Natural Gas Services Group Inc's Business Segments
Natural Gas Services Group Inc's reported revenue by business segment and by geographic region, quarterly and annual, normalized against the consolidated income statement. Free below: the top 3 rows per table, this quarter and this fiscal year. Subscriber access adds the full segment history and operating income by segment.
Revenue Share by Reportable Segment - FY
- Aftermarket services3.6%
- Sales0.9%
Revenue by Reportable Segment - FY
| Segment | Revenue (Millions) | % of Total |
|---|---|---|
| Aftermarket services | $ 2 | 3.6% |
| Sales | $ 0 | 0.9% |
Revenue by Product & Service Category - FY
- Aftermarket services1.9%
- Product Sales1.9%
- Parts1.2%
- Product and Service, Other0.7%
Revenue by Product & Service Category - FY
| Category | Revenue (Millions) | % of Total |
|---|---|---|
| Aftermarket services | $ 1 | 1.9% |
| Product Sales | $ 1 | 1.9% |
| Parts | $ 1 | 1.2% |
Product and service categories are a supplemental disclosure and are not required to sum to consolidated revenue or to the reportable segments above.
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Annual Results
Revenue Share by Reportable Segment - FY
- Aftermarket services3.6%
- Sales0.9%
Revenue by Reportable Segment - FY
| Segment | Revenue (Millions) | % of Total |
|---|---|---|
| Aftermarket services | $ 2 | 3.6% |
| Sales | $ 0 | 0.9% |
Description of Natural Gas Services Group Inc
We are a leading provider of small to medium horsepower compression equipment to the natural gas industry, with an emerging position in the large horsepower market. We focus primarily on the non-conventional natural gas and oil production business in the United States (such as coal bed methane, gas shale, tight gas and oil shales), which, according to data from the Energy Information Administration ("EIA"), is the single largest and fastest growing segment of U.S. hydrocarbon production. We manufacture, fabricate and rent natural gas compressors that enhance the production of natural gas wells and provide maintenance services for those compressors. In addition, we sell custom fabricated natural gas compressors to meet customer specifications dictated by well pressures, production characteristics and particular applications. We also manufacture and sell flare systems for oil and gas plant and production facilities.
The vast majority of our rental operations are in non-conventional natural gas and oil regions, which typically have lower initial reservoir pressures, lower production pressures and/or faster well decline rates. These areas usually require compression to be installed sooner and with greater frequency.
Natural gas compressors are used in a number of applications for the production and enhancement of gas wells and in gas transportation lines and processing plants. Compression equipment is often required to boost a well’s production to economically viable levels and to enable gas to continue to flow in the pipeline to its destination.
The market for compression equipment and services is substantially dependent on the condition of the natural gas and oil industry. In particular, the willingness of natural gas and oil companies to make capital expenditures on exploration, drilling and production of natural gas and oil in the U.S. The level of activity and capital expenditures has generally been dependent upon the prevailing view of future gas and oil prices, which are influenced by numerous factors, including the level of supply or demand for natural gas and oil and the impact on price of natural gas and oil, worldwide economic activity, interest rates and the cost of capital, environmental regulation, seasonal fluctuations and weather patterns. Natural gas and oil prices and the level of production activity have historically been characterized by significant volatility.
Expand rental fleet. We intend to prudently increase the size of our rental fleet by fabricating compressor units in numbers that correspond to the growth of the market and in relation to market share gains we may experience. We believe our growth will continue to be primarily driven through our placement of small to medium horsepower wellhead natural gas compressors for non-conventional natural gas and oil production, with an emerging position in the large horsepower market.
Geographic expansion. We will continue to consolidate our operations in existing areas, as well as pursue focused expansion into new geographic regions as opportunities are identified. We presently provide our products and services to a customer base of oil and natural gas exploration and production companies operating in Colorado, Kansas, Michigan, New Mexico, North Dakota, Ohio, Oklahoma, Pennsylvania, Texas, Utah, West Virginia and Wyoming.
Expand our ‘secondary’ product lines. In addition to our primary rental and engineered product business lines, we will emphasize the growth of our other products, e.g., flares, CiP compressor products and general compressor maintenance and repair services.
Selectively pursue acquisitions. We will continue to evaluate potential acquisitions, joint ventures and other opportunities that could provide us with access to new markets or enhance our current market position.
