olivLaw · US equity research
Natural Gas Services Group, Inc. NGS
Oil & Gas Field Services, NEC · SIC 1389 · Vertical: Oil & Gas Field Services, NEC (SIC 1389)
Natural Gas Services Group rents, designs, installs, services and maintains natural gas and electric compressors for oil and gas production, with a strong focus on the Permian Basin. The company expanded its fleet in 2026 through the Flatrock acquisition, which could change its revenue mix and customer base that the filings describe as concentrated.
At the close of 05 Nov 2026, Natural Gas Services Group, Inc. (NGS) stock was 26.68 USD (−7.84% on the day), with market capitalisation 344.1 m USD, P/E 16.6 on diluted EPS of 1.61 USD over the last 12 months, dividend yield 1.76%, beta 1.13, 52-week range 26.68–44.13 USD. Latest reported quarter (Q2 2026): revenue of 51.4 m USD (+24.2% YoY), net income of 3.8 m USD (−26.2% YoY), diluted EPS 0.30 USD.
Data as of · AI analysis dated · Source: SEC filings and closing prices, computed by olivLaw.
Price history
Loading chart…
Technical reading
- RSI (14)
- 27.2
- oversold (≤ 30)
- Bollinger (20, 2)
- 28.32 – 34.42
- below the lower band · %B -0.27 · band width 19.4%
- SMA 50 / 200
- 33.37 / 37.40
- downtrend (price < SMA50 < SMA200)
- MACD (12, 26, 9)
- -1.03 / -0.74
- MACD below signal
Indicators describe past prices; on their own they do not predict direction. On our history the RSI ≤ 40 filter added no return (see the signals methodology).
Performance
| Company | S&P 500 | vs S&P 500 | Vertical median | |
|---|---|---|---|---|
| 1 month | −21.7% | −1.1% | −20.6 pp | — |
| 3 months | −26.7% | −0.5% | −26.3 pp | — |
| 6 months | −32.6% | +4.4% | −37.0 pp | — |
| Year to date | −20.7% | +12.3% | −33.0 pp | — |
| 1 year | −5.3% | +13.5% | −18.8 pp | −6.3% |
| 3 years | +86.8% | +76.4% | +10.4 pp | −34.0% |
| 5 years | +114.5% | +63.7% | +50.8 pp | — |
Price returns, dividends excluded.
Quarterly results
Latest quarter: Q2 2026 · 30 Jun 2026
Quarterly margins
Quarterly statements · USD
| Fiscal year | Q3 '24 | Q4 '24 | Q1 '25 | Q2 '25 | Q3 '25 | Q4 '25 | Q1 '26 | Q2 '26 |
|---|---|---|---|---|---|---|---|---|
| Revenue | 40.7 m | 40.7 m | 41.4 m | 41.4 m | 43.4 m | 46.1 m | 48.5 m | 51.4 m |
| Cost of revenue | 17.8 m | 17.7 m | 17.1 m | 17.2 m | 17.6 m | 19.9 m | 18.2 m | 20.6 m |
| SG&A | 5.5 m | 5.8 m | 5.4 m | 5.5 m | 5.9 m | 5.7 m | 6.5 m | 9.9 m |
| Operating income | 9.5 m | 6.0 m | 9.5 m | 9.9 m | 10.8 m | 7.1 m | 13.1 m | 9.9 m |
| Depreciation & amortisation | 8.1 m | 8.5 m | 8.6 m | 9.0 m | 9.2 m | 9.8 m | 10.3 m | 11.0 m |
| Interest expense | 3.0 m | 3.0 m | 3.2 m | 3.2 m | 3.4 m | 3.7 m | 4.0 m | 4.4 m |
| Pre-tax income | 6.4 m | 3.1 m | 6.3 m | 6.8 m | 7.6 m | 5.8 m | 8.9 m | 5.5 m |
| Income tax | 1.4 m | 283.0 k | 1.5 m | 1.6 m | 1.8 m | 1.7 m | 2.2 m | 1.7 m |
| Net income | 5.0 m | 2.9 m | 4.9 m | 5.2 m | 5.8 m | 4.1 m | 6.8 m | 3.8 m |
| Diluted EPS | 0.40 | 0.23 ≈ | 0.38 | 0.41 | 0.46 | 0.32 ≈ | 0.53 | 0.30 |
| Operating cash flow | 25.9 m ≈ | 9.4 m | 21.3 m | 11.0 m ≈ | 16.8 m ≈ | 13.9 m | 23.0 m | 25.4 m ≈ |
| Capex | 29.1 m ≈ | 14.5 m | 19.3 m | 25.8 m ≈ | 41.9 m ≈ | 34.6 m | 15.2 m | 18.8 m ≈ |
| Dividends paid | — | 0 | 0 | 0 ≈ | 1.3 m ≈ | 1.4 m | 1.4 m | 1.9 m |
≈ derived quarter (cumulative difference / share-days average)
E/P over time
E/P = trailing-12-month diluted EPS / price at quarter end. E/P is the inverse of P/E and stays defined when earnings are negative.
