Natural Gas Services Group, Inc. Reports Fourth Quarter and Year-End 2024 Financial and Operating Results; Provides 2025 Guidance
Natural Gas Services Group (NGS) reported strong financial results for Q4 and full-year 2024, with significant growth across key metrics. Rental revenue reached $38.2 million in Q4 (+21% YoY) and $144.2 million for 2024 (+36% YoY). The company achieved net income of $2.9 million ($0.23 per share) in Q4 and $17.2 million ($1.37 per share) for 2024, marking increases of 68% and 263% respectively.
Operating cash flow improved substantially to $66.5 million for 2024, compared to $18.0 million in 2023. The company's Adjusted EBITDA reached record levels at $69.5 million for 2024, up 52% from 2023.
For 2025 guidance, NGS expects growth capital expenditures of $95-120 million, targeting an 18% increase in rented horsepower to approximately 90,000. The company projects 2025 Adjusted EBITDA of $74-78 million, representing a 9% increase over 2024 at the midpoint.
Natural Gas Services Group (NGS) ha riportato risultati finanziari solidi per il quarto trimestre e l'intero anno 2024, con una crescita significativa in vari indicatori chiave. I ricavi da noleggio hanno raggiunto i 38,2 milioni di dollari nel quarto trimestre (+21% rispetto all'anno precedente) e 144,2 milioni di dollari per il 2024 (+36% rispetto all'anno precedente). L'azienda ha registrato un reddito netto di 2,9 milioni di dollari (0,23 dollari per azione) nel quarto trimestre e 17,2 milioni di dollari (1,37 dollari per azione) per il 2024, segnando aumenti rispettivamente del 68% e del 263%.
Il flusso di cassa operativo è migliorato sostanzialmente a 66,5 milioni di dollari per il 2024, rispetto ai 18,0 milioni di dollari nel 2023. L'EBITDA rettificato dell'azienda ha raggiunto livelli record a 69,5 milioni di dollari per il 2024, in aumento del 52% rispetto al 2023.
Per le previsioni del 2025, NGS prevede spese in conto capitale per la crescita comprese tra 95 e 120 milioni di dollari, puntando a un aumento del 18% della potenza noleggiata a circa 90.000. L'azienda prevede un EBITDA rettificato per il 2025 compreso tra 74 e 78 milioni di dollari, rappresentando un aumento del 9% rispetto al 2024 al valore medio.
Natural Gas Services Group (NGS) reportó resultados financieros sólidos para el cuarto trimestre y el año completo 2024, con un crecimiento significativo en métricas clave. Los ingresos por alquiler alcanzaron los 38.2 millones de dólares en el cuarto trimestre (+21% interanual) y 144.2 millones de dólares para 2024 (+36% interanual). La compañía logró un ingreso neto de 2.9 millones de dólares (0.23 dólares por acción) en el cuarto trimestre y 17.2 millones de dólares (1.37 dólares por acción) para 2024, marcando aumentos del 68% y 263% respectivamente.
El flujo de efectivo operativo mejoró sustancialmente a 66.5 millones de dólares para 2024, en comparación con 18.0 millones de dólares en 2023. El EBITDA ajustado de la compañía alcanzó niveles récord de 69.5 millones de dólares para 2024, un aumento del 52% respecto a 2023.
Para la guía de 2025, NGS espera gastos de capital por crecimiento de entre 95 y 120 millones de dólares, con un objetivo de aumento del 18% en la potencia alquilada a aproximadamente 90,000. La compañía proyecta un EBITDA ajustado para 2025 de entre 74 y 78 millones de dólares, lo que representa un aumento del 9% sobre 2024 en el punto medio.
자연가스 서비스 그룹(NGS)는 2024년 4분기 및 전체 연도의 강력한 재무 결과를 보고하며 주요 지표에서 상당한 성장을 기록했습니다. 임대 수익은 4분기 동안 3,820만 달러(+21% 전년 대비) 및 2024년에는 1억 4,420만 달러(+36% 전년 대비)에 도달했습니다. 회사는 4분기에 290만 달러(주당 0.23달러)의 순이익을 기록했으며, 2024년에는 1,720만 달러(주당 1.37달러)로 68%와 263% 각각 증가했습니다.
운영 현금 흐름은 2024년 6,650만 달러로 크게 개선되었으며, 2023년의 1,800만 달러와 비교됩니다. 회사의 조정 EBITDA는 2024년 6,950만 달러로 기록적인 수준에 도달했으며, 2023년 대비 52% 증가했습니다.
