Natural Gas Services Group (NGS) Investor presentation summary

Company overview and business model

• Provides natural gas compression equipment and services, focusing on rental, operation, and maintenance for oil and gas production applications.

• Operates a large, medium, and small horsepower fleet, with 80% of rental revenue from the Permian Basin.

• Rental contracts typically last up to 60 months, with most customers extending beyond the initial term.

• Key customers are major E&P companies with strong credit profiles; 78% of monthly rental revenue is under term contracts with a 2.2-year weighted average remaining tenor.

• New units are generally pre-contracted, ensuring consistent revenue streams.

Industry fundamentals and market dynamics

• Oil production is stable and projected to grow, especially in the Permian Basin, driving demand for compression equipment.

• Most U.S. shale oil wells require compression to operate economically; artificial lift is essential for productivity.

• Capital discipline and supply chain challenges have constrained compression supply amid growing demand.

• Rental compression is resilient to commodity price swings due to long-term contracts and stable production needs.

Technology and operational advantages

• Proprietary SMART system reduces unplanned shutdowns and increases productivity by 5–8%.

• eComp system reduces emissions and enhances operational data analytics.

• Assets feature remote monitoring and telemetry for real-time performance insights.