise Price | $24.48 | $25.21 | $0.73 | | Restricted Stock/Units (shares) | December 31, 2020 | March 31, 2021 | Change | | :------------------------------ | :---------------- | :------------- | :----- | | Outstanding | 258,101 | 315,359 | 57,258 | | Granted | — | 146,048 | 146,048 | | Vested | — | (85,457) | -85,457 | | Canceled/Forfeited | — | (3,333) | -3,333 | | Weighted Average Grant Date Fair Value | $12.87 | $9.04 | $(3.83) | - Total compensation expense for restricted stock awards was $474 thousand for Q1 2021, with $2.6 million of unrecognized expense remaining over 2.0 years[52] - Other long-term incentive awards to the CEO and independent Board members resulted in $166 thousand compensation expense for Q1 2021, with $1.8 million unrecognized expense over 2.4 years[54] 8. (Loss) Earnings per Share The company reported a basic and diluted loss per share of $0.03 for the three months ended March 31, 2021, a significant decrease from earnings per share of $0.31 (basic) and $0.30 (diluted) in the prior-year period. Restricted stock and stock options were antidilutive and excluded from diluted EPS calculation for Q1 2021 | Metric (in thousands, except per share data) | Q1 2021 | Q1 2020 | | :------------------------------------------- | :------ | :------ | | Net (loss) income | $(394) | $4,082 | | Weighted average common shares outstanding (Basic) | 13,263 | 13,157 | | Diluted weighted average shares | 13,263 | 13,416 | | Basic (Loss) earnings per common share | $(0.03) | $0.31 | | Diluted (Loss) earnings per common share | $(0.03) | $0.30 | - 315,359 restricted stock/units and 145,334 stock options were excluded from diluted loss per share computation for Q1 2021 due to their antidilutive effect[55] 9. Commitments and Contingencies The company is occasionally involved in legal proceedings in the ordinary course of business but does not anticipate any material adverse effects on its financial position, results of operations, or cash flow from these actions - Management believes any ultimate liability from legal proceedings will not have a material adverse effect on financial position, results of operations, or cash flow[57] - The company is not currently a party to any material legal proceedings and is unaware of any threatened material litigation[57] 10. Subsequent Events Subsequent to the quarter end, on May 11, 2021, the company entered into a new five-year senior secured revolving credit agreement with Texas Capital Bank, National Association, providing an initial commitment of $20 million, with an accordion feature up to $30 million and a right to request an increase up to $50 million - On May 11, 2021, NGS entered a new five-year senior secured revolving credit agreement with Texas Capital Bank[58] - The new credit agreement has an initial commitment of $20 million, an accordion feature to increase to $30 million, and a right to request an increase up to $50 million[58] - The obligations are secured by a first priority lien on all company assets, including inventory, accounts receivable, and a variable number of leased compressor equipment[58] Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations This section provides management's perspective on the company's financial condition and operational results for the three months ended March 31, 2021, compared to the prior year. It covers business overview, the impact of recent events like COVID-19, detailed revenue and expense analysis, liquidity, capital resources, and future strategy Overview Natural Gas Services Group (NGS) primarily focuses on renting natural gas compressors, with contracts typically ranging from six to 60 months. The company also fabricates and sells custom compressors, flare systems, parts, and provides service and maintenance. The industry is cyclical, heavily influenced by oil and natural gas prices, with a recent shift towards larger horsepower units for artificial lift applications in unconventional oil shale plays - NGS's primary focus is on renting natural gas compressors, with contracts from six to 60 months[68] - As of March 31, 2021, NGS had 1,265 natural gas compressors (287,914 horsepower) rented to 80 customers, down from 1,383 compressors (298,143 horsepower) rented to 92 customers at March 31, 2020[68] - The company has been shifting resources towards designing, fabricating, and renting larger horsepower compressor packages (400-1,380 HP) to meet market demand in centralized drilling and production facilities[73] Recent Events The COVID-19 pandemic led to a significant decline in crude oil demand and prices, impacting the oil and natural gas industry. In response, NGS implemented cost-cutting measures, including headcount reductions, wage freezes, and reduced capital expenditures, which are expected to continue benefiting financial performance through 2021. Field operations have remained largely uninterrupted due to the industry's critical infrastructure designation - The COVID-19 pandemic caused a significant decline in global crude oil demand and prices[75] - NGS implemented cost-cutting measures in Q2 2020, including headcount reductions, wage freezes, and reduced capital expenditures, which are expected