Natural Gas Services Group, Inc. reports strong financial results for second quarter of 2024

From GlobeNewswire: 2024-08-14 16:40:00

Natural Gas Services Group, Inc. reported strong financial results for the second quarter of 2024, with rental revenue up 45% to $34.9 million, net income at $4.3 million, and Adjusted EBITDA at $16.5 million. The company also increased its full-year outlook for Adjusted EBITDA and growth capital expenditures.

CEO Justin Jacobs highlighted a strong market for oil production, growth in compression demand, and new contracts with blue chip customers. The company anticipates significant growth in rental fleet horsepower, revenue, and cash flow, with investments in large horsepower fleet and electric compression units expected to drive value creation.

For the 2024 fiscal year, Natural Gas Services Group now expects Adjusted EBITDA to be in the range of $64 million to $68 million, with growth capital expenditures ranging from $60 million to $80 million. Maintenance capital expenditures are projected to be between $8 million and $11 million, with a target return on invested capital of at least 20%.

In the second quarter of 2024, total revenue increased to $38.5 million, with gross margins at $13.4 million and operating income at $8.5 million. Net income for the quarter was $4.3 million, with Adjusted EBITDA at $16.5 million. Cash and cash equivalents at June 30, 2024, were approximately $3.6 million, while working capital stood at $40.3 million.



Read more at GlobeNewswire:: Natural Gas Services Group, Inc. Reports Second Quarter