Natural Gas Services Group Announces Expansion of Credit Facility
Natural Gas Services Group (NGS) has secured a $100 million expansion of its existing credit facility, bringing total commitments to $400 million with an additional $100 million accordion. The expanded facility, effective April 18, 2025, includes improved terms with a 50 to 75 basis point reduction in interest rates at comparable leverage levels and a more flexible leverage covenant starting mid-2026.
The enhanced financial flexibility will support NGS's ongoing fleet growth, particularly focusing on large horsepower and electric drive rental compression units in the Permian Basin. The company secured this expansion despite current market volatility and economic uncertainty, demonstrating lender confidence in their business model and future prospects.
Natural Gas Services Group (NGS) ha ottenuto un incremento di 100 milioni di dollari della sua linea di credito esistente, portando gli impegni totali a 400 milioni di dollari con un'ulteriore opzione di 100 milioni. La linea ampliata, efficace dal 18 aprile 2025, prevede condizioni migliorate con una riduzione dei tassi di interesse di 50-75 punti base a livelli di leva finanziaria comparabili e un vincolo di leva più flessibile a partire da metà 2026.
Questa maggiore flessibilità finanziaria sosterrà la continua crescita della flotta di NGS, concentrandosi in particolare su unità di compressione a noleggio ad alta potenza e a trazione elettrica nel Bacino del Permiano. L’azienda ha ottenuto questa espansione nonostante la volatilità del mercato e l’incertezza economica attuali, dimostrando la fiducia dei finanziatori nel loro modello di business e nelle prospettive future.
Natural Gas Services Group (NGS) ha asegurado una expansión de 100 millones de dólares en su línea de crédito existente, elevando los compromisos totales a 400 millones de dólares con una opción adicional de 100 millones. La línea ampliada, vigente desde el 18 de abril de 2025, incluye mejores condiciones con una reducción de 50 a 75 puntos básicos en las tasas de interés a niveles comparables de apalancamiento y un convenio de apalancamiento más flexible a partir de mediados de 2026.
La mayor flexibilidad financiera apoyará el crecimiento continuo de la flota de NGS, enfocándose especialmente en unidades de compresión de alquiler de alta potencia y accionamiento eléctrico en la Cuenca Pérmica. La compañía logró esta expansión a pesar de la volatilidad del mercado y la incertidumbre económica actuales, demostrando la confianza de los prestamistas en su modelo de negocio y perspectivas futuras.
Natural Gas Services Group (NGS)는 기존 신용 한도를 1억 달러 증액하여 총 약정액을 4억 달러로 늘리고 추가로 1억 달러의 옵션을 확보했습니다. 2025년 4월 18일부터 발효되는 이 확대된 한도는 유사한 레버리지 수준에서 금리 50~75 베이시스 포인트 인하와 2026년 중반부터 더 유연한 레버리지 조건을 포함합니다.
향상된 재무 유연성은 특히 퍼미안 분지에서 대출력 및 전기 구동 임대 압축 장비를 중심으로 NGS의 지속적인 함대 확장을 지원할 것입니다. 회사는 현재의 시장 변동성과 경제적 불확실성에도 불구하고 이 확장을 확보하여 대출 기관들이 그들의 비즈니스 모델과 미래 전망에 신뢰를 보이고 있음을 입증했습니다.
Natural Gas Services Group (NGS) a obtenu une extension de 100 millions de dollars de sa facilité de crédit existante, portant les engagements totaux à 400 millions de dollars avec une option supplémentaire de 100 millions. La facilité élargie, effective à partir du 18 avril 2025, inclut des conditions améliorées avec une réduction des taux d'intérêt de 50 à 75 points de base à des niveaux de levier comparables et une clause de levier plus flexible à partir de mi-2026.
Cette flexibilité financière accrue soutiendra la croissance continue de la flotte de NGS, en se concentrant particulièrement sur les unités de compression de location à forte puissance et à entraînement électrique dans le bassin permien. L’entreprise a obtenu cette extension malgré la volatilité actuelle du marché et l’incertitude économique, démontrant la confiance des prêteurs dans leur modèle commercial et leurs perspectives futures.
Natural Gas Services Group (NGS) hat eine Erweiterung seiner bestehenden Kreditfazilität um 100 Millionen US-Dollar gesichert, wodurch die Gesamtverpflichtungen auf 400 Millionen US-Dollar steigen, mit einer zusätzlichen 100-Millionen-Option. Die erweiterte Fazilität, gültig ab dem 18. April 2025, beinhaltet verbesserte Konditionen mit einer Senkung der Zinssätze um 50 bis 75 Basispunkte bei vergleichbarem Verschuldungsgrad und einem flexibleren Verschuldungskovenant ab Mitte 2026.