2025년 가이드라인에 따르면, NGS는 9,500만 달러에서 1억 2,000만 달러의 성장 자본 지출을 예상하며, 임대 마력의 18% 증가를 목표로 약 90,000에 이를 것으로 보입니다. 회사는 2025년 조정 EBITDA를 7,400만 달러에서 7,800만 달러로 예상하며, 이는 2024년 중간값 대비 9% 증가를 나타냅니다.
Natural Gas Services Group (NGS) a annoncé des résultats financiers solides pour le quatrième trimestre et l'année entière 2024, avec une croissance significative dans des indicateurs clés. Les revenus locatifs ont atteint 38,2 millions de dollars au quatrième trimestre (+21% par rapport à l'année précédente) et 144,2 millions de dollars pour 2024 (+36% par rapport à l'année précédente). L'entreprise a réalisé un revenu net de 2,9 millions de dollars (0,23 dollar par action) au quatrième trimestre et de 17,2 millions de dollars (1,37 dollar par action) pour 2024, marquant des augmentations respectives de 68% et 263%.
Le flux de trésorerie opérationnel s'est considérablement amélioré pour atteindre 66,5 millions de dollars en 2024, contre 18,0 millions de dollars en 2023. L'EBITDA ajusté de l'entreprise a atteint des niveaux record de 69,5 millions de dollars pour 2024, soit une augmentation de 52% par rapport à 2023.
Pour les prévisions de 2025, NGS prévoit des dépenses d'investissement en capital de 95 à 120 millions de dollars, visant une augmentation de 18% de la puissance louée à environ 90 000. L'entreprise projette un EBITDA ajusté pour 2025 compris entre 74 et 78 millions de dollars, représentant une augmentation de 9% par rapport à 2024 au point médian.
Natural Gas Services Group (NGS) hat für das vierte Quartal und das Gesamtjahr 2024 starke finanzielle Ergebnisse gemeldet, mit einem signifikanten Wachstum in wichtigen Kennzahlen. Die Mieteinnahmen beliefen sich im vierten Quartal auf 38,2 Millionen Dollar (+21% im Jahresvergleich) und auf 144,2 Millionen Dollar für 2024 (+36% im Jahresvergleich). Das Unternehmen erzielte einen Nettoertrag von 2,9 Millionen Dollar (0,23 Dollar pro Aktie) im vierten Quartal und 17,2 Millionen Dollar (1,37 Dollar pro Aktie) für 2024, was jeweils einem Anstieg von 68% und 263% entspricht.
Der operative Cashflow verbesserte sich erheblich auf 66,5 Millionen Dollar für 2024, verglichen mit 18,0 Millionen Dollar im Jahr 2023. Das bereinigte EBITDA des Unternehmens erreichte mit 69,5 Millionen Dollar für 2024 Rekordwerte, was einem Anstieg von 52% gegenüber 2023 entspricht.
Für die 2025 Prognose erwartet NGS Investitionen in Wachstumskapital zwischen 95 und 120 Millionen Dollar, mit dem Ziel, die angemietete Leistung um 18% auf etwa 90.000 zu steigern. Das Unternehmen prognostiziert für 2025 ein bereinigtes EBITDA von 74 bis 78 Millionen Dollar, was einen Anstieg von 9% gegenüber 2024 im Mittelwert darstellt.
- Record Adjusted EBITDA of $69.5 million in 2024, up 52% YoY
- Net income increased 263% to $17.2 million in 2024
- Rental revenue grew 36% to $144.2 million in 2024
- Operating cash flow improved significantly to $66.5 million in 2024
- Leverage ratio improved from 2.53x to 2.36x during 2024
- Utilized rental fleet approached 500,000 horsepower, up 17% YoY
- Total debt increased by $6 million during 2024
- Sequential decline in net income from $0.40 to $0.23 per share in Q4
- Growth capital expenditures expected to increase significantly to $95-120 million in 2025
- Projected 9% EBITDA growth for 2025 shows slower growth compared to 2024's 52% increase
Insights
NGS has delivered exceptional financial performance for 2024 with
The company's capital efficiency has improved markedly, with total debt increasing by only
For 2025, NGS projects
The company's ability to grow its fleet by
Midland, Texas, March 17, 2025 (GLOBE NEWSWIRE) -- Natural Gas Services Group, Inc. (“NGS” or the “Company”) (NYSE:NGS), a leading provider of natural gas compression equipment, technology, and services to the energy industry, today announced financial results for the three months and year-ended December 31, 2024. The Company also provided guidance for its full year 2025, anticipating significant top- and bottom-line growth with strong momentum moving into 2026.
