2020 Presentation Natural Gas Services Group, Inc.
CORPORATE OVERVIEW Headquartered in Midland, TX Employee Headcount: 195 Current Fleet: 2,335 compressors Founded in 1998/IPO in 2002 Listed on NYSE in 2008 1 of only 2 C-Corp. structures among public peers Only rental company…
CORPORATE OVERVIEW NGS focuses primarily on non-conventional natural gas and oil production business in the United States (such as coal bed methane, gas shale, tight gas and oil shales). According to data from the Energy Information…
KEY STRATEGIC INITIATIVES Strategic Move Into High Horsepower Market Significant opportunity to penetrate market demand for high horsepower compression Pre-contracted customer commitments Long-term, premium rental rates 93%+…
NGS STRATEGIC FOCUS Focus On Unconventional Compression Intensive Natural Gas and Oil Production Low risk, land-based production Movement into larger horsepower (400HP+) Introduction of New Gas offerings Compression Products…
OVERVIEW OF COMPRESSION BUSINESS Overview Natural gas compressors are used in a number of applications for the production and transportation of natural gas at the wellhead and through gathering and transmission lines. Compression…
MANUFACTURING AND FABRICATION CAPABILITIES Fully-Staffed Manufacturing and Fabrication Facilities Greater ability to control deliveries and provide customization Highly experienced in the design and fabrication process through decades…
NEW PRODUCT OFFERINGS Movement Into Higher Horsepower Offerings Expanding to 400 HP, 600 HP and 1,380 HP offerings Application diversity Higher well flows and larger gathering systems Pad-drilling Centralized gas-lift Potential…
HIGH HORSEPOWER MARKET 1,500 HP 1,000 HP New Markets 300 HP-1,500 HP 600 HP VOLUME 400 HP 300 HP Existing 200 HP Markets 50-300 HP 100 HP 50 HP TIME The move into higher horsepower equipment allows NGS to…
HIGH HORSEPOWER MARKET Advantages of High Horsepower Offerings Longer contracted terms Equipment typically on location longer than wellhead HP Higher frictional costs contribute to longer terms Customer has high freight and…
HIGH HORSEPOWER MARKET Advantages of High Horsepower Offerings Higher horsepower has a natural economic scale of horsepower in each unit Higher horsepower is approximately 9x larger than NGSs average small/medium unit horsepower (145…
HIGH HORSEPOWER MARKET NGS self-funded its entrance into the high horsepower market. Large horsepower compression was 40% (by HP) of the utilized NGS fleet in Q2 2020, up from only 4% in Q1 2017. Q1 2017 Q2 2020 4% 18% 34%…
CUSTOMER RELATIONSHIPS We have developed long-standing relationships providing compression equipment to many major and independent oil and natural gas companies. Our customers generally continue to rent our compressors after the…
Financial and Operating Appendix 16 CORPORATE OVERVIEW 2020
NATURAL GAS SERVICES GROUP RENTAL FLEET Total Rental Fleet Horsepower 500,000 446,805 450,000 429,650 401,361 398,765 400,000 372,482 369,961 362,408 351,187 350,000 Rental Fleet Horsepower 311,401 300,000 287,764…
NATURAL GAS SERVICES GROUP RENTAL FLEET Active Rental Fleet Units 3,500 3,000 2,879 2,622 2,556 2,530 2,546 2,572 2,500 Rental Fleet Size ( of Units) 2,304 2,335 2,279 2,120 2,000 1,909 1,500 1,000…
NATURAL GAS SERVICES GROUP RENTAL FLEET Average Horsepower Per Rental Fleet Unit 195 191 186 185 175 Horsepower Per Average Fleet Unit 165 155 155 145 145 143 142 139 137 137 136 135 130 125 2010…
NATURAL GAS SERVICES GROUP RENTAL FLEET Quarterly Average Revenue Per Active Rental Fleet Unit 12,250 11,886 11,750 11,641 11,250 Rental Revenue 10,788 10,750 10,303 10,250 9,878 9,815 9,750 9,454 9,457…
NATURAL GAS SERVICES GROUP EXECUTIVE LEADERSHIP Stephen C. Taylor Chief Executive Officer; Chairman of the Board of Directors Stephen C. Taylor has been President and Chief Executive Officer of Natural Gas Services Group since January…
Alicia Dada 404 Veterans Airpark Lane Investor Relations Suite 300 432-262-2700 Midland, Texas 79705 alicia.dadangsgi.com Website: www.ngsgi.com
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