Today's P/E sits at the 23 percentile of its own 22-quarter history (min 14.7, median 21.7, max 157.8; quarters with earnings only).
Fiscal years
| Fiscal year | 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|---|---|---|---|
| Revenue | 65.5 m | 78.4 m | 68.1 m | 72.4 m | 84.8 m | 121.2 m | 156.7 m | 172.3 m |
| Revenue YoY | −3.3% | +19.8% | −13.2% | +6.4% | +17.1% | +42.8% | +29.4% | +9.9% |
| Net income | -466.0 k | -13.9 m | 1.8 m | -9.2 m | -569.0 k | 4.7 m | 17.2 m | 19.9 m |
| Net income YoY | −102.4% | unavailable | unavailable | −607.9% | unavailable | unavailable | +262.9% | +15.7% |
| Diluted EPS | -0.04 | -1.06 | 0.14 | -0.70 | -0.05 | 0.38 | 1.37 | 1.57 |
| Diluted EPS YoY | −102.6% | unavailable | unavailable | −600.0% | unavailable | unavailable | +260.5% | +14.6% |
| net % | -0.7% | -17.7% | 2.7% | -12.7% | -0.7% | 3.9% | 11.0% | 11.6% |
| Free cash flow | -16.4 m | -40.5 m | 17.4 m | 2.8 m | -37.4 m | -135.9 m | -5.4 m | -58.6 m |
Reported results vs expectations
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Balance sheet & financial health
Fiscal year 2025 · 31 Dec 2025
- Cash
- 0 USD
- Financial debt
- unavailable USD
- Net debt
- unavailable USD
- Equity
- 274.7 m USD
- Total assets
- 586.8 m USD
- Debt / equity
- unavailable
- Current ratio
- 2.33x
- ROE
- 7.5%
- ROA
- 3.7%
- FCF margin
- -34.0%
Financial statements (source on every figure)
Revenue and net income (USD)
Margins
Income statement · USD
| Line | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 | Source (latest year) |
|---|---|---|---|---|---|---|---|
| Revenue | 68.1 m | 72.4 m | 84.8 m | 121.2 m | 156.7 m | 172.3 m | SEC (XBRL)· 16 Mar 2026verified |
| Cost of revenue | — | — | 46.4 m | 62.5 m | 68.8 m | 71.8 m | SEC (XBRL)· 16 Mar 2026verified |
| Gross profit | — | — | 38.5 m ≈ | 58.7 m ≈ | 88.0 m ≈ | 100.5 m ≈ | SEC (XBRL)· 16 Mar 2026derived |
| SG&A | 10.6 m | 10.8 m | 13.9 m | 16.9 m | 21.0 m | 22.4 m | SEC (XBRL)· 16 Mar 2026verified |
| Operating income | -3.6 m | -12.4 m | 431.0 k | 10.5 m | 33.3 m | 37.3 m | SEC (XBRL)· 16 Mar 2026verified |
| Depreciation & amortisation | 25.2 m | 25.4 m | 24.1 m | 26.6 m | 31.3 m | 36.7 m | SEC (XBRL)· 16 Mar 2026verified |
| EBITDA | 21.6 m ≈ | 13.0 m ≈ | 24.5 m ≈ | 37.0 m ≈ | 64.7 m ≈ | 74.0 m ≈ | SEC (XBRL)· 16 Mar 2026derived |
| Interest expense | 14.0 k | 65.0 k | 364.0 k | 4.1 m | 11.9 m | 13.6 m | SEC (XBRL)· 16 Mar 2026verified |
| Pre-tax income | -3.0 m | -11.8 m | -41.0 k | 6.6 m | 21.7 m | 26.5 m | SEC (XBRL)· 16 Mar 2026verified |
| Income tax | -4.8 m | -2.6 m | 528.0 k | 1.9 m | 4.4 m | 6.6 m | SEC (XBRL)· 16 Mar 2026verified |
| Net income | 1.8 m | -9.2 m | -569.0 k | 4.7 m | 17.2 m | 19.9 m | SEC (XBRL)· 16 Mar 2026verified |
| Diluted EPS | 0.14 | -0.70 | -0.05 | 0.38 | 1.37 | 1.57 | SEC (XBRL)· 16 Mar 2026verified |
| Weighted average diluted shares | 13.3 m | 13.1 m | 12.3 m | 12.4 m | 12.6 m | 12.7 m | SEC (XBRL)· 16 Mar 2026verified |
≈ computed by olivLaw from the reported lines of the same year: Revenue − Cost of revenue; Operating income + Depreciation & amortisation.
