Natural Gas Services Group (NGS) Investor presentation summary

Business overview

• 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 most revenue from the Permian Basin.

• Rental contracts typically last up to 60 months, with high customer retention beyond initial terms.

• 82% of monthly rental revenue is under term, with a weighted average remaining tenor of 2.4 years.

• Key customers are major E&P companies with strong credit profiles, ensuring stable revenue streams.

Industry fundamentals and market position

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

• Most U.S. shale oil wells require compression equipment for economic operation.

• Demand for rented compression exceeds supply due to capital discipline and supply chain constraints.

• Rental compression business is resilient to commodity price swings and provides recurring, stable cash flows.

Technology and operational strengths

• 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.

• High utilization rate of 85% across the fleet, with 90% of rental revenue supporting oil production.