Compressor fabrication. Fabrication involves the assembly of compressor components manufactured by us or other vendors into compressor units that are ready for rental or sale. In addition to fabricating compressors for our rental fleet, we engineer and fabricate 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. We design and manufacture our own proprietary line of reciprocating compressor frames, cylinders and parts known as our “CiP”, or Cylinder-in-Plane, product line. We use the finished components to fabricate compressor units for our rental fleet or for sale to customers. We also sell finished components to other fabricators.
Flare fabrication. We design, fabricate, sell, install and service 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. Applications for this equipment are often environmentally and regulatory driven, and we believe we are a leading supplier to this market.
Parts sales and compressor rebuilds. To provide customer support for our compressor and flare sales businesses, we stock varying levels of replacement parts at our Midland, Texas facility and at field service locations. We also provide an exchange and rebuild program for screw compressors and maintain an inventory of new and used compressors to facilitate this part of our business.
Service and Maintenance. We service and maintain compressors owned by our customers on an “as needed” basis. Natural gas compressors require routine maintenance and periodic refurbishing to prolong their useful life. Routine maintenance includes physical and visual inspections and other parametric checks that indicate a change in the condition of the compressors. We perform wear-particle analysis on all packages and perform overhauls on a condition-based interval or a time-based schedule. Based on our past experience, these maintenance procedures maximize component life and unit availability and minimize downtime.
Segments
1. Natural Gas Compression Services:
- NGS offers natural gas compression services that involve the rental and sale of compression equipment. This is crucial for maintaining pressure within natural gas pipelines and gathering systems, ensuring a steady flow of gas from production sites to processing facilities and end users.
2. Natural Gas Processing:
- The company provides solutions for the processing of natural gas. This includes the removal of impurities and the separation of hydrocarbons to produce pipeline-quality natural gas. Services may also encompass the refining of associated liquids.
3. Natural Gas Measurement and Monitoring:
- NGS supplies measurement and monitoring equipment to accurately gauge the flow and quality of natural gas. This includes metering technologies that comply with regulatory standards and provide accurate data crucial for billing and operational efficiency.
4. Turnkey Solutions:
- NGS offers comprehensive turnkey solutions for customers looking for a one-stop service for their natural gas needs. This might include everything from project design and engineering to installation, operation, and maintenance of gas compression and processing facilities.
Products
1. Compression Equipment:
- NGS provides a range of natural gas compressors, including both reciprocating and rotary types. These pieces of equipment are available for rent or sale and come in various sizes and configurations to meet the specific needs of clients in different markets.
2. Processing Equipment:
- The company offers various products used in natural gas processing, such as dehydration units, separators, and scrubbers. These components are essential for removing water, sand, and other contaminants from the gas stream.
3. Measurement Devices:
- NGS manufactures and distributes advanced measurement instruments and systems, including flow meters and analyzers that ensure compliance with industry standards and regulations.
4. Control Systems:
- The company also provides control systems that enhance monitoring and operational efficiency within gas facilities, ensuring that processes are optimized and controllable remotely if necessary.
5. Skid-mounted Solutions:
- NGS builds customized skid-mounted systems that integrate various compressor and processing equipment in a mobile and easily transportable format. These are particularly useful for temporary installations or areas where space is limited.
Services
1. Equipment Rental:
- NGS offers flexible rental options for its equipment, allowing customers to scale up and down based on their operational needs. This is especially important in the fluctuating oil and gas market.
2. Maintenance and Repair Services:
- The company provides maintenance and repair services for its equipment and products, ensuring that clients can maximize their operational uptime and efficiency. This includes routine inspections, troubleshooting, and emergency repairs.
3. Field Services:
- NGS offers field support which includes on-site installation of equipment, operational training for client staff, and ongoing technical support to ensure that systems are correctly implemented and functioning optimally.
4. Engineering and Design Services:
- The company delivers expert engineering and design services, helping clients plan and design their compression and processing facilities to meet both operational requirements and regulatory standards.
5. Consultation Services:
- NGS provides consultation services that guide clients through the regulatory landscape associated with natural gas operations, helping them understand compliance needs and best practices in equipment usage.
Conclusion
Natural Gas Services Group, Inc. has established itself as a significant player in supporting the natural gas industry through its diverse segments, innovative products, and comprehensive services. Their offerings cater to a variety of customer needs, from equipment rental and sales to full-service engineering solutions, ensuring operational efficiency and compliance in the ever-evolving energy landscape.