Natural Gas Services Group appoints new board member

MIDLAND, Texas - Natural Gas Services Group, Inc. (NYSE: NGS), a provider of natural gas compression equipment and services, has announced the appointment of Anthony Gallegos to its Board of Directors, effective April 1, 2025. Gallegos steps into the role following the retirement of his predecessor, David Bradshaw, in December 2024. The appointment comes as NGS maintains a strong financial position, with InvestingPro data showing the company’s revenue grew by 29% in the last twelve months to $157 million, while maintaining a healthy gross profit margin of 56%.

Gallegos brings over three decades of experience in the energy sector to NGS, including his current role as President, CEO, and Director of Independence Contract Drilling, Inc. His prior experience includes co-founding Sidewinder Drilling Company and holding various executive positions in companies such as Scorpion Offshore Ltd., Transocean Offshore, Atwood Oceanics, and Ensco. According to InvestingPro, NGS currently trades at an attractive P/E ratio of 15x, with analysts setting price targets between $32 and $45, suggesting significant upside potential. Get access to 6 more exclusive InvestingPro Tips and comprehensive financial analysis with a subscription.

Justin Jacobs, CEO of NGS, expressed enthusiasm for Gallegos’ appointment, highlighting his operational expertise and industry understanding as key assets for the company’s future growth and shareholder value. Gallegos himself is eager to contribute his experience to the company’s expansion and profitability.

Stephen Taylor, Chairman of the Board at NGS, also welcomed Gallegos, noting his valuable expertise in the oilfield services industry. Gallegos’ diverse background covers operational, marketing, and corporate planning roles, and he started his career as a roughneck in the U.S. Gulf of Mexico. He is a U.S. Army veteran and holds degrees from Texas A&M University and Rice University.

NGS specializes in renting, operating, and maintaining natural gas compressors for oil and gas production and processing facilities. The company also designs and assembles compressor units for rental and provides aftermarket services. Headquartered in Midland, Texas, NGS operates a fabrication facility in Tulsa, Oklahoma, a rebuild shop in Midland, and service facilities in major U.S. oil and natural gas producing basins. The company maintains a solid financial foundation with a current ratio of 2.78, indicating strong liquidity, and has demonstrated consistent profitability with earnings per share of $1.37 in the last twelve months. Discover detailed insights and Fair Value analysis in NGS’s comprehensive Pro Research Report, available exclusively on InvestingPro.

This announcement is based on a press release statement from Natural Gas Services Group, Inc.

In other recent news, Natural Gas Services Group Inc. reported its financial results for the fourth quarter of 2024, showing a mixed performance. The company revealed that earnings per share (EPS) were $0.23, falling short of the expected $0.26, while revenue reached $40.66 million, surpassing the forecast of $39.62 million. The company experienced a 12% year-over-year increase in revenue and a significant 68% rise in net income for the quarter. Additionally, rental revenue surged by 212% compared to the previous year, indicating strong demand in the market.

Raymond James analyst James Rollyson revised the price target for Natural Gas Services to $32.00 from $33.00, maintaining a Strong Buy rating. This adjustment follows the company’s solid performance and updated growth capital expenditure forecast, which includes deferred spending from the fourth quarter of 2024 to 2025. Despite the slight downgrade in the 2025 EBITDA guidance, Rollyson attributes this to timing rather than operational issues.

Natural Gas Services Group has projected an adjusted EBITDA of $74-78 million for 2025, with significant horsepower deployment expected in the second quarter of 2025 and early 2026. The company is focusing on electric drive units, with most 2026 orders being electric, and anticipates a projected 18% increase in rented horsepower. These developments reflect the company’s strategic focus on expanding its operational capabilities and enhancing its offerings in the compression industry.

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