Balance sheet · USD
| Line | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 | Source (latest year) |
|---|---|---|---|---|---|---|---|
| Cash | 28.9 m | 22.9 m | 3.4 m | 2.7 m | 2.1 m | 0 | SEC (XBRL)· 16 Mar 2026verified |
| Receivables | 11.9 m | 10.4 m | 14.7 m | 39.2 m | 15.6 m | 18.5 m | SEC (XBRL)· 16 Mar 2026verified |
| Inventories | 19.9 m | 19.3 m | 23.4 m | 21.6 m | 18.1 m | 20.6 m | SEC (XBRL)· 16 Mar 2026verified |
| Current assets | 72.7 m | 65.1 m | 54.1 m | 76.3 m | 48.2 m | 57.1 m | SEC (XBRL)· 16 Mar 2026verified |
| Property, plant & equipment, net | 21.7 m | 20.8 m | 22.2 m | 20.6 m | 23.0 m | 20.5 m | SEC (XBRL)· 16 Mar 2026verified |
| Goodwill | — | — | — | — | — | 0 | SEC (XBRL)· 10 Aug 2026verified |
| Intangibles (excl. goodwill) | 1.2 m | 1.0 m | 900.0 k | 775.0 k | 0 | 0 | SEC (XBRL)· 10 Aug 2026verified |
| Total assets | 306.8 m | 298.5 m | 328.2 m | 478.7 m | 492.5 m | 586.8 m | SEC (XBRL)· 16 Mar 2026verified |
| Accounts payable | 2.4 m | 4.8 m | 6.5 m | 17.6 m | 9.7 m | 14.0 m | SEC (XBRL)· 16 Mar 2026verified |
| Long-term debt | — | — | 25.0 m | 164.0 m | — | — | SEC (XBRL)· 15 May 2024verified |
| Current liabilities | 10.9 m | 20.3 m | 30.4 m | 32.7 m | 17.4 m | 24.5 m | SEC (XBRL)· 16 Mar 2026verified |
| Total liabilities | 55.3 m | 62.6 m | 98.2 m | 242.8 m | 237.5 m | 312.1 m | SEC (XBRL)· 16 Mar 2026verified |
| Equity | 251.5 m † | 235.9 m † | 230.1 m † | 235.9 m † | 255.1 m † | 274.7 m † | SEC (XBRL)· 16 Mar 2026verified |
† equity attributable to the parent's shareholders: in these years the issuer no longer reports the total including non-controlling interests.
Cash flow · USD
| Line | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 | Source (latest year) |
|---|---|---|---|---|---|---|---|
| Operating cash flow | 32.6 m | 28.5 m | 27.8 m | 18.0 m | 66.5 m | 62.9 m | SEC (XBRL)· 16 Mar 2026verified |
| Capex | 15.3 m | 25.7 m | 65.1 m | 153.9 m | 71.9 m | 121.5 m | SEC (XBRL)· 16 Mar 2026verified |
| Free cash flow | 17.4 m ≈ | 2.8 m ≈ | -37.4 m ≈ | -135.9 m ≈ | -5.4 m ≈ | -58.6 m ≈ | SEC (XBRL)· 16 Mar 2026derived |
| Investing cash flow | -15.2 m | -25.7 m | -65.1 m | -153.9 m | -71.4 m | -121.3 m | SEC (XBRL)· 16 Mar 2026verified |
| Financing cash flow | -157.0 k | -8.8 m | 17.7 m | 135.2 m | 4.4 m | 56.2 m | SEC (XBRL)· 16 Mar 2026verified |
| Dividends paid | — | — | — | 0 | 0 | 2.6 m | SEC (XBRL)· 16 Mar 2026verified |
| Share repurchases | 0 | 7.9 m | 6.7 m | 0 | 0 | — | SEC (XBRL)· 17 Mar 2025verified |
≈ computed by olivLaw from the reported lines of the same year: Operating cash flow − Capex.
