Enerflex (NYSE:EFXT) Q4 2025 Earnings call February 26, 2026 10:00 AM ET Speaker2Good day, and thank you for standing by. Welcome to the Enerflex fourth quarter 2025 earnings conference call. At this time, all participants are in a listen-only mode. After the speaker's presentation, there will be a question-and-answer session. To ask a question during the session, you will need to press star 11 on your telephone. You will then hear an automated message advising your hand is raised. To withdraw your question ...

Core Viewpoint - Natural Gas Services Group, Inc. has declared a quarterly cash dividend of $0.11 per share, marking a 10% increase from the initial dividend paid in Q3 2025 [1]. Group 1: Dividend Announcement - The quarterly cash dividend of $0.11 per share will be paid on March 4, 2026, to stockholders of record as of February 18, 2026 [1]. - The dividend for Q1 2026 is consistent with the dividend level from Q4 2025, reflecting a positive trend in dividend payments [1]. Group 2: Company Overview - Natural Gas Services Group is a prominent provider of natural gas compression equipment, technology, and services to the energy sector [3]. - The company designs, rents, sells, and maintains natural gas compressors for oil and natural gas production and plant facilities [3]. - The headquarters is located in Midland, Texas, with a fabrication facility in Tulsa, Oklahoma, and service facilities in major oil and natural gas producing basins across the U.S. [3].

Core Viewpoint - Natural Gas Services Group, Inc. has declared a quarterly cash dividend of $0.11 per share, reflecting a 10% increase compared to the initial dividend paid in Q3 2025 [1] Group 1: Dividend Announcement - The quarterly cash dividend of $0.11 per share will be paid on March 4, 2026, to stockholders of record as of February 18, 2026 [1] - The annualized dividend amount is $0.44 per share, consistent with the fourth quarter 2025 dividend level [1] Group 2: Company Overview - Natural Gas Services Group is a leading provider of natural gas compression equipment, technology, and services to the energy industry [2] - The company designs, rents, sells, and maintains natural gas compressors for oil and natural gas production and plant facilities [2] - NGS is headquartered in Midland, Texas, with a fabrication facility in Tulsa, Oklahoma, and service facilities in major oil and natural gas producing basins in the U.S. [2]

Core Viewpoint - Natural Gas Services Group, Inc. (NGS) has initiated a quarterly cash dividend of $0.10 per common share, marking a significant shift in its capital return strategy [2][3]. Financial Performance - The company reported strong financial results, which contributed to management's confidence in the long-term outlook of the business [3]. - NGS's balance sheet is described as one of the best in the industry, supporting its growth and market share expansion [4]. Dividend Strategy - The initial dividend of $0.10 per share is seen as the first step in a broader capital return strategy, with potential for future increases as the business scales [4]. - Following the initial dividend, NGS raised its quarterly cash dividend to $0.11 per share in the third quarter, reflecting confidence in cash generation and disciplined capital allocation [5]. Company Overview - NGS provides natural gas compression equipment, technology, and services to the energy industry, positioning itself for growth in a competitive market [5].

Core Viewpoint - Natural Gas Services Group, Inc. ("NGS") announces the retirement of Stephen Taylor, Chairman Emeritus, from the Board of Directors, concluding over two decades of leadership and service to the company [1][5]. Leadership Transition - Stephen Taylor served as CEO and Chairman for nearly 20 years, during which NGS experienced significant growth and developed new operational capabilities [2]. - Under Taylor's leadership, NGS expanded its national footprint and broadened its equipment portfolio, establishing a large horsepower fleet [2][3]. - NGS transformed from a small compression fabricator into a large-scale rental compression platform serving major U.S. oil and gas basins [3]. Legacy and Impact - Taylor completed a planned leadership transition in February 2024, passing the CEO role to Justin Jacobs while continuing to provide guidance as a director [4]. - His leadership was instrumental in building a durable business with strong fundamentals, and his guidance during the CEO transition was invaluable [5]. - Taylor expressed pride in NGS's achievements and confidence in the company's future success, retaining a significant equity interest in the company [5]. Board Governance - The Board of Directors is engaged in regular governance and succession planning processes and will announce any changes to Board composition as they develop [5].

Core Insights - Dividend stocks can lose momentum due to external news, but this does not reflect changes in business fundamentals, creating potential investment opportunities [1] - The focus is on dividend stocks with intact underlying stories but more attractive valuations due to price declines, appealing to income-focused investors [2] Company Overview: Kodiak Gas Services Inc (KGS) - Kodiak Gas Services Inc. provides natural gas compression equipment and has reported a year-over-year sales decline of nearly 1% to $322 million [7] - The company experienced a net loss that increased by 148% to $14 million, attributed to higher depreciation and interest expenses, but is expected to benefit from new capacity coming online [7] - The forward price-to-earnings ratio is 15.65, below the sector average of 18.13, indicating potential undervaluation [8] Financial Metrics - Kodiak Gas Services Inc. offers a forward annual dividend of $1.96, resulting in a yield of 5.19%, the highest among the listed stocks [8] - A consensus of 13 analysts rates the stock as a "Strong Buy," with a potential upside of 27% if it reaches a high price target of $48 [8]

