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, Service and Maintenance. Gas Compressor Rental The company’s rental business is primarily focused on non-conventional gas production. It provides rental of small to medium horsepower compression equipment to customers under contracts typically having minimum initial terms of 6 to 24 months. The size, type and geographic diversity of its rental fleet enables the company to provide its customers with a range of compression units that can serve a variety of applications, and to select the correct equipment for the job, rather than the customer trying to fit the job to its own equipment. As of December 31, 2012, the company had 2,279 natural gas compressors in its rental fleet totaling approximately 311,401 horsepower. As of December 31, 2012, the company had 1,756 natural gas compressors totaling approximately 245,340 horsepower rented to 100 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 maintain 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. Business 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 ‘secondary’ product lines; and selectively pursue acquisitions. Customers The company’s major customers include EOG Resources, Inc. and Devon Energy Production, Inc. Government Regulation The company’s operations are also subject to federal, state, and local regulations for the control of air emissions. The federal Clean Air Act, and various state and local laws impose on the company’s certain air quality requirements. 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
|No competitor information is available for NGS.|
|View Industry Companies|
Sponsored Financial Commentaries
To contact NATURAL GAS SERVICES GROUP, please visit www.ngsgi.com. Company data is provided by Capital IQ. Please use this form to report any data issues.