Natural Gas Services Group Inc (NGS) 2024 Q3 法說會逐字稿

Good morning, ladies and gentlemen, and welcome to the Natural Gas Services Group Incorporated quarter three earnings call.

女士們、先生們，早安，歡迎參加天然氣服務集團公司第三季財報電話會議。

(Operator Instructions)

（操作員指令）

I would now like to turn the call over to Ms. Anna Delgado.

現在我想將電話轉給安娜·德爾加多女士。

Please begin.

請開始。

Thank you, Luke, and good morning, everyone.

謝謝你，盧克，大家早安。

Before we begin, I would like to remind you that during the course of this conference call, the company will be making forward-looking statements within the meaning of federal securities laws.

在我們開始之前，我想提醒您，在本次電話會議期間，本公司將根據聯邦證券法做出前瞻性陳述。

Investors are cautioned that forward-looking statements are not guarantees of future performance and those actual results or developments may differ materially from those projected in the forward-looking statements.

投資人應注意，前瞻性陳述並不能保證未來的業績，實際結果或發展可能與前瞻性陳述中的預測有重大差異。

Finally, the company can give no assurance that such forward-looking statements will prove to be correct.

最後，該公司不能保證此類前瞻性聲明將被證明是正確的。

Natural Gas Services Group disclaims any intention or obligation to update or revise any forward-looking statements whether as a result of new information, future events or otherwise.

天然氣服務集團不承擔因新資訊、未來事件或其他原因而更新或修改任何前瞻性聲明的意圖或義務。

Accordingly, you should not place undue reliance on forward-looking statements.

因此，您不應過度依賴前瞻性陳述。

These and other risks are described in yesterday's earnings press release and in our filings with the SEC including our form 10-Q for the period ended September 30, 2024, form 8-K, and in our form 10-K for the year end December 31, 2023.

這些風險和其他風險在昨天的收益新聞稿和我們向美國證券交易委員會提交的文件中均有描述，包括截至2024 年9 月30 日的10-Q 表、8-K 表以及截至2021 年12 月的10-K 表。

These documents can be found in the investors section of our website located at www.ngsgi.com. Should one or more of these risks materialize or should underlying assumptions prove incorrect, actual results may vary materially.

這些文件可以在我們網站 www.ngsgi.com 的投資者部分找到。如果其中一個或多個風險成為現實，或基本假設被證明不正確，實際結果可能會發生重大差異。

In addition, our discussion today will reference certain non-GAAP financial measures including EBITDA, adjusted EBITDA, and adjusted growth margin, among others.

此外，我們今天的討論將參考某些非 GAAP 財務指標，包括 EBITDA、調整後的 EBITDA 和調整後的成長利潤率等。

For reconciliations of these non-GAAP financial measures to the most directly comparable measures under GAAP, please see yesterday's earnings release.

有關這些非 GAAP 財務指標與 GAAP 下最直接可比較指標的調整表，請參閱昨天的收益報告。

I will now turn the call over to Justin Jacobs, our Chief Executive Officer.

現在我將把電話轉給我們的執行長賈斯汀雅各布斯（Justin Jacobs）。

Justin?

賈斯汀？

Thank you, Anna, and good morning.

謝謝你，安娜，早安。

I will start by introducing the team.

我先介紹一下這個團隊。

Joining me today on the call this morning is John Bittner, our Interim Chief Financial Officer.

今天早上與我一起參加電話會議的是我們的臨時財務長 John Bittner。

Brian Tucker, our President and Chief Operating Officer is unable to join us this morning but will be back on our fourth quarter earnings call.

我們的總裁兼營運長 Brian Tucker 今早無法參加我們的會議，但將參加我們的第四季財報電話會議。

I trust by now, you've had a chance to review our third-quarter results which we announced yesterday after market close.

我相信現在您已經有機會回顧我們昨天收盤後公佈的第三季業績。

We are pleased with our performance, as we had another quarter of significant top-line and bottom-line growth.