Die erhöhte finanzielle Flexibilität wird das fortlaufende Wachstum der Flotte von NGS unterstützen, insbesondere mit Fokus auf Mietkompressionseinheiten mit hoher Leistung und Elektroantrieb im Permian-Becken. Das Unternehmen sicherte sich diese Erweiterung trotz der aktuellen Marktvolatilität und wirtschaftlichen Unsicherheit, was das Vertrauen der Kreditgeber in ihr Geschäftsmodell und die zukünftigen Aussichten unterstreicht.
- Secured $100 million credit facility expansion, increasing total commitments to $400 million
- Interest rate reduction of 50-75 basis points at comparable leverage levels
- More flexible leverage covenant terms starting mid-2026
- Additional capital available for fleet expansion and growth initiatives
- None.
Insights
NGS secured $100M credit expansion with better terms, strengthening financial flexibility for growth despite market volatility.
NGS's
The enhanced facility specifically targets the company's strategic priorities - funding growth in large horsepower and electric drive rental compression units in the Permian Basin. This capital availability allows NGS to pursue its stated goals of "organic growth and market share gains while improving customer experience" without immediately impacting their balance sheet until drawn upon.
Notably, the amended facility includes a more flexible leverage covenant beginning mid-2026, providing additional financial maneuvering room in the medium term. The successful expansion during challenging market conditions indicates strong lender confidence in NGS's business fundamentals and growth strategy, with the company specifically mentioning both existing and new lending partners participating in the amendment.
Expanded $400M credit facility fuels NGS's strategic push into high-value electric compression in the crucial Permian Basin market.
NGS's expanded credit facility directly supports their focused investment strategy in the Permian Basin, targeting two specific high-value market segments: large horsepower compression units and electric drive technologies. This capital infusion enables their stated goals of driving "organic growth and market share gains" in these specialized segments that serve critical natural gas infrastructure needs.
The company's emphasis on electric drive compression units reflects an important industry direction toward technologies that can potentially offer operational efficiency advantages and address increasing environmental considerations in natural gas compression. Large horsepower units typically serve midstream operations where compression reliability is essential for gas transportation infrastructure.
The Permian Basin focus is strategically significant as this region remains one of North America's most prolific and active production areas, requiring substantial compression infrastructure to move increasing natural gas volumes. By securing improved financing terms during what they describe as "market volatility," NGS has positioned itself to continue executing its specialized compression strategy while enhancing its customer experience, as explicitly stated in their announcement.
This financial flexibility gives NGS the capital foundation to advance its market position in precisely the equipment categories and geographic region they've identified as central to their growth strategy.
The increase of
Midland, Texas, April 22, 2025 (GLOBE NEWSWIRE) -- Natural Gas Services Group, Inc. (“NGS” or the “Company”), a premier provider of natural gas compression equipment, technology, and services to the energy industry, announced today it has closed on a
“We are pleased to announce the expansion and amendment of our credit facility, particularly considering recent financial market volatility and general economic uncertainty. This additional capital supports continued investment in our large horsepower and electric drive rental equipment fleet as we continue to drive organic growth and market share gains while improving our customer experience. Additionally, the amended Facility provides improved economics and terms, including a 50 to 75 basis point reduction in interest rates at comparable leverage levels and a more flexible leverage covenant beginning mid-2026.”
Mr. Jacobs continued, “On behalf of the entire Company, I want to thank our lenders, both existing and new. The amendment of our Facility, especially given markets conditions, reflects the confidence our lending partners have in our business and our future prospects. We remain focused on executing our strategic plan and driving value for all stakeholders. We look forward to reporting our first quarter 2025 results next month.”
The amendment was effective as of April 18, 2025.
About Natural Gas Services Group, Inc. (NGS)
Natural Gas NGS is a leading provider of natural gas compression equipment, technology, and services to the energy industry. The Company rents, operates and maintains natural gas compressors for oil and gas production and processing facilities. In addition, the Company designs and assembles compressor units for rental to its customers and provides aftermarket services in the form of call-out services on customer-owned equipment as well as commissioning of new units for customers. NGS is headquartered in Midland, Texas, with a fabrication facility located in Tulsa, Oklahoma, a rebuild shop located in Midland, Texas, and service facilities located in major oil and natural gas producing basins in the U.S. Additional information can be found at www.ngsgi.com.
For More Information, Contact:
Anna Delgado, Investor Relations
(432) 262-2700
FAQ
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