Natural Gas Services Group initiates first-ever quarterly dividend

MIDLAND, Texas - Natural Gas Services Group, Inc. (NYSE:NGS) announced Wednesday its Board of Directors has declared the company’s first-ever quarterly cash dividend of $0.10 per share of common stock. The announcement comes as the company trades at $24.63, having delivered a strong 21.81% return over the past year, according to InvestingPro data.

The dividend will be paid on August 22, 2025, to stockholders of record as of the close of business on August 8, 2025, according to a company press release. On an annualized basis, this represents $0.40 per share.

"This dividend marks a significant milestone in the history of NGS," said Justin Jacobs, Chief Executive Officer of NGS, in the statement. Jacobs noted the dividend reflects the company’s "strong financial performance" and "confidence in the future of our business."

The company, which provides natural gas compression equipment and services to the energy industry, described the move as the beginning of a shareholder return of capital plan that it expects to grow as business expands.

NGS also announced it will release its second quarter 2025 financial results on Monday, August 11, 2025, after market close, followed by a conference call on Tuesday, August 12.

The company noted that future dividend declarations remain subject to Board approval. NGS is headquartered in Midland, Texas, with additional facilities in Tulsa, Oklahoma, and other major oil and natural gas producing regions across the U.S.

In other recent news, ePlus has announced the sale of its U.S. financing business to Marlin Leasing Corporation, operating as PEAC Solutions. This divestiture allows ePlus to focus on its core technology and services operations, providing the company with additional capital for growth in technology services. Meanwhile, Natural Gas Services Group recently held its annual shareholder meeting, where shareholders elected four directors and voted on executive compensation and equity plan amendments. Stifel has raised its price target for Natural Gas Services to $33, maintaining a Buy rating after the company slightly exceeded earnings forecasts for the first quarter of 2025. The firm also noted improvements in the company’s 2025 guidance and stable pricing expectations.

Additionally, Raymond James reaffirmed a Strong Buy rating for Natural Gas Services, maintaining a $32 price target. The analyst highlighted the company’s strong start to 2025 and anticipated improvements in the latter half of the year due to equipment deliveries. Natural Gas Services has achieved high rental margins and adjusted EBITDA, with revenue guidance increased to a range of $74 to $79 million. The company expects to recover $11 million in income tax receivables in the next 12 months, contributing to its financial outlook.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.