我們對我們的業績感到滿意，因為我們又一個季度實現了顯著的營收和利潤成長。

We reported higher revenue, net cash from operations, and adjusted EBITDA while delivering tangible results against the key growth and value drivers I outlined in our last call.

我們報告了更高的收入、來自經營活動的淨現金和調整後的 EBITDA，同時針對我在上次電話會議中概述的關鍵成長和價值驅動因素取得了切實的成果。

I will focus a significant portion of my remarks today on these growth and value drivers, optimizing our fleet, improving asset utilization, driving new unit growth, particularly large horsepower and then eventually M&A.

今天，我將用大量的時間來集中討論這些成長和價值驅動因素，優化我們的車隊，提高資產利用率，推動新單位成長，特別是大馬力，然後最終是併購。

Market dynamics remain strong, and we continue to leverage our innovative compression technology, strong customer relationships, and our relatively low leverage to drive growth.

市場動態仍然強勁，我們將繼續利用創新的壓縮技術、牢固的客戶關係以及相對較低的槓桿率來推動成長。

With our recently announced awards for large horsepower compression and strong customer demand, we see significant opportunities for expansion in the coming years.

憑藉我們最近宣布的大馬力壓縮機獎項和強勁的客戶需求，我們看到了未來幾年巨大的擴張機會。

I'll start today with a quick recap of the quarter followed by some high-level remarks around the industry and what we're seeing.

今天，我將首先簡要回顧本季的情況，然後圍繞行業和我們所看到的情況發表一些高層評論。

I'll then give an update on progress against our growth and value drivers as well as discussing some new additions to the team.

然後，我將介紹我們在成長和價值驅動方面的進展，並討論團隊的一些新成員。

I'll then turn the call over to John Bittner, who will review the quarter in more detail.

然後我將把電話轉給 John Bittner，他將更詳細地回顧本季的情況。

I'll end with a few closing comments on our increased guidance for 2024 and our longer-term outlook which remains quite bullish.

最後，我想就我們提高的 2024 年指引和仍然相當樂觀的長期前景發表一些結束語。

For the third quarter, we reported a 35% increase in rental revenue year over year and a 7% increase sequentially, with the growth driven by higher rented horsepower as well as selected rate increases.

我們報告第三季的租賃收入年增 35%，季增 7%，成長主要得益於租賃馬力的增加以及部分費率的調高。

Adjusted rental gross margin percentage was 61.3% compared to 59.3% last quarter and 51.4% in Q3 of last year.

調整後的租金毛利率為 61.3%，而上季為 59.3%，去年第三季為 51.4%。

Adjusted EBITDA of $18.2 million increased 54% compared to last year's third quarter and was up approximately 11% from Q2.

調整後的 EBITDA 為 1,820 萬美元，較去年第三季成長 54%，較第二季成長約 11%。

Based on our results year to date and our favorable outlook moving into the final quarter of the year, we increased our 2024 adjusted EBITDA outlook from $64 million to $68 million to a range of $67 million to $69 million.

根據我們今年迄今的業績以及對今年最後一個季度的良好展望，我們將 2024 年調整後 EBITDA 預期從 6,400 萬美元至 6,800 萬美元上調至 6,700 萬美元至 6,900 萬美元之間。

At the midpoint of the updated range, this implies 48% growth over fiscal 2023 after posting growth of 56% last year.

以更新後的範圍的中點計算，這意味著在去年實現 56% 的成長之後，2023 財年將成長 48%。

As I noted on our last call, Natural Gas Services is a different company than it was just a few years back.

正如我在上次通話中提到的那樣，天然氣服務公司與幾年前相比已經有所不同。

We are taking advantage of supply constraints and strong customer demand to increase our growth CapEx in 2025.

我們正在利用供應限制和強勁的客戶需求來增加 2025 年的成長資本支出。

Our guidance for 2024 growth CapEx along with our newly provided 2025 growth CapEx guidance is to support new contracts we signed, and I will add is entirely for large horsepower compression investments.

