Natural Gas Services Group, Inc. (NGS) Earnings Call Transcripts

Natural Gas Services Group, Inc.'s Latest Earnings Call - June 15, 2026

In the second quarter of fiscal year 2026, Natural Gas Services Group, Inc. (NGS:US) announced the acquisition of Flatrock Compression Holdings for $120 million, comprising $110 million in cash and $10 million in stock. This strategic acquisition is expected to enhance NGS's operational capabilities and customer portfolio, particularly in the Permian and Eagle Ford basins. While no specific guidance was provided, management indicated that the transaction is immediately accretive to earnings and cash flow, with pro forma leverage expected to remain around 3x adjusted EBITDA.

Reported metrics

Guidance from management

Management did not provide updated guidance during the call but indicated that the impact of the acquisition would be reflected in guidance during the second quarter earnings call in August.

What management said

Sure. So the -- we mentioned specifically, there are two large publicly traded E&P customers of Flatrock. We do not or NGS did not have any business with those customers, prior to the acquisition. And as a smaller private company, Flatrock did not have the access to capital that we are fortunate to have, and so as we look at the opportunities going forward with those customers, in particular, and then the broader F...

Sure. As we look at the percentage that is of their fleet by horsepower base, percentage of the fleet that is under term, it's a very similar percentage and we're not going to see a material movement on the pro forma side. So really pretty similar amount of horsepower that's under contract with generally similar rates and tenor or so not material changes there on a pro forma basis.

What analysts pressed on

Analysts expressed concerns regarding the integration of Flatrock's operations and the potential for realizing projected synergies. There were also inquiries about the future growth plans and how the acquisition would affect NGS's existing operations and workforce.

Main topics on the call

• Acquisition of Flatrock Compression — NGS acquired Flatrock Compression, which adds approximately 86,000 rented horsepower to NGS's fleet, increasing the total to about 661,000. CEO Justin Jacobs stated, "Flatrock checks every one of those boxes and does so ...
• Customer Portfolio Diversification — Post-acquisition, the concentration of revenue from top customers decreases from 64% to 54%, expanding NGS's customer base. Jacobs noted, "This expands our reach, broadens our customer portfolio and creates meaningful op...
• Strengthened Basin Position — The acquisition enhances NGS's footprint in key markets, particularly the Permian Basin, where 80% of Flatrock's horsepower is located. This operational density is expected to improve efficiency and customer responsivene...
• Financial Impact and Leverage — The acquisition was completed at approximately 6.2x annualized first quarter 2026 EBITDA, which is considered a discount to NGS's current trading multiple. Pro forma leverage is expected to be around 3x adjusted EBITDA, ...

Read the full Natural Gas Services Group, Inc. transcript (June 15, 2026) → Summary generated from the call transcript; every figure above is stated by management on the record.

Earnings Call History

EarningsCalls.dev has 27 Natural Gas Services Group, Inc. earnings call transcripts on record, spanning April 2, 2020 to June 15, 2026. Based on this history, Natural Gas Services Group, Inc. reports quarterly. The most recent call on file is dated June 15, 2026. The full list is below — each row opens the complete, free-to-read transcript.

Ticker

NGS

Exchange

NYSE

Country

US

Sector

Energy

Industry

Energy Equipment and Services

Calls on record

27

First call

April 2, 2020

Most recent

June 15, 2026

Reporting cadence

quarterly