Fourth Quarter and Full Year 2024 Highlights
- Rental revenue of
$38.2 million for the fourth quarter and$144.2 million for the full year 2024, representing increases of21% and36% , respectively, compared to the prior year comparable periods.
- Net income of
$2.9 million or$0.23 per diluted share for the fourth quarter and$17.2 million or$1.37 per diluted share for the full year 2024, representing increases of68% and263% , respectively, compared to the prior fourth quarter and full year 2023 periods.
- Cash flow generated from operating activities of
$9.4 million for the fourth quarter and$66.5 million for the full year 2024. This compares to net cash used in operating activities of$7.7 million for the fourth quarter and cash generated of$18.0 million for the full year 2023.
- Adjusted EBITDA of
$18.0 million for the fourth quarter and$69.5 million for the full year 2024; 2024 Adjusted EBITDA was52% higher than 2023 and represented the highest level in the Company’s history. Please see Non-GAAP Financial Measures - Adjusted EBITDA, below.
Management Commentary and Outlook
“2024 was a transformational year for Natural Gas Services Group as we executed against our strategic objectives and significantly improved our market presence and financial performance,” stated Justin Jacobs, Chief Executive Officer. “During the year, we enhanced our team and infrastructure, further diversified and expanded our customer base, organically expanded into large horsepower electric units, maintained our industry-leading service levels, and materially increased the size of our overall fleet. I am quite proud of the NGS team as their unwavering dedication to our customers and their passion to excel are the driving forces of our results.”
“2024 was also a record year for NGS as our utilized rental fleet approached 500,000 horsepower and our Adjusted EBITDA increased by over
“Looking forward, we see continued strength in the market. We believe our organic growth rate leads the industry and we are taking market share. This was made possible by the hard work of our service technicians and field service team, our leading compressor technology, and strong partnerships with our customers. We expect 2025 will be another year of significant growth in new large horsepower units and we have already signed material new unit contracts for 2026. We are excited for the future and believe we are well positioned to continue to increase shareholder value.”
Corporate Guidance – 2025 Outlook
In November 2024, the Company noted it expected 2024 Adjusted EBITDA to be in the range of
The Company today provides the following commentary regarding its financial expectations for the 2025 Fiscal Year. For the year ending December 31, 2025, the Company expects growth capital expenditures, which are mostly comprised of new units (essentially all of which are under contract), to be in the range of
Based on the timing of contractual orders and deployments in 2025, the Company expects 2025 Adjusted EBITDA to be in the range of
| Outlook | |
| FY 2025 Adjusted EBITDA | |
| FY 2025 Growth Capital Expenditures | |
| FY 2025 Maintenance Capital Expenditures | |
| Target Return on Invested Capital | At least |
The Company further notes that once all the 2025 growth capital expenditures are spent and the units are deployed, its “run rate” Adjusted EBITDA should increase at a rate (when compared to the fourth quarter of 2024) well in excess of the Company’s anticipated horsepower growth of
2024 Fourth Quarter Financial Results
Revenue: Total revenue for the three months ended December 31, 2024 increased
Gross Margins: Total gross margins, including depreciation expense increased to
Operating Income: Operating income for the three months ended December 31, 2024 was
Net Income: Net income for the three months ended December 31, 2024, was
Cash Flows: At December 31, 2024, cash and cash equivalents were approximately
Adjusted EBITDA: Adjusted EBITDA increased
Debt: Outstanding debt on our revolving credit facility as of December 31, 2024 was
Selected data: The tables below show revenue by product line, gross margin and adjusted gross margin for the trailing five quarters. Adjusted gross margin is the difference between revenue and cost of sales, exclusive of depreciation.