Computed indicators
Growth
Profitability
Returns
Balance sheet
Liquidity
Cash
Efficiency
Market and valuation
Risk
Valuation
olivLaw classification
- score weight coverage: 56.2% of at least 60%
A scoring methodology on indicators and valuation, not investment advice.
Closing price
05 Nov 2026Source: olivLaw, closing series
Market cap: 344.1 m USD
Key indicators
Coverage and freshness
Score by group
56% · Insufficient data
Estimated value range
The combined range = the median of the valid methods' low, central and high values; it is not a probability interval and does not cover every result. Envelope of all methods: 22.23 – 33.42 USD.
Valuation assumptions are editorial choices, not measured; beta is not measured.
Method ranges (USD per share)
— — Mid · ▏ Price
Valuation methods
- DCF (discounted cash flow)unavailable · net debt missing: EV cannot be bridged to equity (missing debt is not zero)
- Peers: EV/EBITDAunavailable · net debt missing: EV cannot be bridged to equity (missing debt is not zero)
- Peers: P/E22.23 – 33.42 (Mid 32.36)9 companies used · median multiple 20.1x · quartiles 13.8x – 20.7xCLB, HAL, HOS, NESR, OII, RNGR, SLB, TUSK, WTTR
- Dividend discount (DDM)unavailable · input data missing
Classification (SIC) comparables group by industry code, not by economic activity; the direct group is an editorial selection by activity. Members' multiples are on their own trailing twelve months, at their own latest close.
Assumptions (illustrative, editorial)
- Risk-free rate
- 4.3%
- Equity risk premium
- 5.0%
- Beta (default)
- 1.00
- Cost of equity
- 9.3%
- Terminal growth
- 2.5%
Factor scorecard
Insufficient data
Minimum-evidence gate: score weight coverage: 56.2% of at least 60%
| Factor | Value | Score | Weight used |
|---|---|---|---|
| ROIC · Quality | unavailable | unavailable | — |
| Net margin · Quality | 10.8% | 89 (vs peers) | 11% |
| FCF conversion · Quality | -153.0% | 0 (on a fixed band) | 11% |
| Revenue CAGR 3Y · Growth | 26.6% | 100 (on a fixed band) | 15% |
| EPS CAGR 3Y · Growth | unavailable | unavailable | — |
| Net debt / EBITDA · Balance sheet | unavailable | unavailable | — |
| Interest coverage · Balance sheet | 2.6x | 17 (on a fixed band) | 11% |
| Current ratio · Balance sheet | 2.0x | 100 (on a fixed band) | 7% |
| P/E (TTM) · Valuation | 16.6x | 73 (vs peers) | 19% |
| EV/EBITDA · Valuation | unavailable | unavailable | — |
| FCF yield · Valuation | -9.1% | 0 (on a fixed band) | 15% |
| Shareholder yield (distributions) · Returns | 1.7% | 25 (on a fixed band) | 11% |
| Payout ratio (FCF) · Returns | unavailable | unavailable | — |
Factors without a value were dropped; the remaining weights were renormalised.
Score groups
- Balance sheet50/100 · 2/3 factors with a value
- Growth· partial100/100 · 1/2 factors with a value
- Quality44/100 · 2/3 factors with a value
- Returns· partial25/100 · 1/2 factors with a value
- Valuation40/100 · 2/3 factors with a value
A «partial» group is computed from under half of its weight or from one factor: it is not a full assessment of the group.
Memo
NATURAL GAS SERVICES GROUP, INC. (NGS). Latest full fiscal year: 2025; data up to 2026-06-30.
Figures computed from the financial statements: revenue 172.3 m USD in 2025; YoY growth 9.9%; net margin 10.8%; ROE 7.3%.
