Natural Gas Services Group, Inc. (NGS) Stock

Natural Gas Services Group, Inc. (NGS) is a Energy stock trading at $35.29 (as of 2026-09-02), with a market capitalization of $454.79M and a trailing P/E of 22.2. Figures are sourced from first-party U.S. SEC EDGAR filings and market data.

Natural Gas Services Group, Inc. provides natural gas compression services and equipment to the energy industry in the United States. It fabricates, manufactures, rents, and sells natural gas compressors and related equipment. The company primarily engages in the rental of compression units that provide small, medium, and large horsepower applications for unconventional oil and natural gas production. As of December 31, 2021, the company had 2,023 natural gas compression units in its rental fleet with 418,041 horsepower. The company also engages in the design, fabrication, and assembly of compressor components into compressor units for rental or sale; engineers and fabricates natural gas compressors; and designs and manufactures a line of reciprocating compressor frames, cylinders, and parts. In addition, it is involved in the design, fabrication, sale, installation, and service of flare stacks and related ignition and control devices for the onshore and offshore incineration of gas compounds, such as hydrogen sulfide, carbon dioxide, natural gas, and liquefied petroleum gases. Further, the company offers customer support services for its compressor and flare sales business; and exchange and rebuild program for small horsepower screw compressors. Its primary customers are exploration and production(E&P) companies that utilize compressor units for artificial lift applications; E&P companies that focuses on natural gas-weighted production; and midstream companies. Natural Gas Services Group, Inc. was incorporated in 1998 and is headquartered in Midland, Texas.

Understand Natural Gas Services Group, Inc.: how it makes money

NGS rents, fabricates, and sells natural gas compressors (small to large horsepower) to oil and gas producers, earning recurring rental fees on machines deployed at well sites. The business is a physical fleet: utilization, price per horsepower per month, and contract length drive earnings, with most revenue anchored in the Permian Basin.

Revenue equals horsepower deployed times utilization times price per horsepower per month, and 80% of rented horsepower sits in term contracts that lock in multi-year revenue visibility.

Business quality (Solid): Solid: 19% operating margin with 24% revenue growth underpinned by a 2,000+ unit fleet and term-contract visibility, though geographic concentration and capex intensity limit the quality premium.

Valuation: At 19× earnings, NGS trades 21% above the Petroleum & Natural Gas average (16×).

Bull case

  • Fleet utilization nears full capacity: Large-horsepower units reached 99% utilization with higher pricing and longer contracts, meaning the company is essentially sold out and can reprice upward on every replacement or expansion cycle.
  • Organic horsepower growth accelerating: Management raised organic 2026 deployment expectations to at least 55,000 additional horsepower, a meaningful top-line expansion layer on top of the FlatRock acquisition that does not require further M&A.
  • Acquired at a valuation discount: FlatRock was purchased below NGS's own P/E multiple before any synergy credit, giving the stock embedded accretion even in a conservative scenario.

Bear case

  • Permian geographic concentration: Revenue remains heavily concentrated in the Permian Basin, so a regional rig-count decline, production plateau, or regulatory shift would hit the core rental base with limited geographic diversification to offset it.
  • Input inflation vs. fixed pricing: Rising costs for labor, parts, and lubricants threaten the 19% operating margin; because a meaningful share of the fleet is on shorter or month-to-month terms, immediate full pass-through to customers is uncertain.
  • Capex ramp before revenue lag: Growth capital spending is expected to rise materially in the second half to build out new units, pressuring free cash flow for one to two quarters before the added horsepower begins generating rental income.
Valuation — source: SEC EDGAR (first-party)
Price$35.29
Market Cap$454.79M
P/E Ratio22.2
EV / EBITDA5.9
Price / Book1.54
Price / Sales2.40
FCF Yield-12.9%
DCF Value (model)$34.09
DCF Upside vs Price-3.4%
Profitability & Growth — source: SEC EDGAR
Revenue (TTM)$172.31M
Net Margin11.6%
Revenue Growth (YoY)24.2%
EPS Growth (YoY)-28.6%
FCF Growth (YoY)-212.7%
Financial Health — source: SEC EDGAR
Altman Z-Score1.83 (grey)
Valuation vs Sector & Industry
Stock P/E22.2
Sector P/E (Energy)16.1
Industry P/E (Petroleum & Natural Gas)15.4
vs Sector38.2%
vs Industry44.3%
Smart-Money Activity — SEC Form 4 / 13F / Congressional disclosures
Top Institutional HolderDIMENSIONAL FUND ADVISORS LP ($31.85M)
Institutional Holders Tracked10
Company
SectorEnergy
IndustryPetroleum & Natural Gas
CEOJustin C. Jacobs
Employees245
CountryUS
IPO Date2002-10-22

Natural Gas Services Group, Inc. earnings call transcripts

  • NGS Q2 FY26 earnings call transcript (reported 2026-08-10) · analysis
  • NGS Q4 FY25 earnings call transcript (reported 2026-03-16) · analysis

All NGS earnings calls

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NGS earnings history · NGS institutional & insider holders · NGS KPIs & operating metrics · NGS financials · NGS investor presentations & press releases · NGS SEC filings · NGS peers · Congress trades · Insider trades · Short interest · Stock screener

Data as of 2026-09-02.

Figures sourced from U.S. Securities and Exchange Commission (SEC EDGAR) filings and market data. Not personalized investment advice.