| Revenues | |||||||||
| Three months ended | |||||||||
| December 31, | March 31, | June 30, | September 30, | December 31, | |||||
| 2023 | 2024 | 2024 | 2024 | 2024 | |||||
| (in thousands) | |||||||||
| Rental | $ 31,626 | $ 33,734 | $ 34,926 | $ 37,350 | $ 38,226 | ||||
| Sales | 2,921 | 2,503 | 2,270 | 1,843 | 997 | ||||
| Aftermarket services | 1,674 | 670 | 1,295 | 1,493 | 1,435 | ||||
| Total | $ 36,221 | $ 36,907 | $ 38,491 | $ 40,686 | $ 40,658 | ||||
| Gross Margin | |||||||||
| Three months ended | |||||||||
| December 31, | March 31, | June 30, | September 30, | December 31, | |||||
| 2023 | 2024 | 2024 | 2024 | 2024 | |||||
| (in thousands) | |||||||||
| Rental | $ 12,366 | $ 13,761 | $ 13,211 | $ 15,043 | $ 14,865 | ||||
| Sales | 553 | 253 | (50) | (258) | (531) | ||||
| Aftermarket services | 421 | 163 | 269 | 151 | 296 | ||||
| Total | $ 13,340 | $ 14,177 | $ 13,430 | $ 14,936 | $ 14,630 | ||||
| Adjusted Gross Margin (1) | |||||||||
| Three months ended | |||||||||
| December 31, | March 31, | June 30, | September 30, | December 31, | |||||
| 2023 | 2024 | 2024 | 2024 | 2024 | |||||
| (in thousands) | |||||||||
| Rental | $ 19,199 | $ 20,620 | $ 20,698 | $ 22,908 | $ 23,107 | ||||
| Sales | 620 | 323 | 21 | (185) | (449) | ||||
| Aftermarket services | 440 | 170 | 283 | 169 | 321 | ||||
| Total | $ 20,259 | $ 21,113 | $ 21,002 | $ 22,892 | $ 22,979 | ||||
| Adjusted Gross Margin % | |||||||||
| Three months ended | |||||||||
| December 31, | March 31, | June 30, | September 30, | December 31, | |||||
| 2023 | 2024 | 2024 | 2024 | 2024 | |||||
| Rental | 60.7 % | 61.1 % | 59.3 % | 61.3 % | 60.4 % | ||||
| Sales | 21.2 % | 12.9 % | 0.9 % | (10.0) % | (45.0) % | ||||
| Aftermarket services | 26.3 % | 25.4 % | 21.9 % | 11.3 % | 22.4 % | ||||
| Total | 55.9 % | 57.2 % | 54.6 % | 56.3 % | 56.5 % | ||||
| Compression Units (at end of period) | |||||||||
| Three months ended | |||||||||
| December 31, | March 31, | June 30, | September 30, | December 31, | |||||
| 2023 | 2024 | 2024 | 2024 | 2024 | |||||
| Rented horsepower | 420,432 | 444,220 | 454,568 | 475,534 | 491,756 | ||||
| Fleet horsepower available | 520,365 | 542,256 | 552,599 | 579,699 | 598,840 | ||||
| Horsepower utilization | 80.8 % | 81.9 % | 82.3 % | 82.0 % | 82.1 % | ||||
| Units utilized | 1,247 | 1,245 | 1,242 | 1,229 | 1,208 | ||||
| Fleet units | 1,876 | 1,894 | 1,899 | 1,909 | 1,912 | ||||
| Unit utilization | 66.5 % | 65.7 % | 65.4 % | 64.4 % | 63.2 % | ||||
(1) For a reconciliation of adjusted gross margin to its most directly comparable financial measure calculated and presented in accordance GAAP, please read “Non-GAAP Financial Measures - Adjusted Gross Margin” below.
Non-GAAP Financial Measure – Adjusted Gross Margin: “Adjusted Gross Margin” is defined as total revenue less costs of revenues (excluding depreciation and amortization expense). Adjusted gross margin is included as a supplemental disclosure because it is a primary measure used by our management as it represents the results of revenue and costs (excluding depreciation and amortization expense), which are key components of our operations. Adjusted gross margin differs from gross margin, in that gross margin includes depreciation and amortization expense. We believe Adjusted gross margin is important because it focuses on the current operating performance of our operations and excludes the impact of the prior historical costs of the assets acquired or constructed that are utilized in those operations. Depreciation and amortization expense does not accurately reflect the costs required to maintain and replenish the operational usage of our assets and therefore may not portray the costs from current operating activity. Rather, depreciation and amortization expense reflect the systematic allocation of historical property and equipment costs over their estimated useful lives.
