Natural Gas Services Group, Inc. provides small to medium horsepower compression equipment to the natural gas industry. The company focuses primarily on the non-conventional natural gas production business in the United States, such as coal bed methane, gas shale and tight gas. The company manufactures, fabricates, and rents natural gas compressors that enhance the production of natural gas wells and provides maintenance services for those compressors. In addition, the company sells custom fabricated natural gas compressors to meet customer specifications dictated by well pressures, production characteristics and particular applications. The company also manufactures and sells flare systems for oil and gas plant and production facilities. Operating Units The company identifies its operating units based upon major revenue sources as Gas Compressor Rental, Engineered Equipment Sales, and Service and Maintenance. Gas Compressor Rental: The company’s rental business is primarily focused on non-conventional gas production. The company provides rental of small to medium horsepower compression equipment to customers under contracts typically having minimum initial terms of 6 to 24 months. As of December 31, 2013, the company had 2,556 natural gas compressors in its rental fleet totaling 351,187 horsepower. As of December 31, 2013, the company had 2,038 natural gas compressors totaling 283,165 horsepower rented to 95 customers. Engineered Equipment Sales: This operating unit includes the following components: Compressor fabrication: Fabrication involves the assembly of compressor components manufactured by the company or other vendors into compressor units that are ready for rental or sale. In addition to fabricating compressors for its rental fleet, the company engineers and fabricates natural gas compressors for sale to customers to meet their specifications based on well pressure, production characteristics and the particular applications for which compression is sought. Compressor manufacturing: The company designs and manufactures its own proprietary line of reciprocating compressor frames, cylinders and parts known as its ‘CiP’, or Cylinder-in-Plane, product line. The company uses the finished components to fabricate compressor units for its rental fleet or for sale to customers. The company also sells finished components to other fabricators. Flare fabrication: The company designs, fabricates, sells, installs and services 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. Parts sales and compressor rebuilds: To provide customer support for its compressor and flare sales businesses, the company stocks varying levels of replacement parts at its Midland, Texas facility and at field service locations. The company also provides an exchange and rebuild program for screw compressors and maintains an inventory of new and used compressors to facilitate this part of its business. Service and Maintenance: The company services and maintains compressors owned by its customers on an ‘as needed’ basis. The company performs wear-particle analysis on all packages and performs overhauls on a condition-based interval or a time-based schedule. Strategy The company’s long-term intentions to grow its revenue and profitability are based on the following business strategies: expand rental fleet; geographic expansion; expand its ‘secondary’ product lines; and selectively pursue acquisitions. Customers The company’s customers include EOG Resources, Inc. and Devon Energy Production, Inc. Regulations The company is subject to the requirements of Occupational Safety and Health Administration (OSHA) and comparable state statutes. These laws and the implementing regulations strictly govern the protection of the health and safety of employees. The OSHA hazard communication standard, the EPA community right-to-know regulations under Title III of CERCLA, and similar state statutes require that the company maintains and/or disclose information about hazardous materials used or produced in its operations. History Natural Gas Services Group, Inc. was founded in 1998. The company was incorporated in Colorado in 1998.
natural gas services group
508 West Wall Street
Midland, TX 79701
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