Compressor fleet utilization rates - movement above 85% signals pricing power and capacity constraints
Natural gas production volumes in core operating basins (Permian, Haynesville, Marcellus/Utica) - drives new unit deployments
Natural gas prices (Henry Hub) - higher prices incentivize producers to maximize output, increasing compression demand
Rental rate trends and contract renewals - ability to push through price increases on existing fleet
high - NGS revenue is directly tied to oil and gas production activity, which correlates strongly with commodity prices and broader industrial demand. During recessions, energy producers cut capex and defer production optimization, reducing compression demand. The 262% net income growth reflects recovery from 2020-2021 trough levels. Industrial production and manufacturing activity drive natural gas demand, creating indirect linkage to GDP growth.
Rising rates create moderate headwinds through two channels: (1) higher financing costs for fleet expansion capex and working capital (0.77x debt/equity suggests moderate leverage), and (2) compressed valuation multiples as investors demand higher returns from capital-intensive businesses. However, NGS benefits from inflation-linked pricing power in rental contracts, partially offsetting rate impacts. Customer E&P companies face higher borrowing costs, potentially reducing drilling activity and compression demand.
Energy transition and declining long-term natural gas demand - regulatory pressure and renewable energy adoption could reduce domestic gas production over 10-20 year horizon
Technological obsolescence - electric compression and alternative artificial lift technologies could displace traditional gas-powered compression in certain applications
Consolidation among E&P customers - larger integrated producers increasingly bring compression services in-house or negotiate aggressive pricing with scale competitors
value - The stock appeals to energy-focused value investors seeking recovery plays with operational leverage to commodity price improvements. The 256% EPS growth, 35% 1-year return, and 2.8x P/S ratio (below historical peaks) attract investors betting on continued margin expansion as utilization improves. Small-cap energy specialists and contrarian investors willing to accept cyclical volatility dominate the shareholder base. Not suitable for ESG-focused or growth-at-any-price investors.
Trend
+10.7% vs SMA 50 · +37.0% vs SMA 200
Momentum
Accumulation pattern present — more buying days than selling over the past 20 sessions. Volume conditions support gradual price improvement.
Based on volume distribution analysis. Direct short interest data (short float %, days to cover) is not available in current data sources.
ANALYST ESTIMATES
Analyst consensus estimates · Actuals replace estimates as reported
| Year | Revenue Est. | Rev Gth | EPS Est. | EPS Gth | Range | Analysts |
|---|---|---|---|---|---|---|
FY2023 | $143.0M $141.6M–$143.8M | — | $1.07 | — | ±1% | Low1 |
FY2024 | $156.9M $155.4M–$157.8M | ▲ +9.7% | $1.41 | ▲ +31.6% | ±1% | Low2 |
FY2025 | $170.4M $168.9M–$171.4M | ▲ +8.6% | $1.62 | ▲ +15.5% | ±1% | Low2 |
Dividend per payment — last 4 periods
INSTITUTIONAL OWNERSHIP
NGS News
About
NGS is a leading provider of gas compression services and equipment to the energy industry. The Company manufactures, fabricates, rents, sells and maintains natural gas compressors and flare systems for oil and natural gas production and plant facilities. NGS is headquartered in Midland, Texas, with fabrication facilities located in Tulsa, Oklahoma and Midland, Texas, and service facilities located in major oil and natural gas producing regions in the U.S.
| Symbol | Price | Day % | Mkt Cap↓ | P/E | Rev Grw | Margin | ELO |
|---|---|---|---|---|---|---|---|
NGS◀ | $42.40 | +0.74% | $534M | 24.4 | +993.5% | — | 1500 |
| $157.93 | +3.37% | $654.6B | 26.1 | -452.2% | 890.5% | 1500 | |
| $191.06 | +2.37% | $380.5B | 34.4 | -464.4% | 666.9% | 1491 | |
| $122.41 | +2.89% | $149.1B | 20.5 | +751.1% | 1360.5% | 1501 | |
| $77.72 | +0.04% | $95.1B | 33.5 | +1377.7% | 2190.8% | 1503 | |
| $55.38 | -0.66% | $82.8B | 25.1 | -159.8% | 938.1% | 1514 | |
| $33.63 | +0.69% | $74.8B | 22.6 | +1245.3% | 1802.9% | 1498 | |
| Sector avg | — | +1.35% | — | 26.6 | +470.2% | 1308.3% | 1501 |