Adjusted gross margin has certain material limitations associated with its use as compared to gross margin. These limitations are primarily due to the exclusion of depreciation and amortization expense, which is material to our results of operations. Because we use capital assets, depreciation and amortization expense is a necessary element of our costs and our ability to generate revenue. In order to compensate for these limitations, management uses this non-GAAP measure as a supplemental measure to other GAAP results to provide a more complete understanding of our performance. As an indicator of our operating performance, Adjusted gross margin should not be considered an alternative to, or more meaningful than, gross margin as determined in accordance with GAAP. Our Adjusted gross margin may not be comparable to a similarly titled measure of another company because other entities may not calculate Adjusted gross margin in the same manner.
The following table calculates our gross margin, the most directly comparable GAAP financial measure, and reconciles it to Adjusted gross margin for the periods presented:
| Adjusted Gross Margin | |||||||||
| Three months ended | |||||||||
| December 31, | March 31, | June 30, | September 30, | December 31, | |||||
| 2023 | 2024 | 2024 | 2024 | 2024 | |||||
| (in thousands) | |||||||||
| Total revenue | $ 36,221 | $ 36,907 | $ 38,491 | $ 40,686 | $ 40,658 | ||||
| Cost of revenue, exclusive of depreciation | (15,962) | (15,794) | (17,489) | (17,794) | (17,679) | ||||
| Depreciation allocable to costs of revenue | (6,919) | (6,936) | (7,572) | (7,956) | (8,349) | ||||
| Gross margin | 13,340 | 14,177 | 13,430 | 14,936 | 14,630 | ||||
| Depreciation allocable to costs of revenue | 6,919 | 6,936 | 7,572 | 7,956 | 8,349 | ||||
| Adjusted gross margin | $ 20,259 | $ 21,113 | $ 21,002 | $ 22,892 | $ 22,979 | ||||
Non-GAAP Financial Measures - Adjusted EBITDA: “Adjusted EBITDA” reflects net income or loss before interest, taxes, depreciation and amortization, non-cash equity-classified stock-based compensation expense, non-recurring restructuring charges including severance expenses, impairments, increases in inventory allowance and retirement of rental equipment. Adjusted EBITDA is a measure used by management, analysts and investors as an indicator of operating cash flow since it excludes the impact of movements in working capital items, non-cash charges and financing costs. Therefore, Adjusted EBITDA gives the investor information as to the cash generated from the operations of a business. However, Adjusted EBITDA is not a measure of financial performance under accounting principles GAAP, and should not be considered a substitute for other financial measures of performance. Adjusted EBITDA as calculated by NGS may not be comparable to Adjusted EBITDA as calculated and reported by other companies. The most comparable GAAP measure to Adjusted EBITDA is net income (loss).
The following tables reconciles our net income, the most directly comparable GAAP financial measure, to Adjusted EBITDA for the periods presented:
| Three months ended | |||||||||
| December 31, | March 31, | June 30, | September 30, | December 31, | |||||
| 2023 | 2024 | 2024 | 2024 | 2024 | |||||
| (in thousands) | |||||||||
| Net income | $ 1,702 | $ 5,098 | $ 4,250 | $ 5,014 | $ 2,865 | ||||
| Interest expense | 2,297 | 2,935 | 2,932 | 3,045 | 3,015 | ||||
| Income tax expense | 431 | 1,479 | 1,294 | 1,383 | 283 | ||||
| Depreciation and amortization | 7,160 | 7,087 | 7,705 | 8,086 | 8,469 | ||||
| Stock-based compensation expense | 228 | 274 | 242 | 522 | 783 | ||||
| Severance and restructuring charges | — | — | 33 | — | — | ||||
| Impairments | — | — | — | 136 | 705 | ||||
| Inventory allowance | 3,965 | — | — | — | 1,863 | ||||
| Retirement of rental equipment | 505 | 5 | — | — | 23 | ||||
| Adjusted EBITDA | $ 16,288 | $ 16,878 | $ 16,456 | $ 18,186 | $ 18,006 | ||||
| Year ended December 31, | ||||
| 2023 | 2024 | |||
| (in thousands) | ||||
| Net income | $ 4,747 | $ 17,227 | ||
| Interest expense | 4,082 | 11,927 | ||
| Income tax expense | 1,873 | 4,439 | ||
| Depreciation and amortization | 26,550 | 31,347 | ||
| Stock-based compensation expense | 2,054 | 1,821 | ||
| Severance and restructuring charges | 1,224 | 33 | ||
| Impairments | 779 | 841 | ||
| Inventory allowance | 3,965 | 1,863 | ||
| Retirement of rental equipment | 505 | 28 | ||
| Adjusted EBITDA | $ 45,779 | $ 69,526 | ||
Conference Call Details: The Company will host a conference call to review its fourth-quarter and year-end financial results on Tuesday, March 18 at 8:30 a.m. (EST), 7:30 a.m. (CST). To join the conference call, kindly access the Investor Relations section of our website at www.ngsgi.com or dial in at (800) 550-9745 and enter conference ID 167298 at least five minutes prior to the scheduled start time. Please note that using the provided dial-in number is necessary for participation in the Q&A section of the call. A recording of the conference will be made available on our Company's website following its conclusion. Thank you for your interest in our Company's updates.