The estimated value range is 22.23–33.42 USD per share (median of 1 methods, agreement: single method); assumptions are illustrative. Against the central value of 32.36 USD, the price of 26.68 USD leaves a potential of 21.3% (value / price − 1) and a margin of safety of 17.6% (1 − price / value). The range is the median of the methods' low, central and high values, not a probability interval.
Insufficient data for a verdict (score weight coverage: 56.2% of at least 60%).
Text generated deterministically from the figures shown; no language model. Not investment advice.
What supports the thesis
- Net margin: 10.8%
- Revenue CAGR 3Y: 26.6%
- Current ratio: 2.0x
- P/E (TTM): 16.6x
What contradicts it
- FCF conversion: -153.0%
- Interest coverage: 2.6x
- FCF yield: -9.1%
- Shareholder yield (distributions): 1.7%
Not assessed (insufficient data or a ratio without meaning): ROIC, EPS CAGR 3Y, Net debt / EBITDA, EV/EBITDA, Payout ratio (FCF).
Versus the vertical median
Oil & Gas Field Services, NEC (SIC 1389) · same industry (4-digit SIC) · compared with 18 companies
Multiples and returns vs the median
Price rebased to 100 (monthly, 5 years)
Companies in the vertical
| Market cap | P/E | ROE | Net margin | Revenue YoY | 1A / 3A | |
|---|---|---|---|---|---|---|
| SLBSlb Limited | 76.1 bn | 25.1 | 12.0% | 8.4% | −1.6% | +42% / −1% |
| HALHalliburton Company | 27.3 bn | 13.8 | 18.8% | 8.9% | −3.3% | +26% / −11% |
| OIIOceaneering International Inc | 3.4 bn | 10.3 | 31.1% | 11.4% | +4.6% | +39% / +65% |
| NESRNational Energy Services Reunited Corp. | 1.9 bn | 20.7 | 9.4% | 5.8% | +1.7% | +38% / unavailable |
| RESRpc, Inc. | 1.2 bn | — | -3.0% | -1.8% | +15.0% | +5% / −23% |
| HOSHornbeck Offshore Services, Inc. | 790.0 m | 20.1 | 2.5% | 3.0% | −4.9% | −20% / −42% |
| PUMPProPetro Holding Corp. | 738.4 m | — | 0.2% | 0.2% | −12.1% | −37% / −34% |
| WTTRSelect Water Solutions, Inc. | 622.7 m | 19.5 | 3.5% | 2.2% | −3.1% | +53% / +107% |
| ACDCProFrac Holding Corp. | 493.6 m | — | -57.4% | -22.8% | −11.4% | −23% / −66% |
| CLBCore Laboratories Inc. | 409.2 m | 26.5 | 5.7% | 3.0% | +0.5% | −41% / −50% |
| NGSNatural Gas Services Group, Inc. | 344.1 m | 16.6 | 7.3% | 10.8% | +9.9% | −5% / +87% |
| TUSKMammoth Energy Services, Inc. | 143.4 m | 10.1 | 5.3% | 17.1% | −2.9% | +62% / −33% |
| NINENine Energy Service, Inc. | 94.7 m | — | -214.6% | -9.1% | +1.4% | unavailable / unavailable |
| KLXEKLX Energy Services Holdings, Inc. | 20.4 m | — | — | -9.7% | −10.2% | −42% / −90% |
| RCONRecon Technology, Ltd | 8.7 m | — | -5.9% | -27.0% | +75.0% | −100% / −100% |
| LBRTLiberty Energy Inc. | — | 46.8 | 2.0% | 0.9% | −7.2% | −36% / −43% |
| WBIWaterBridge Infrastructure LLC | — | 399.2 | 0.5% | 0.5% | +66.2% | +5% / unavailable |
| NOANorth American Construction Group Ltd. | — | — | 8.0% | 2.6% | +10.2% | −34% / −54% |
| RNGRRanger Energy Services, Inc. | — | 20.1 | 5.1% | 2.6% | −4.2% | −6% / +30% |
1- and 3-year price returns: for NGS from daily closes (the same as the performance table), for the other companies from month-end closes.
olivLaw engine forecast
The world engine ran after the company's latest material disclosure. Probabilities are of TOUCHING a level within the horizon (not closing there) and sit next to the random walk (p_rw), the no-information benchmark.
