Midland, Texas, Jan. 27, 2026 (GLOBE NEWSWIRE) -- Natural Gas Services Group, Inc. (“NGS” or the “Company”), a leading provider of natural gas compression equipment, technology, and services to the energy industry, today announced that Stephen Taylor, Chairman Emeritus and member of the Board of Directors, has informed the Company that he will retire as a Director at the 2026 Annual Meeting of Shareholders and not stand for re-election to the Board. His retirement will conclude over two decades of extraordi ...

Key Takeaways USAC acquired J-W Power for about $860M, expanding its fleet and footprint in major U.S. natural gas regions.USA Compression funded the deal with $430M cash from its revolver and issued about 18.2M common units.USAC acquired J-W Power for about $860M, expanding its fleet and footprint in major U.S. natural gas regions.USA Compression Partners (USAC) , a Dallas, TX-based oil and gas equipment and services company, has completed the acquisition of J-W Power Company for approximately $860 million ...

Core Insights - Investors are gravitating towards safer, low-beta stocks due to anticipated market uncertainty [1] - Companies are increasingly utilizing complex borrowing methods for funding data center projects, contributing to market nervousness [1] Stock Recommendations - Suggested low-beta stocks include J & J Snack Foods Corp. (JJSF), USA Compression Partners, LP (USAC), Natural Gas Services Group, Inc. (NGS), and The Vita Coco Company, Inc. (COCO) [2] Stock Characteristics - Beta measures the volatility of a stock relative to the market, with a beta of less than 1 indicating lower volatility [3][4] - A beta range of 0 to 0.6 is used as a screening criterion for less volatile stocks [5] Screening Criteria - Stocks must have a positive price change over the last four weeks [5] - Average 20-day trading volume should exceed 50,000 [6] - Stock price must be at least $5 [6] - Zacks Rank of 1 indicates strong buy potential [6] Company Profiles - **J & J Snack Foods**: Strong balance sheet, negligible debt, focused on capital return to shareholders, and plans to accelerate stock repurchases [7] - **USA Compression Partners**: Positioned to benefit from rising demand for cleaner fuels and LNG exports, with plans to add new equipment by year-end [8][9] - **Natural Gas Services**: Benefits from increased LNG exports, leading to higher demand for compression equipment [10] - **The Vita Coco Company**: Leading producer of coconut water, experiencing strong demand growth across regions [11]

Core Insights - Pembina Pipeline Corporation has outlined a growth strategy for 2026, focusing on increasing fee-based adjusted EBITDA and expanding its pipeline systems to capitalize on market conditions and customer demand [2][3][18] Financial Performance - Pembina projects an adjusted EBITDA of C$4.1 billion to C$4.4 billion for 2026, representing an approximate 4% increase compared to 2025, driven by increased volumes across its diversified energy assets [3][9] - The company anticipates a compound annual growth rate of about 5% in fee-based adjusted EBITDA per share from 2023 to 2026 [4] Capital Investments and Expansions - Pembina's capital investment program for 2026 is set at C$1.6 billion, with C$640 million allocated to pipeline expansions and C$255 million for facilities projects [5][6] - The expansion of the Peace Pipeline System includes a C$200 million investment to increase propane-plus market delivery capacity by 70,000 barrels per day [10][11] Strategic Agreements - Pembina has secured a 12-year agreement with Ovintiv Inc. for 0.5 million tons per annum of liquefaction capacity at the Cedar LNG facility, expected to contribute C$220 million to C$280 million annually in adjusted EBITDA [7][8] Innovation and Sustainability - The Greenlight Electricity Center project aims to provide up to 1,800 MW of electricity to Alberta's power grid, with significant progress made in 2025 [12][13] - Pembina's focus on safe, reliable, and cost-effective energy infrastructure solutions is central to its long-term sustainability and growth strategy [19][20] Leadership Transition - Pembina is undergoing a leadership transition with key executives retiring by the end of 2025, aiming to strengthen organizational capabilities [14][15] Marketing Outlook - The marketing segment is expected to have a more moderate contribution in 2026 due to lower frac spreads and changing natural gas prices, but Pembina continues to navigate these dynamics through hedging strategies [16][17]