About Natural Gas Services Group, Inc.
Natural Gas Services Group is a leading provider of natural gas compression equipment, technology and services to the energy industry. The Company designs, rents, sells and maintains natural gas compressors for oil and natural gas production and plant facilities, primarily using equipment from third-party fabricators and OEM suppliers along with limited in-house assembly. The Company is headquartered in Midland, Texas, with a fabrication facility located in Tulsa, Oklahoma, 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.
Forward-Looking Statements
Certain statements herein (and oral statements made regarding the subjects of this release) constitute “forward-looking statements” within the meaning of the federal securities laws. Words such as “may,” “might,” “should,” “believe,” “expect,” “anticipate,” “estimate,” “continue,” “predict,” “forecast,” “project,” “plan,” “intend” or similar expressions, or statements regarding intent, belief, or current expectations, are forward-looking statements. These forward-looking statements are based upon current estimates and assumptions.
These forward–looking statements rely on a number of assumptions concerning future events and are subject to a number of uncertainties and factors that could cause actual results to differ materially from such statements, many of which are outside the control of the Company. Forward–looking information includes, but is not limited to statements regarding: guidance or estimates related to EBITDA growth, projected capital expenditures; returns on invested capital, fundamentals of the compression industry and related oil and gas industry, valuations, compressor demand assumptions and overall industry outlook, and the ability of the Company to capitalize on any potential opportunities.
While the Company believes that the assumptions concerning future events are reasonable, investors are cautioned that there are inherent difficulties in predicting certain important factors that could impact the future performance or results of its business. Some of these factors that could cause results to differ materially from those indicated by such forward-looking statements include, but are not limited to:
- conditions in the oil and gas industry, including the supply and demand for oil and gas and volatility in the prices of oil and gas;
- our reliance on major customers;
- failure of projected organic growth due to adverse changes in the oil and gas industry, including depressed oil and gas prices, oppressive environmental regulations and competition;
- our inability to achieve increased utilization of assets, including rental fleet utilization and monetizing other non-cash balance sheet assets;
- failure of our customers to continue to rent equipment after expiration of the primary rental term;
- our ability to economically develop and deploy new technologies and services, including technology to comply with health and environmental laws and regulations;
- failure to achieve accretive financial results in connection with any acquisitions we may make;
- fluctuations in interest rates;
- regulation or prohibition of new well completion techniques;
- competition among the various providers of compression services and products;
- changes in safety, health and environmental regulations;
- changes in economic or political conditions in the markets in which we operate;
- the inherent risks associated with our operations, such as equipment defects, malfunctions, natural disasters and adverse changes in customer, employee and supplier relationships;
- our inability to comply with covenants in our debt agreements and the decreased financial flexibility associated with our debt;
- inability to finance our future capital requirements and availability of financing;
- capacity availability, costs and performance of our outsourced compressor fabrication providers and overall inflationary pressures;
- impacts of world events, such as acts of terrorism and significant economic disruptions and adverse consequences resulting from possible long-term effects of potential pandemics and other public health crises; and
- general economic conditions.
In addition, these forward-looking statements are subject to other various risks and uncertainties, including without limitation those set forth in the Company’s filings with the Securities and Exchange Commission, including the Company's Annual Report on Form 10-K for the year ended December 31, 2024. Thus, actual results could be materially different. The Company expressly disclaims any obligation to update or alter statements whether as a result of new information, future events or otherwise, except as required by law.
