Natural Gas Services Group Inc (NYSE: NGS)

Natural Gas Services Group, Inc. is a premier provider of natural gas and electric compression equipment, technology, and services to the energy industry. The company focuses on the rental, design, installation, service, and maintenance of natural gas engine and electric motor drive compressors for oil and gas production and processing facilities.

The company generates revenue primarily from the rental of its compressor fleet, which contributed to a 14 percent increase in rental revenues to approximately $164 million in 2025. Additional revenue streams include the sale of compressor components and replacement parts, and aftermarket services such as maintenance, overhauls, and installation support for customer owned equipment. Its customers are mainly exploration and production companies operating in unconventional and conventional oil and gas fields across the United States.

The company operates through the following segments: Rental, Sales, and Aftermarket Services.

• Rental: The company rents natural gas engine and electric motor drive compressors for oil and gas production, offering large, medium and small horsepower units with contract terms of 12 to 60 months that often extend month to month; it maintains and services all rented equipment, and as of December 31, 2025 operated a fleet of 1,914 compressors totaling 662,542 horsepower, with 1,245 units representing 562,676 horsepower actively rented, an electric powered portion of about three percent of the fleet, and utilization rates of 65.0 percent on a unit basis and 84.9 percent on a horsepower basis.

• Sales: The company designs and engineers compressor components sourced from OEM manufacturers and stocks replacement parts at its Tulsa, Oklahoma facility and field service locations to support customer needs.

• Aftermarket Services: The company provides maintenance and repair of customer owned compressors on an as needed or contractual basis, handles installation and start up of new units, and conducts engine and compressor overhauls according to condition or time based schedules or upon customer request.

Natural Gas Services Group, Inc. holds a competitive position in the fragmentation compression services market by emphasizing high mechanical availability, innovative emissions reducing technologies such as eComp and SMART, and strong long term relationships with exploration and production producers. While it faces competitors with greater financial resources, the company believes it differentiates itself through unit availability, customer service, flexibility, quality, reliability, and pricing.

The company serves approximately 60 customers, primarily exploration and production firms ranging from affiliates of major integrated oil companies to independent regional operators, with Occidental Permian, Ltd. and Devon Energy Corporation representing significant accounts that together contributed a majority of its revenue in recent years.