The engine has no published run for this company yet.
Valuation scenarios (editable assumptions)
Illustrative scenarios
Illustrative: not forecasts and without probabilities. Each case is one coherent set of assumptions, computed on today's figures.
Estimated price (USD)
| Estimated price | Bear | Base | Bull |
|---|---|---|---|
| 1 years | 17.17 Total return -34% · Per year -34% | 30.22 Total return 15% · Per year 15% | 45.33 Total return 72% · Per year 72% |
| 3 years | 20.37 Total return -19% · Per year -7% | 39.97 Total return 57% · Per year 16% | 65.28 Total return 153% · Per year 36% |
| 5 years | 24.16 Total return -0% · Per year -0% | 52.86 Total return 112% · Per year 16% | 94.00 Total return 270% · Per year 30% |
- Exit P/E± 9.99
- Net margin± 6.99
- Annual revenue growth± 5.22
- Annual dilution± 0.59
AI analysis
AI-generatedAI-generated analysis (Claude) from cited public sources; it may contain errors. Not investment advice. As of 27 Oct 2026 · Model: claude-haiku-5-5.
In brief
Natural Gas Services Group rents, designs, installs, services and maintains natural gas and electric compressors for oil and gas production, with a strong focus on the Permian Basin. The company expanded its fleet in 2026 through the Flatrock acquisition, which could change its revenue mix and customer base that the filings describe as concentrated.
SWOT
Strengths
- The company has a large and growing fleet with high utilization and operational reliability it presents as a differentiator for customers.
- The balance sheet is relatively modestly leveraged and the credit facility has been expanded, giving flexibility for acquisitions and fleet investment.
- Long customer relationships and proprietary emissions-reduction technology support pricing and contract renewals.
Weaknesses
- Geographic concentration in the Permian Basin and customer concentration make the company sensitive to decisions by a few large operators.
- Rental contracts are often short-term or month-to-month, which leaves revenue exposed to rapid changes in demand.
- Sales and aftermarket lines carry low margins, and some real estate and inventory remain to be monetized.
Opportunities
- Demand for large and electric motor drive units could grow, and the company already has an advantage in that segment.
- Integrating the Flatrock acquisition and streamlining inventory could generate cost savings and additional revenue.
- Monetizing idle properties and non-cash assets could free capital for reinvestment in the fleet.
Threats
- A prolonged decline in oil prices could reduce production activity and pressure rental rates.
- Hydraulic fracturing and emissions rules could reduce customer demand for compressors.
- Competition from large providers and customers' own fleets could affect market share and pricing.
Risks
- Dependence on oil and gas priceshigh
Revenue depends on customer production and drilling budgets, which react quickly to oil and gas prices. A prolonged decline could reduce rates and fleet utilization.
- Customer concentrationhigh
Two principal customers generate most revenue and receivables. Losing either could have a significant adverse effect on results.
- Integration of the Flatrock acquisitionmedium
The acquisition adds assets and debt, and integrating people, systems and operations could bring unexpected costs or delays in realizing synergies.
- Environmental and fracturing regulationmedium
Restrictions on hydraulic fracturing or emissions could reduce customer activity and require compliance spending by the company.
- Cost inflationmedium
Rising labor, parts and component costs might not be fully passed on through rental rates, pressuring margins.
Investment thesis
What would need to be true (bull case)
- If demand for large horsepower compression stays high and rates hold, rapid organic growth and record fleet utilization could continue to support revenue and margins.
- The Flatrock acquisition could significantly expand the company's scale and capabilities, and successful integration could unlock cost and revenue synergies.
- Capital efficiency gains from faster collections and asset monetization could generate cash for further investment without diluting shareholders.
What would break the thesis
- Dependence on oil prices and industry cyclicality could lead to sudden drops in demand and rates, especially for short-term contracts.
- Customer concentration means a strategic change at one large operator could seriously affect the company's revenue.
- Rapid fleet growth and acquisition could strain debt and execution if integration or utilization falls short of expectations.
What to watch
- Integration results of Flatrock and fleet utilization trendsQ3 2026
- Trends in rental rates for large horsepower unitsQ4 2026
- Customer concentration and contracts with Oxy and Devonnext 10-K
- Effect of oil prices and regulation on compression demand2027
Products, market & competition
AI-generatedAI-generated analysis (Claude) from cited public sources; it may contain errors. Not investment advice. As of 27 Oct 2026 · Model: claude-haiku-5-5.