我們對 2024 年增長資本支出的指導以及我們新提供的 2025 年增長資本支出指導是為了支持我們簽署的新合同，我要補充的是，這完全是為了大馬力壓縮投資。

Approximately 40% of the new horsepower will be electric motor driven.

約 40% 的新馬力將由電動馬達驅動。

With these new units, we will diversify our customer mix and reduce concentration with larger accounts.

有了這些新部門，我們將實現客戶結構多樣化，並減少對大客戶的集中度。

More importantly, these contracts will help drive horsepower growth, rental revenue, and cash flow while significantly increasing the earnings of our business.

更重要的是，這些合約將有助於推動馬力成長、租金收入和現金流，同時大幅增加我們業務的收益。

As for market conditions, I'll first look to oil.

至於市場狀況，我先關注石油。

WTI has been in the high 60s to low 70s for the last several months.

過去幾個月，WTI 價格一直徘徊在 60 多美元至 70 多美元之間。

This is a level at which we are seeing strong production and is still driving significant incremental needs for compression.

在這個層面上，我們看到了強勁的產量，並且仍然在推動壓縮方面大量增量的需求。

While we are mindful of macro factors that could bring WTI down, generally, we see a strong market for oil.

雖然我們注意到可能導致 WTI 價格下跌的宏觀因素，但總體而言，我們認為石油市場仍然強勁。

I've received numerous questions regarding the coming administration change and impact on oil prices.

我收到了許多有關即將到來的政府變革及其對油價的影響的問題。

While I believe the new administration will materially ease the regulatory burden, my personal view is that macro factors and the growth capital from oil companies are the significantly larger driver of oil prices, regardless of whether it was a democratic or republican administration.

雖然我相信新政府將大大減輕監管負擔，但我個人認為，無論是民主黨還是共和黨政府，宏觀因素和石油公司的成長資本才是推動油價上漲的更大因素。

The natural gas market is a different story.

天然氣市場則是另一番景象。

Natural gas prices remain weak, activity is muted, and this impacts demand for our small compression fleet.

天然氣價格依然疲軟，活動低迷，影響了我們小型壓縮車隊的需求。

I do believe the Trump administration will be materially more favorable for natural gas, particularly to ease L&G permitting and ultimately drive production volumes up.

我確實相信川普政府將對天然氣採取更為有利的政策，特別是放寬 L&G 許可，並最終提高產量。

This should have a positive impact on compression demand.

這應該會對壓縮需求產生正面影響。

Now, will this drive prices up?

那麼，這會導致價格上漲嗎？

I don't know.

我不知道。

We're not including that in our plans, so if it happens, it will have a positive impact relative to our current expectations.

我們的計劃中沒有包括這一點，所以如果發生這種情況，它將對我們目前的預期產生積極的影響。

I'd like to shift now to our strategy by reviewing our four growth and value drivers.

現在，我想透過回顧我們的四大成長和價值驅動因素來轉向我們的策略。

I believe we showed demonstrable progress against several of these drivers leading to our strong quarterly results, increased 2024 guidance, as well as our bullish outlook for 2025 and the years ahead.

我相信，我們在這些驅動因素方面取得了明顯進展，從而帶來了強勁的季度業績、2024 年指引的提高以及對 2025 年及未來幾年的樂觀展望。

I'll start with the first driver, fleet optimization.

我將從第一個驅動因素——車隊優化開始。

Our monthly rental revenue per average horsepower, which I calculate as rental revenue in the quarter, divided by the average utilized horsepower, divided by three to look at the metric on a monthly basis which is industry standard.

我們的每平均馬力的月租金收入（我將其計算為季度租金收入）除以平均利用馬力，再除以三，以按月計算指標，這是行業標準。

That calculation yields a metric of $26.78 per horsepowering in Q3 of this year.

經過計算，今年第三季的每馬力成本為 26.78 美元。

This is a 12% increase over the same quarter from a year ago.

這比去年同期增長了 12%。

The same metric increased meaningfully in Q3 and Q4 of 2023 with more modest increases since then.

