$NGS

NATURAL GAS SERVICES GROUP INC

CIK:0001084991|SEC Filings

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) shares in Thousands, $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2026	Jun. 30, 2025	Jun. 30, 2026	Jun. 30, 2025
Revenue:
Rental	$ 49,433	$ 39,580	$ 96,548	$ 78,490
Total revenue	51,401	41,382	99,868	82,765
Cost of revenue (excluding depreciation and amortization):
Rental	19,217	15,528	36,307	30,368
Sales	664	911	1,288	2,927
Aftermarket services	709	720	1,214	991
Total cost of revenues (excluding depreciation and amortization)	20,590	17,159	38,809	34,286
Selling, general and administrative expense	9,911	5,454	16,419	10,832
Depreciation and amortization	10,979	8,969	21,304	17,605
Inventory allowance	0	0	0	61
Retirement of rental equipment	0	0	412	728
Gain on disposition of assets, net	(1)	(124)	(71)	(178)
Total operating costs and expenses	41,479	31,458	76,873	63,334
Operating income	9,922	9,924	22,995	19,431
Other income (expense):
Interest expense	(4,442)	(3,243)	(8,470)	(6,413)
Interest income	36	0	36	0
Other income (expense)	29	104	(97)	103
Total other income (expense), net	(4,377)	(3,139)	(8,531)	(6,310)
Income before income taxes	5,545	6,785	14,464	13,121
Provision for income taxes	(1,715)	(1,597)	(3,871)	(3,079)
Net income	$ 3,830	$ 5,188	$ 10,593	$ 10,042
Earnings per share:
Basic (in dollars per share)	$ 0.30	$ 0.42	$ 0.84	$ 0.81
Diluted (in dollars per share)	$ 0.30	$ 0.41	$ 0.83	$ 0.80
Weighted average shares outstanding:
Basic (in shares)	12,664	12,483	12,624	12,473
Diluted (in shares)	12,842	12,625	12,799	12,629
Sales
Revenue:
Revenue from contract with customer, excluding assessed tax	$ 980	$ 750	$ 1,471	$ 2,677
Aftermarket services
Revenue:
Revenue from contract with customer, excluding assessed tax	$ 988	$ 1,052	$ 1,849	$ 1,598

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2026	Jun. 30, 2025
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income	$ 10,593	$ 10,042
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization	21,304	17,605
Inventory allowance	0	61
Retirement of rental equipment	412	728
Gain on disposition of assets, net	(71)	(178)
Amortization of debt issuance costs	695	506
Deferred income taxes	3,932	3,011
Stock-based compensation	1,430	938
Provision for credit losses	88	208
Loss (gain) on company owned life insurance	103	(17)
Changes in operating assets and liabilities:
Trade accounts receivables	(863)	1,676
Inventory	(1,570)	(344)
Prepaid expenses, income taxes receivable and prepayments	12,488	(1,897)
Accounts payable and accrued liabilities	2,271	513
Other	(2,345)	(589)
NET CASH PROVIDED BY OPERATING ACTIVITIES	48,467	32,263
CASH FLOWS FROM INVESTING ACTIVITIES:
Purchases of rental equipment, property and other equipment	(34,033)	(45,065)
Acquisition, net of cash acquired	(108,680)	0
Proceeds received from insurance for damages to equipment	0	99
Proceeds from disposition of assets, net	37	4
NET CASH USED IN INVESTING ACTIVITIES	(142,676)	(44,962)
CASH FLOWS FROM FINANCING ACTIVITIES:
Proceeds from credit facility borrowings	134,500	23,122
Repayments of credit facility borrowings	(36,500)	(11,122)
Payments of debt issuance costs	(1,068)	(1,187)
Proceeds from exercise of stock options	1,028	75
Payment of dividends	(3,279)	0
Taxes paid related to net share settlement of equity awards	(388)	(6)
NET CASH PROVIDED BY FINANCING ACTIVITIES	94,293	10,882
NET CHANGE IN CASH AND CASH EQUIVALENTS	84	(1,817)
CASH AND CASH EQUIVALENTS AT BEGINNING OF PERIOD	0	2,142
CASH AND CASH EQUIVALENTS AT END OF PERIOD	84	325
SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION:
Interest paid, net of amounts capitalized	7,356	7,037
Income taxes paid, net of (refunds) received	(11,641)	16
NON-CASH TRANSACTIONS:
Transfer of property and equipment to assets held for sale	8,759	2,227
Accrued purchases of property and equipment	2,967	7,254
Right of use assets acquired through an operating lease	1,632	0
Common stock issued in connection with acquisition	9,999	0
Common stock issued to settle liability-classified awards	$ 413	$ 0

CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands	Jun. 30, 2026	Dec. 31, 2025
Current Assets:
Cash and cash equivalents	$ 84	$ 0
Trade accounts receivable, net of provision for credit losses	22,025	18,497
Inventory, net of allowance for obsolescence	29,110	20,647
Income taxes receivable and prepayments	445	14,056
Prepaid expenses and other	3,000	1,696
Assets held for sale	10,986	2,227
Total current assets	65,650	57,123
Long-term inventory, net of allowance for obsolescence	0	0
Rental equipment, net of accumulated depreciation	613,771	498,525
Property, Plant, and Equipment, after Accumulated Depreciation, Depletion, and Amortization	22,047	20,519
Goodwill	824	0
Intangible assets, net of accumulated amortization	1,139	0
Other assets	14,912	10,619
Total assets	718,343	586,786
Current Liabilities:
Accounts payable	16,653	14,048
Accrued liabilities	15,980	10,462
Total current liabilities	32,633	24,510
Long-term debt	328,000	230,000
Deferred income taxes	56,777	52,530
Other long-term liabilities	6,447	5,030
Total liabilities	423,857	312,070
Commitments and contingencies (Note 12)
Stockholders’ Equity:
Preferred stock, 5,000 shares authorized, no shares issued or outstanding	0	0
Common stock, 30,000 shares authorized, par value $0.01; 14,207 and 13,883 shares issued, respectively	142	138
Additional paid-in capital	133,289	120,811
Retained earnings	176,059	168,771
Treasury shares, at cost, 1,310 shares for each of the dates presented, respectively	(15,004)	(15,004)
Total stockholders’ equity	294,486	274,716
Total liabilities and stockholders’ equity	$ 718,343	$ 586,786