to benefit financial performance through 2021[77] - Field operations have continued largely uninterrupted as the industry is designated critical infrastructure, with no significant impact on service operations or supply chain issues due to COVID-19[78] Results of Operations For the three months ended March 31, 2021, total revenue increased by 2.8% year-over-year, primarily driven by an 87% increase in sales revenue, which offset a 4.7% decrease in rental income. Operating loss widened due to increased operating costs, and the company shifted from an income tax benefit to an expense, resulting in a net loss | Metric (in thousands) | Q1 2021 | Q1 2020 | Change (in thousands) | % Change | | :-------------------- | :------ | :------ | :-------------------- | :------- | | Total revenue | $18,397 | $17,890 | $507 | 2.8% | | Rental revenue | $15,341 | $16,100 | $(759) | -4.7% | | Sales revenue | $2,711 | $1,450 | $1,261 | 87.0% | | Cost of rentals | $7,156 | $7,897 | $(741) | -9.4% | | Cost of sales | $2,616 | $1,739 | $877 | 50.4% | | SG&A expenses | $2,649 | $2,162 | $487 | 22.5% | | Depreciation and amortization | $6,297 | $6,240 | $57 | 0.9% | | Income tax (expense) benefit | $(125) | $4,543 | $(4,668) | -102.75% | | Net (loss) income | $(394) | $4,082 | $(4,476) | -109.65% | - Rental revenue decreased due to a decline in rented units caused by lower oil prices and reduced crude oil demand[81] - Sales revenue increased significantly due to higher compressor and parts sales, reflecting marginally improving industry activity and stabilized commodity prices[83] Non-GAAP Financial Measures (Adjusted EBITDA) Adjusted EBITDA, a non-GAAP measure, increased by $219 thousand to $6.503 million for the three months ended March 31, 2021, primarily due to increased sales margins. Management uses Adjusted EBITDA to evaluate operating performance, compare results, and for strategic planning, acknowledging its limitations as an analytical tool | Metric (in thousands) | Q1 2021 | Q1 2020 | Change (in thousands) | | :-------------------- | :------ | :------ | :-------------------- | | Net income (loss) | $(394) | $4,082 | $(4,476) | | Interest expense | $1 | $3 | $(2) | | Income tax expense (benefit) | $125 | $(4,543) | $4,668 | | Depreciation and amortization | $6,297 | $6,240 | $57 | | Non-cash stock compensation expense | $474 | $502 | $(28) | | Adjusted EBITDA | $6,503 | $6,284 | $219 | - Adjusted EBITDA increased primarily due to increased sales margins compared to the prior-year period[91] - Adjusted EBITDA is used by management and investors to measure operating performance, evaluate and compare results, and for strategic planning, despite its limitations[89][90] Liquidity and Capital Resources The company's working capital increased to $63.2 million at March 31, 2021, from $61.9 million at December 31, 2020. Cash and cash equivalents also increased, supported by operating cash flows. Investments in rental and other equipment totaled $5.0 million, financed by operating cash flow and cash on hand | Metric (in thousands) | March 31, 2021 | December 31, 2020 | Change (in thousands) | | :-------------------- | :------------- | :---------------- | :-------------------- | | Total current assets | $75,070 | $72,718 | $2,352 | | Total current liabilities | $11,867 | $10,861 | $1,006 | | Total working capital | $63,203 | $61,857 | $1,346 | | Cash and cash equivalents | $30,683 | $28,925 | $1,758 | - Net cash provided by operating activities was $7.4 million for Q1 2021, partially offset by $5.0 million in capital expenditures for rental and other equipment[93] - The decline in operating cash flows was primarily due to lower cash receipts on accounts receivable and higher SG&A expenses, partially offset by slightly higher rental and sales margins[93] Strategy For the remainder of 2021, the company plans to continue cost-cutting measures implemented in 2020. Forecasted capital expenditures will not exceed internally generated cash flows and cash on hand, focusing on contracted, premium-priced additions to the compressor rental fleet and required service vehicles. Management believes current liquidity will be sufficient for the foreseeable future - The company plans to continue cost-cutting measures throughout 2021[94] - Forecasted capital expenditures for 2021 will not exceed internally generated cash flows and cash on hand, focusing on premium-priced rental fleet additions and service vehicles[94] - Management believes cash flows from operations and current cash position will be sufficient to satisfy capital and liquidity requirements for the foreseeable future[94] Bank Borrowings The company entered into a new senior secured revolving credit agreement with Texas Capital Bank, National Association, with an initial commitment of $20 million, expandable up to $50 million, maturing on May 11, 2026. As of May 11, 2021, there were no outstanding amounts under this new agreement - A new senior secured revolving credit agreement with Texas Capital Bank has an initial commitment of $20 million, with an accordion feature up to $30 million and a right to request an increase up to $50 million[95] - The maturity date of the Credit Agreement