Core Viewpoint - The article emphasizes the importance of identifying and maintaining stock price trends for successful short-term investing, highlighting Natural Gas Services (NGS) as a strong candidate for trend investors due to its recent performance and fundamental strength [1][2][4]. Group 1: Stock Performance - NGS has experienced a significant price increase of 32.9% over the past 12 weeks, indicating strong investor interest [4]. - The stock has also shown a price increase of 9.4% over the last four weeks, suggesting that the upward trend is still intact [5]. - Currently, NGS is trading at 98.9% of its 52-week high-low range, indicating a potential breakout [6]. Group 2: Fundamental Strength - NGS holds a Zacks Rank of 1 (Strong Buy), placing it in the top 5% of over 4,000 ranked stocks based on earnings estimate revisions and EPS surprises [6]. - The stock has an Average Broker Recommendation of 1 (Strong Buy), reflecting high optimism from the brokerage community regarding its near-term price performance [7]. - The Zacks Rank system has a strong historical performance, with Rank 1 stocks generating an average annual return of +25% since 1988 [7]. Group 3: Investment Strategy - The "Recent Price Strength" screen is a useful tool for identifying stocks like NGS that have the fundamental strength to maintain their upward trend [3]. - In addition to NGS, there are other stocks that meet the criteria of the "Recent Price Strength" screen, providing additional investment opportunities [8]. - The article suggests utilizing various Zacks Premium Screens tailored to different investing styles to find potential winning stocks [8].

Core Viewpoint - The article emphasizes the importance of identifying sustainable trends in short-term investing, highlighting Natural Gas Services (NGS) as a strong candidate for trend investors due to its recent price performance and favorable fundamentals [1][4][6]. Group 1: Price Performance - NGS has experienced a solid price increase of 15% over the past 12 weeks, indicating strong investor interest [4]. - The stock has also seen an 8.3% price increase over the last four weeks, suggesting that the upward trend is still intact [5]. - Currently, NGS is trading at 92.2% of its 52-week high-low range, indicating a potential breakout [6]. Group 2: Fundamental Strength - NGS holds a Zacks Rank 1 (Strong Buy), placing it in the top 5% of over 4,000 ranked stocks based on earnings estimate revisions and EPS surprises [6]. - The stock has an Average Broker Recommendation of 1 (Strong Buy), reflecting high optimism from the brokerage community regarding its near-term price performance [7]. Group 3: Investment Strategy - The "Recent Price Strength" screen is a useful tool for identifying stocks like NGS that have the fundamental strength to maintain their upward momentum [3]. - The article suggests that there are several other stocks passing through this screen, indicating potential investment opportunities for trend investors [8].

Core Viewpoint - The article emphasizes the importance of identifying and sustaining trends in short-term investing, highlighting that confirming strong fundamentals and positive earnings estimates is crucial for maintaining momentum in stock prices [1]. Group 1: Stock Screening and Performance - The "Recent Price Strength" screen is a useful tool for investors to identify stocks that are trending upwards, supported by strong fundamentals and trading near their 52-week high [2]. - Natural Gas Services (NGS) has shown a solid price increase of 16.9% over the past 12 weeks, indicating investor confidence in its potential upside [3]. - NGS has also maintained a price increase of 11.2% over the last four weeks, suggesting that the upward trend is still intact [4]. Group 2: Technical Indicators and Rankings - NGS is currently trading at 93.1% of its 52-week high-low range, indicating a potential breakout opportunity [5]. - The stock holds a Zacks Rank 1 (Strong Buy), placing it in the top 5% of over 4,000 ranked stocks based on earnings estimate revisions and EPS surprises, which are critical for near-term price movements [5][6]. - The Average Broker Recommendation for NGS is also 1 (Strong Buy), reflecting strong optimism from the brokerage community regarding its near-term price performance [6]. Group 3: Broader Investment Strategy - In addition to NGS, there are multiple stocks that meet the criteria of the "Recent Price Strength" screen, suggesting a variety of investment opportunities for trend-focused investors [7]. - The article encourages investors to utilize various Zacks Premium Screens tailored to different investing styles to identify potential winning stocks [7].

Core Viewpoint - The article emphasizes the importance of identifying and sustaining trends in short-term investing, highlighting Natural Gas Services (NGS) as a strong candidate for trend investors due to its recent price performance and favorable fundamentals [1][4][6]. Price Performance - NGS has experienced a solid price increase of 14.3% over the past 12 weeks, indicating strong investor interest [4]. - The stock has also seen a price increase of 13.4% over the last four weeks, suggesting that the upward trend is maintained [5]. Trading Range - NGS is currently trading at 91.8% of its 52-week high-low range, indicating a potential breakout opportunity [6]. Fundamental Strength - NGS holds a Zacks Rank of 1 (Strong Buy), placing it in the top 5% of over 4,000 ranked stocks based on earnings estimate revisions and EPS surprises [6]. - The stock has an Average Broker Recommendation of 1 (Strong Buy), reflecting high optimism from the brokerage community regarding its near-term price performance [7]. Additional Insights - The article suggests that NGS may continue its price trend without reversal in the near future, and encourages investors to explore other stocks that meet similar criteria [8]. - It also mentions the availability of over 45 Zacks Premium Screens to assist in identifying potential winning stocks based on individual investing styles [8].