The business
Natural Gas Services Group, Inc. (NGS) is a provider of natural gas compression equipment and services, headquartered in Southlake, Texas. Its primary revenue comes from renting natural gas engine and electric motor drive compressors, focused on gas lift applications in unconventional oil wells. The company also sells components and provides aftermarket services, though these carry much lower margins than rental.
The stated strategy rests on four pillars: optimizing the existing fleet, improving asset utilization, expanding the rental fleet through pre-contracted agreements, and accretive acquisitions. In 2026 the Flatrock acquisition added a significant rented fleet, and the company redomesticated from Colorado to Texas, reflecting a consolidation of operations 2.
Segments
Sales and aftermarket services
Component sales from designed and engineered parts, plus aftermarket services such as overhauls of engines and compressors and commissioning of new units, make up a smaller share of activity. Their margins are substantially lower than rental, which limits their contribution to total results 1.
Market context
The compression market depends on oil and gas production levels and prices and is cyclical by nature. Demand for NGS compressors tracks production activity more than drilling, and unconventional oil shale plays in the Permian have become increasingly important to the company 1. Management notes that geopolitics and shifts in LNG exports add short-term volatility.
A key market feature is customer concentration: in 2025 two customers, Oxy and Devon, accounted for 59 percent of revenue 1. If demand from these customers shifts, the effect on revenue could be significant, and the U.S. compression market remains competitive, with large industry players holding greater financial resources 1.
Competitive position
The compression market is highly competitive, with several rivals, some with greater financial resources and broader geographic reach. The company says it competes on unit availability, customer service, flexibility, reliability and price, and differentiates through its emissions-reduction technology 1.
Large industry players may gain from scale advantages and a lower cost of capital, which could let them win market share. NGS aims to grow organically faster than its peers, particularly in large horsepower, where contracts run for longer terms 2.
- Publicly traded pure-play compression companies
The filing refers to four publicly traded pure-play compression companies without naming them; their organic growth is compared with that of NGS.
- Large oilfield equipment and service providers
Larger companies with greater name recognition, financial resources and international diversification are cited as main competitors in the report.
- Customers' own compression fleets
Customers may choose to buy and operate their own compression fleets instead of renting, which is a competitive alternative.
- New market entrants
Existing competitors or new entrants may introduce products with better prices, features or performance.
Links, dependencies and risks
Who the company is tied to, from its own SEC filings (customers, suppliers, production, partners, competitors, countries, regulation), from the 5 %+ holders' statements (13D/13G) and from what other companies say about it. Click a node for its evidence; on a listed company the graph moves to it.
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News & filings
In the press
No news in our archive over the last 180 days.
SEC filings
- Current report12 Aug 2026Results of operations · Regulation FD disclosure · Financial statements and exhibits
- Current report (amendment)10 Aug 2026Financial statements and exhibits
- Current report10 Aug 2026Results of operations · Other events · Financial statements and exhibits
- Quarterly report10 Aug 2026
- Current report24 Jul 2026Material agreement · Item 3.03 · Amendments to articles or bylaws · Other events · Financial statements and exhibits
- Current report10 Jul 2026Item 4.01
- Current report08 Jul 2026Regulation FD disclosure
- Current report17 Jun 2026Regulation FD disclosure · Financial statements and exhibits
- Current report15 Jun 2026Material agreement · Acquisition or disposition of assets · Creation of a direct financial obligation · Item 3.02 · Regulation FD disclosure · Financial statements and exhibits
- Current report11 Jun 2026Material agreement · Shareholder vote · Financial statements and exhibits
Sources
- [1] Form 10-K, fiscal year ended 2025-12-31 · SEC / Natural Gas Services Group, Inc. · 16 Mar 2026
- [2] Form 10-Q, quarter ended 2026-06-30 · SEC / Natural Gas Services Group, Inc. · 10 Aug 2026
- [3] Form 8-K, results release (exhibit 99.1) · SEC / Natural Gas Services Group, Inc. · 12 Aug 2026
Figures computed by olivLaw from SEC filings and closing prices; the qualitative analysis is AI-generated from cited sources. Not investment advice.