is May 11, 2026[95] - As of May 11, 2021, no amounts were outstanding under the new Credit Agreement[63] Critical Accounting Policies and Practices There have been no changes in the critical accounting policies disclosed in the company's Form 10-K for the year ended December 31, 2020 - No changes in critical accounting policies from the December 31, 2020 Form 10-K[96] Off-Balance Sheet Arrangements The company engages in off-balance sheet arrangements, primarily operating lease agreements and purchase agreements, but does not believe these will materially affect its liquidity or capital resources - Off-balance sheet arrangements include operating lease agreements and purchase agreements[98] - These arrangements are not expected to materially affect liquidity or availability of capital resources[98] Special Note Regarding Forward-Looking Statements This section highlights that the report contains forward-looking statements subject to known and unknown risks and uncertainties, which could cause actual results to differ materially from forecasts. The company does not undertake to publicly update these statements - The report contains forward-looking statements subject to known and unknown risks and uncertainties[99] - Risks include loss of market share, competing technologies, prolonged reduction in oil and natural gas prices, and new governmental regulations[99] - The company does not undertake any obligation to publicly update or revise forward-looking statements[66][99] Item 3. Quantitative and Qualitative Disclosures about Market Risk There have been no changes in the market risks disclosed in the company's Form 10-K for the year ended December 31, 2020 - No changes in market risks from the December 31, 2020 Form 10-K[101] Item 4. Controls and Procedures Management, including the CEO and CFO, evaluated the effectiveness of the company's disclosure controls and procedures as of December 31, 2020, and concluded they were effective in providing reasonable assurance of achieving control objectives - Disclosure controls and procedures were evaluated as effective as of December 31, 2020[102] - Management applies judgment in evaluating and implementing controls, recognizing that they provide only reasonable assurance[102] PART II – OTHER INFORMATION Item 1. Legal Proceedings The company is involved in various legal proceedings in the ordinary course of business but does not anticipate any material adverse effects on its financial position, results of operations, or cash flows. There are no current material legal proceedings or threatened litigation - Management believes any ultimate liability from legal proceedings will not have a material adverse effect on financial position, results of operations, or cash flows[103] - The company is not currently a party to any material legal proceedings and is unaware of any threatened litigation[103] Item 1A. Risk Factors For a comprehensive discussion of risks associated with the company and the industry, readers are directed to Item 1A, Risk Factors, in the Annual Report on Form 10-K for the fiscal year ended December 31, 2020 - Refer to Item 1A, Risk Factors, in the Annual Report on Form 10-K for the fiscal year ended December 31, 2020, for a discussion of company and industry risks[104] Item 5. Other Information This section provides detailed information about the new senior secured revolving credit agreement entered into on May 11, 2021, with Texas Capital Bank. It outlines the initial commitment, accordion features, borrowing base calculation, interest and fees, maturity date, security, and financial covenants - On May 11, 2021, NGS entered a new senior secured revolving credit agreement with Texas Capital Bank, National Association[105] - The agreement has an initial commitment of $20 million, an accordion feature up to $30 million, and a right to request an increase up to $50 million[105] - The borrowing base is calculated based on eligible accounts receivable, inventory, and eligible compressor units, with specific percentages and caps[106] - The maturity date of the Credit Agreement is May 11, 2026, and it is secured by a first priority lien on all company assets[108][109] - Financial covenants require maintaining a leverage ratio less than or equal to 3.00 to 1.00 and a fixed charge coverage ratio greater than or equal to 1.00 to 1.00 during specified trigger periods[110] Item 6. Exhibits This section lists all exhibits filed with or incorporated by reference into the Form 10-Q, including organizational documents, equity incentive plans, employment agreements, and the new Credit Agreement and related security documents - Exhibits include Articles of Incorporation, Bylaws, Equity Incentive Plans, Employment Agreement with Stephen C. Taylor, and the new Credit Agreement dated May 11, 2021, with Texas Capital Bank[114] Signatures The report is duly signed on behalf of Natural Gas Services Group, Inc. by Stephen C. Taylor, President and Chief Executive Officer, and Micah C. Foster, Vice President and Chief Financial Officer, as of May 14, 2021 - The report was signed by Stephen C. Taylor (President and CEO) and Micah C. Foster (VP and CFO) on May 14, 2021[118]