同一指標在 2023 年第三季和第四季顯著增加，此後增幅較為溫和。

The increase in revenue per average horsepower is a function of mix shift to higher horsepower units and price increases for installed units.

平均馬力收入的增加是由於產品結構轉向更高馬力的裝置以及已安裝裝置價格的上漲。

The second driver is asset utilization which encompasses two parts: converting noncash assets into cash and increasing the utilization of our existing fleet.

第二個驅動因素是資產利用率，它包括兩部分：將非現金資產轉換為現金並提高現有車隊的使用率。

With respect to the former accounts receivable, continued to decline.

相對於前者的應收帳款，則繼續下降。

It was $42 million at the end of Q1, went to $33 million at the end of Q2, and is now less than $25 million at the end of Q3.

第一季末為 4,200 萬美元，第二季末降至 3,300 萬美元，第三季末則不到 2,500 萬美元。

This created $17.5 million in cash over two quarters or approximately $1.40 per share.

這在兩個季度內創造了 1750 萬美元的現金，約每股 1.40 美元。

We believe there are additional areas to take cash off the balance sheet, including inventory and real estate, which in turn will be used to invest in new unit growth with higher anticipated levels of return on invested capital.

我們認為，還有其他領域可以從資產負債表中抽取現金，包括庫存和房地產，這些現金反過來將用於投資新單位成長，預期投資資本回報率會更高。

We are delivering against exactly what I told you we were going to do over the coming quarters.

我們正嚴格地按照我之前所說的，在未來幾季完成我們想要完成的任務。

And I am confident that as we execute, you'll see more of our noncash assets converted into cash leading to higher returns for shareholders.

我相信，隨著我們的執行，您會看到更多的非現金資產轉化為現金，為股東帶來更高的回報。

As I noted on our last call, this is an ongoing initiative and will likely span through 2025 to fully execute.

正如我在上次電話會議上提到的，這是一項持續的計劃，可能會持續到 2025 年才能全面實施。

With respect to increasing utilization of our rental fleet, this is a key priority for us but more of a medium-term initiative as we perform technology upgrades and conversions of our utilized fleet.

關於提高我們租賃車隊的利用率，這是我們的首要任務，但更多的是一項中期計劃，因為我們正在對所使用的車隊進行技術升級和改裝。

The third driver is fleet expansion.

第三個驅動因素是車隊擴張。

We have made consistent progress on this driver with significantly more to come.

我們在這一驅動力上已取得持續進展，並且還將取得更多進展。

As of the end of Q3 2024, we have units rented totaling approximately 476,000 horsepower.

截至 2024 年第三季末，我們出租的機組總計約 476,000 匹馬力。

This is a 19% increase in horsepower rented year over year.

與去年同期相比，租賃馬力增加了 19%。

Just looking at the large horsepower units, as of Q3 2024, we had approximately 333,000 horsepower compared to approximately 253,000 horsepower at Q3 2023.

只看大馬力單位，截至 2024 年第三季度，我們的馬力約為 333,000 馬力，而 2023 年第三季度的馬力約為 253,000 馬力。

This represents a 32% increase in our large horsepower.

這意味著我們的大馬力提高了32%。

As of Q3 2024, 70% of our rented horsepower is in large units.

截至 2024 年第三季度，我們租用的馬力中有 70% 是大型單位。

Over the coming five quarters, we currently expect to increase our large horsepower rental fleet by nearly 100,000 horsepower.

未來五個季度，我們目前預計大馬力租賃車隊將增加近 10 萬馬力。

I will reiterate that these additional units are all contracted with blue chip customers typically on four- to five-year terms with pricing that we expect to yield returns above our 20% return invested capital target.

我要重申，這些額外的單位都是與藍籌客戶簽訂的合同，期限通常為四到五年，我們預計定價將產生高於我們 20% 的投資資本回報目標的回報。

We are now almost entirely focused on units that will be set beginning in 2026, once again with an exclusive focus on large horsepower units with a mix of electric motor drives and natural gas engines.