For More Information, Contact:
Anna Delgado, Investor Relations
(432) 262-2700
IR@ngsgi.com
www.ngsgi.com
| NATURAL GAS SERVICES GROUP, INC. CONSOLIDATED BALANCE SHEETS (in thousands) (unaudited) | |||
| December 31, | |||
| 2024 | 2023 | ||
| ASSETS | |||
| Current Assets: | |||
| Cash and cash equivalents | $ 2,142 | $ 2,746 | |
| Trade accounts receivable, net of provision for credit losses | 15,626 | 39,186 | |
| Inventory, net of allowance for obsolescence | 18,051 | 21,639 | |
| Federal income tax receivable | 11,282 | 11,538 | |
| Prepaid expenses and other | 1,075 | 1,162 | |
| Total current assets | 48,176 | 76,271 | |
| Long-term inventory, net of allowance for obsolescence | — | 701 | |
| Rental equipment, net of accumulated depreciation | 415,021 | 373,649 | |
| Property and equipment, net of accumulated depreciation | 22,989 | 20,550 | |
| Intangible assets, net of accumulated amortization | — | 775 | |
| Other assets | 6,342 | 6,783 | |
| Total assets | $ 492,528 | $ 478,729 | |
| LIABILITIES AND STOCKHOLDERS’ EQUITY | |||
| Current Liabilities: | |||
| Accounts payable | $ 9,670 | $ 17,628 | |
| Accrued liabilities | 7,688 | 15,085 | |
| Total current liabilities | 17,358 | 32,713 | |
| Credit facility | 170,000 | 164,000 | |
| Deferred income taxes | 45,873 | 41,636 | |
| Other long-term liabilities | 4,240 | 4,486 | |
| Total liabilities | 237,471 | 242,835 | |
| Commitments and contingencies | |||
| Stockholders’ Equity: | |||
| Preferred stock, 5,000 shares authorized, no shares issued or outstanding | — | — | |
| Common stock, 30,000 shares authorized, par value | 138 | 137 | |
| Additional paid-in capital | 118,415 | 116,480 | |
| Retained earnings | 151,508 | 134,281 | |
| Treasury shares, at cost, 1,310 shares for each of December 31, 2024 and 2023, respectively | (15,004) | (15,004) | |
| Total stockholders’ equity | 255,057 | 235,894 | |
| Total liabilities and stockholders’ equity | $ 492,528 | $ 478,729 | |
| NATURAL GAS SERVICES GROUP, INC. CONSOLIDATED STATEMENTS OF OPERATIONS (in thousands, except per share amounts) (unaudited) | |||||||
| Three months ended | Year ended | ||||||
| December 31, | December 31, | ||||||
| 2024 | 2023 | 2024 | 2023 | ||||
| Revenue: | |||||||
| Rental | $ 38,226 | $ 31,626 | $ 144,236 | $ 106,159 | |||
| Sales | 997 | 2,921 | 7,613 | 8,921 | |||
| Aftermarket services | 1,435 | 1,674 | 4,893 | 6,087 | |||
| Total revenue | 40,658 | 36,221 | 156,742 | 121,167 | |||
| Cost of revenues (excluding depreciation and amortization) | |||||||
| Rental | 15,119 | 12,427 | 7,903 | 8,919 | |||
| Sales | 1,446 | 2,301 | 56,903 | 48,877 | |||
| Aftermarket services | 1,114 | 1,234 | 3,950 | 4,658 | |||
| Total cost of revenues (excluding depreciation and amortization) | 17,679 | 15,962 | 68,756 | 62,454 | |||
| Selling, general and administrative expenses | 5,831 | 4,390 | 21,012 | 16,938 | |||
| Depreciation and amortization | 8,469 | 7,160 | 31,347 | 26,550 | |||
| Impairments | 705 | — | 841 | 779 | |||
| Inventory allowance | 1,863 | 3,965 | 1,863 | 3,965 | |||
| Retirement of rental equipment | 23 | 505 | 28 | 505 | |||
| Loss (gain) on sale of property and equipment, net | 45 | (200) | (430) | (481) | |||
| Total operating costs and expenses | 34,615 | 31,782 | 123,417 | 110,710 | |||
| Operating income | 6,043 | 4,439 | 33,325 | 10,457 | |||
| Other income (expense): | |||||||
| Interest expense | (3,015) | (2,297) | (11,927) | (4,082) | |||
| Other income (expense) | 120 | (9) | 268 | 245 | |||