Core Insights - USA Compression Partners, LP (USAC) is a significant entity in the natural gas compression sector, headquartered in Dallas, Texas, focusing on essential compression services for natural gas transportation and storage [1] Group 1: Stock Performance and Market Position - Citigroup has adjusted USAC's stock grade to Neutral, maintaining a hold action, with the current stock price at $24.58 [1][5] - USAC's stock price has decreased by 2.73%, or $0.69, trading at $24.58 despite recent positive developments [3][5] - The stock has fluctuated between $24.53 and $25.34 today, with a yearly high of $30.10 and a low of $21.53, indicating a dynamic market environment [4] Group 2: Strategic Developments - Citigroup raised USAC's price target from $25 to $26, coinciding with USAC's strategic acquisition of J-W Power Company for approximately $860 million [2][5] - The acquisition is expected to significantly enhance USAC's operational capabilities by adding over 800,000 horsepower, expanding its fleet to roughly 4.4 million active horsepower [2] - This acquisition broadens USAC's geographic reach and introduces new service lines, such as aftermarket support and specialized manufacturing, likely solidifying its market presence [3]

Core Insights - Expectations for interest rate cuts are changing rapidly, leading to anticipated volatility in the U.S. stock market, particularly with uncertainty surrounding the leadership of the Federal Reserve [1] Group 1: Stock Recommendations - Low-beta stocks are recommended to navigate market volatility, including USA Compression Partners, LP (USAC), The Vita Coco Company, Inc. (COCO), Natural Gas Services Group, Inc. (NGS), and Agnico Eagle Mines Limited (AEM) [1] - USA Compression Partners is positioned to benefit from rising demand for cleaner fuels and higher LNG export volumes, with plans to add new equipment by year-end [6][7] - The Vita Coco Company is experiencing strong demand for its leading coconut water brand, indicating a positive business outlook [7][8] - Natural Gas Services is set to benefit from increased LNG exports and the construction of more pipelines, leading to higher demand for its compression equipment [9] - Agnico Eagle Mines, as the second-largest gold producer globally, has a strong financial position and a positive long-term outlook for the gold market [10] Group 2: Screening Criteria - Stocks with a beta between 0 and 0.6 are targeted for being less volatile than the market, alongside other criteria such as positive price movement over the last month, average trading volume greater than 50,000, and a minimum price of $5 [4][5] - Zacks Rank 1 stocks are expected to significantly outperform the broader U.S. equity market over the next one to three months [5]

Market Overview - The U.S. stock market is expected to remain volatile due to inflation concerns and policy uncertainty, impacting market sentiment [1] - It is advisable to invest in low-beta stocks to safeguard portfolios during this volatility [1] Beta Measurement - Beta measures the volatility of a stock relative to the market, with a beta of 1 indicating movement in line with the market [2][3] - Stocks with a beta greater than 1 are more volatile, while those with a beta less than 1 are less volatile [3] Stock Screening Criteria - Stocks with a beta between 0 and 0.6 are screened for lower volatility [4] - Additional criteria include positive price movement over the last month, average trading volume greater than 50,000, a minimum price of $5, and a Zacks Rank of 1 (Strong Buy) [5] Featured Low-Beta Stocks - **USA Compression Partners (USAC)**: Positioned to benefit from rising demand for cleaner fuels and plans to add new equipment by year-end, indicating growth potential [6][9] - **Futu Holdings (FUTU)**: A digital financial services provider experiencing rapid growth and increased client trust, expanding its global presence [7][9] - **Garrett Motion (GTX)**: A leading manufacturer of turbochargers focused on efficiency and emissions reduction, also exploring opportunities in advanced cooling technology for data centers [10][9]

Financial Data and Key Metrics Changes - The company reported record results in Q3, with adjusted EBITDA of $20.8 million, up approximately 15% year-over-year and 6% sequentially [6][14] - Total rental revenue grew 11.1% year-over-year and 4.9% sequentially to $41.5 million, reflecting a 27,000 horsepower increase during the quarter [14] - Net income was $5.8 million or $0.46 per diluted share, an increase of $800,000 year-over-year and $600,000 sequentially [15] Business Line Data and Key Metrics Changes - Rented horsepower ended the quarter at approximately 526,000, an 11% increase year-over-year and 5% sequentially [15] - Fleet utilization reached a record 84.1%, up 204 basis points year-over-year and 45 basis points sequentially [15] - The company added a significant number of large horsepower units under long-term contracts, with roughly half being electric units [5][8] Market Data and Key Metrics Changes - The company is seeing strong demand in oil production, particularly in production efficiency, reliability, and emissions performance [9] - Rising electricity demand and LNG infrastructure buildout are creating durable growth opportunities for compression services [9] - The company is optimistic about continued demand for compression, driven by AI and data center expansion [9] Company Strategy and Development Direction - The company plans to add approximately 90,000 horsepower over 2025 and early 2026, with a significant number of new large horsepower units already under contract [8] - The company aims to maintain a balance between shareholder returns and growth, as evidenced by the inaugural dividend and its increase [7][16] - The focus remains on technology leadership and service excellence to improve competitive positioning [7] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the ability to deliver improved performance despite global macroeconomic uncertainty [9] - The company raised its full-year 2025 adjusted EBITDA guidance to $78 million-$81 million, reflecting a 2% increase at the midpoint from previous guidance [17] - Preliminary expectations for 2026 growth CapEx are set at $50 million-$70 million, indicating another year of organic growth [17] Other Important Information - The company has improved its income tax receivable and is awaiting payment processing [11] - Capital expenditures totaled $41.9 million, with $39.1 million allocated to growth CapEx [15] - The leverage ratio was 2.5x, remaining the lowest among public compression peers [16] Q&A Session Summary Question: Can you talk about the outlook for 2026 and customer conversations? - Management noted that there is no hesitancy from customers regarding 2026 contracts, with a broad range of interest observed [22][23] Question: What are the opportunities for margin improvement? - Management indicated that margins are expected to remain in the low 60s in the near term, with potential for improvement through a shift to large horsepower [25] Question: Is the majority of demand still for gas lift in the Permian? - Management confirmed that while gas lift remains the majority, there is growing demand for data center natural gas loads [29][30] Question: How is the relationship with Devon Energy developing? - Management highlighted a long-term relationship with Devon, emphasizing technology and service quality as key drivers for expansion [46][47] Question: How does the company balance dividend increases with growth opportunities? - Management stated that while they aim for a growing dividend, it will not impact the ability to grow the business significantly [44][45] Question: What is the outlook for capital expenditures in 2026? - Management indicated that 2026 is expected to be in line with 2024, with significant growth opportunities anticipated [54][55]

Financial Data and Key Metrics Changes - The company reported record results in Q3, with adjusted EBITDA of $20.8 million, up approximately 15% year-over-year and 6% sequentially [6][14] - Total rental revenue grew 11.1% year-over-year and 4.9% sequentially to $41.5 million, driven by a 27,000 horsepower increase [14] - Net income was $5.8 million or $0.46 per diluted share, an increase of $800,000 year-over-year and $600,000 sequentially [14] - The leverage ratio was 2.5 times, up from 2.31 times in the previous quarter, remaining the lowest among public compression peers [16] Business Line Data and Key Metrics Changes - Rented horsepower ended the quarter at approximately 526,000, an 11% increase year-over-year and 5% sequentially [15] - Fleet utilization reached a record 84.1%, up 204 basis points year-over-year and 45 basis points sequentially [15] - Rental adjusted gross margin was $25.5 million, up $2.6 million year-over-year and $1.5 million sequentially, with a margin percentage of 61.5% [14] Market Data and Key Metrics Changes - The company is taking market share in large horsepower compression, with all new sets under long-term contracts [5] - Devon Energy now represents more than 10% of year-to-date revenue, indicating strong customer relationships [5] Company Strategy and Development Direction - The company plans to add approximately 90,000 horsepower over 2025 and early 2026, with significant new electric and gas units already under contract [8] - The company aims to optimize fleet assets and improve rental revenue per horsepower, which finished the quarter at $27.08 per horsepower per month, a 1.7% sequential increase [10] - The company is focused on balancing capital returns with growth opportunities, having initiated a quarterly dividend of $0.10 per share [7][16] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the ability to deliver improved performance despite global macroeconomic uncertainty, citing strong demand for compression tied to existing production [9] - The company anticipates continued growth in 2026, with preliminary expectations for growth CapEx of $50 million to $70 million [17] - Management highlighted the importance of technology and service excellence in maintaining competitive advantages [7][9] Other Important Information - The company is not focused on real estate investments but aims to convert non-productive assets into productive horsepower [11] - The company is seeing strong demand for compression driven by rising electricity demand and LNG infrastructure buildout [9] Q&A Session Summary Question: Can you talk about the outlook for 2026 and customer conversations? - Management noted that there is no hesitancy from customers regarding 2026 contracts, with a broad range of interest observed [22][23] Question: What are the opportunities for margin improvement? - Management indicated that margins are expected to remain in the low 60s in the near term, with potential for improvement through a mix shift to large horsepower [25] Question: Is the majority of demand still for gas lift in the Permian? - Management confirmed that while gas lift remains the majority, there is growing demand for data center natural gas loads, creating incremental opportunities [29][30] Question: How did the relationship with Devon Energy develop? - Management explained that the long-term relationship with Devon was strengthened by demonstrating the capabilities of their technology and service [46][47] Question: What is the outlook for capital expenditures in 2026? - Management indicated that 2026 is expected to be in line with 2024, with significant growth anticipated [54][55]