| Total other expense, net | (2,895) | (2,306) | (11,659) | (3,837) | |||
| Income before income taxes | 3,148 | 2,133 | 21,666 | 6,620 | |||
| Provision for income taxes | (283) | (431) | (4,439) | (1,873) | |||
| Net income | $ 2,865 | $ 1,702 | $ 17,227 | $ 4,747 | |||
| Earnings per share: | |||||||
| Basic | $ 0.23 | $ 0.14 | $ 1.39 | $ 0.39 | |||
| Diluted | $ 0.23 | $ 0.14 | $ 1.37 | $ 0.38 | |||
| Weighted average shares outstanding: | |||||||
| Basic | 12,438 | 12,378 | 12,412 | 12,316 | |||
| Diluted | 12,586 | 12,435 | 12,543 | 12,383 | |||
| NATURAL GAS SERVICES GROUP, INC. CONSOLIDATED STATEMENTS OF CASH FLOWS (in thousands, except per share amounts) (unaudited) | |||||||
| Three months ended | Year ended | ||||||
| December 31, | December 31, | ||||||
| 2024 | 2023 | 2024 | 2023 | ||||
| CASH FLOWS FROM OPERATING ACTIVITIES: | |||||||
| Net income | $ 2,865 | $ 1,702 | $ 17,227 | $ 4,747 | |||
| Adjustments to reconcile net income to net cash provided by operating activities: | |||||||
| Depreciation and amortization | 8,469 | 7,160 | 31,347 | 26,550 | |||
| Impairments | 705 | — | 841 | 779 | |||
| Inventory allowance | 1,863 | 3,965 | 1,863 | 3,965 | |||
| Retirement of rental equipment | 23 | 505 | 28 | 505 | |||
| (Gain) loss on sale of property and equipment | 45 | (200) | (430) | (481) | |||
| Amortization of debt issuance costs | 216 | 138 | 746 | 425 | |||
| Deferred income taxes | 182 | 430 | 4,237 | 1,838 | |||
| Stock-based compensation | 783 | 228 | 1,821 | 2,054 | |||
| Provision for credit losses | — | 293 | 433 | 492 | |||
| (Gain) loss on company owned life insurance | (4) | 186 | (156) | 235 | |||
| Changes in operating assets and liabilities: | |||||||
| Trade accounts receivables | 9,183 | (11,438) | 23,127 | (25,010) | |||
| Inventory | 1,355 | 1,939 | 2,477 | (669) | |||
| Prepaid expenses and prepaid income taxes | 1,177 | 274 | 152 | (7) | |||
| Accounts payable and accrued liabilities | (18,580) | (12,478) | (17,727) | 2,436 | |||
| Other | 1,144 | (369) | 477 | 174 | |||
| NET CASH PROVIDED BY (USED IN) OPERATING ACTIVITIES | 9,426 | (7,665) | 66,463 | 18,033 | |||
| CASH FLOWS FROM INVESTING ACTIVITIES: | |||||||
| Purchase of rental equipment, property and other equipment | (14,544) | (25,380) | (71,894) | (153,943) | |||
| Purchase of company owned life insurance | (187) | (44) | (22) | (422) | |||
| Proceeds from sale of property and equipment | (28) | 246 | 476 | 477 | |||
| NET CASH USED IN INVESTING ACTIVITIES | (14,759) | (25,178) | (71,440) | (153,888) | |||
| CASH FLOWS FROM FINANCING ACTIVITIES: | |||||||
| Proceeds from credit facility borrowings | 20,000 | 36,000 | 28,000 | 139,000 | |||
| Repayments of credit facility borrowings | (13,000) | — | (22,000) | — | |||
| Payments of other long term liabilities | (158) | (45) | (780) | (95) | |||
| Payments of debt issuance costs | — | (562) | (962) | (2,693) | |||
| Proceeds from exercise of stock options | 223 | — | 293 | — | |||
| Taxes paid related to net share settlement of equity awards | — | (1) | (178) | (983) | |||
| NET CASH PROVIDED BY FINANCING ACTIVITIES | 7,065 | 35,392 | 4,373 | 135,229 | |||
| NET CHANGE IN CASH AND CASH EQUIVALENTS | 1,732 | 2,549 | (604) | (626) | |||
| CASH AND CASH EQUIVALENTS AT BEGINNING OF PERIOD | 410 | 197 | 2,746 | 3,372 | |||
| CASH AND CASH EQUIVALENTS AT END OF PERIOD | $ 2,142 | $ 2,746 | $ 2,142 | $ 2,746 | |||
Investor Relations IR@ngsgi.com 432-262-2700
FAQ
What was NGS's rental revenue growth in Q4 2024?
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