Financial Data and Key Metrics Changes - The company reported record results in Q3 2025, with adjusted EBITDA of $20.8 million, up approximately 15% year-over-year and 6% sequentially [5][12] - Total rental revenue grew 11.1% year-over-year and 4.9% sequentially to $41.5 million, driven by a 27,000 horsepower increase [12] - Net income was $5.8 million or $0.46 per diluted share, an increase of $800,000 year-over-year and $600,000 sequentially [13] - The leverage ratio was 2.5 times, up from 2.31 times in the previous quarter, remaining the lowest among public compression peers [15] Business Line Data and Key Metrics Changes - Rented horsepower increased to approximately 526,000, an 11% increase year-over-year and 5% sequentially [14] - Fleet utilization reached a record 84.1%, up 204 basis points year-over-year and 45 basis points sequentially [14] - Rental adjusted gross margin was $25.5 million, up $2.6 million year-over-year, with a margin percentage of 61.5%, reflecting sustained pricing discipline [12] Market Data and Key Metrics Changes - The company is taking market share in large horsepower compression, with all new sets under long-term contracts, half of which are large horsepower electric units [5] - The company noted strong demand for compression driven by oil production efficiency, reliability, and emissions performance [8] Company Strategy and Development Direction - The company plans to add approximately 90,000 horsepower over 2025 and early 2026, with significant new electric and gas units already under contract [7] - The company aims to optimize fleet assets and improve rental revenue per horsepower, which finished the quarter at $27.08 per horsepower per month, a 1.7% sequential increase [9] - The company is focused on converting non-productive assets into productive horsepower, enhancing fleet expansion [10] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in delivering improved performance despite global macroeconomic uncertainty, citing strong demand for compression tied to existing production [8] - The company raised full-year 2025 adjusted EBITDA guidance to $78-$81 million, reflecting a 2% increase at the midpoint from previous guidance [16] - Preliminary expectations for 2026 growth CapEx are set at $50 million-$70 million, indicating continued organic growth [16] Other Important Information - The company paid out its inaugural quarterly dividend of $0.10 per share and plans to increase the fourth-quarter dividend by 10% to $0.11 per share [6] - The company maintains the best leverage position among its public compression peers, allowing for both growth and shareholder returns [6] Q&A Session Summary Question: Outlook for 2026 and customer conversations - Management noted that there is no hesitancy from customers regarding 2026 contracts, with a broad range of interest observed [20][22] - Lead times for new unit fabrication vary, but management is optimistic about meeting customer demand in the second half of 2026 [23] Question: Opportunities for margin improvement - Management indicated that margins are expected to remain in the low 60s in the near term, with potential for improvement through a mix shift to large horsepower [24] Question: End market uses for larger compressors - The majority of demand remains for gas lift in the Permian, but there is growing demand for data center natural gas loads, creating incremental opportunities [27] Question: CapEx outlook for 2026 - Management expects 2026 to be generally in line with 2024, with significant growth opportunities already contracted [46][47] Question: Increasing dividend and balancing growth - The decision to increase the dividend reflects confidence in future growth while maintaining a balance between capital returns and growth opportunities [39]