我們現在幾乎完全專注於將於 2026 年開始設置的裝置，再次專注於混合使用電動馬達驅動器和天然氣引擎的大馬力裝置。

Our fourth driver is a creative M&A.

我們的第四個驅動力是創造性的併購。

While we remain active in looking at potential deals, I want to reiterate that we will remain disciplined on the M&A front.

雖然我們仍在積極尋找潛在交易，但我想重申，我們將在併購方面保持紀律。

Any potential transaction needs to result in our company and our shareholders being in a better position than the already great position I believe we are in.

我認為，任何潛在交易都需要使我們公司和股東處於比目前更好的地位。

I would summarize that I don't feel we need to do an acquisition.

總而言之，我認為我們不需要進行收購。

We will only do a deal if it advances the strategic priorities of the business at a price that makes sense for our shareholders.

只有當交易能夠以對股東合理的價格推進業務的策略重點時，我們才會進行交易。

I would like to highlight two recent additions to the NGS team.

我想重點介紹NGS團隊最近新增的兩位成員。

Ian Eckert will join NGS as Chief Financial Officer no later than January 6, 2025.

Ian Eckert 將不遲於 2025 年 1 月 6 日加入 NGS 擔任財務長。

Ian has a broad range of financial experience including public company accounting, financial analysis, and operational improvement.

Ian 擁有廣泛的財務經驗，包括上市公司會計、財務分析和營運改善。

We are very excited to have him join our team.

我們非常高興他能加入我們的團隊。

John Bittner, who has served as our interim Chief Financial Officer since October 2023 will continue in that role until Ian start date and then we'll provide transition services thereafter.

自 2023 年 10 月以來一直擔任我們臨時財務長的 John Bittner 將繼續擔任該職位直到 Ian 開始任職，然後我們將在此之後提供過渡服務。

I would like to take this opportunity to thank John and all of his colleagues at the Accordion team who have worked with us over the past year and have been instrumental in our success.

我想藉此機會感謝約翰以及手風琴團隊的所有同事，他們在過去的一年裡與我們合作，為我們的成功做出了重要的貢獻。

Jean Holley was added as a director of NGS effective November 1 of this year.

Jean Holley 自今年 11 月 1 日起被任命為 NGS 董事。

Jean's experience with other rental equipment companies outside of the energy space is additive to our Board as well as her substantial technical experience as a former Chief Information Officer.

Jean 在能源領域以外的其他租賃設備公司的工作經驗以及她作為前資訊長的豐富技術經驗為我們的董事會增添了光彩。

I believe we have a substantial opportunity using data to improve all facets of our business.

我相信我們有很大機會利用數據來改善業務的各個方面。

I look forward to working with Jean and implementing additional strategies towards that goal.

我期待與 Jean 合作並實施更多策略來實現這一目標。

In looking at the talent that has joined NGS over the last 18 months at the management level, on Board, and in the field, I think it is a great indication of the power of our story and the opportunity that lies ahead.

回顧過去 18 個月加入 NGS 的管理層、董事會和第一線員工的人才，我認為這充分錶明了我們的故事的力量和未來的機會。

I also want to take a second to thank all of our employees who delivered these results for our shareholders as well as to thank our customers for trusting us with their business.

我還要花點時間感謝我們所有為股東創造這些績效的員工，也感謝我們的客戶對我們業務的信任。

To paraphrase our Chairman Steve Taylor, we should all put our sunglasses on as we look ahead to the future of NGS.

用我們主席史蒂夫泰勒的話來說，我們在展望NGS的未來時都應該戴上太陽眼鏡。

With that, it is now my pleasure to turn the call over to John.

現在我很高興將電話轉給約翰。

Thank you, Justin, and good morning, everyone.

謝謝你，賈斯汀，大家早安。

Let me quickly hit the financial highlights of our third quarter.

讓我快速回顧一下我們第三季的財務亮點。

Total revenue for the quarter was up sequentially by 5.7% to $40.7 million and rental revenue was up 7% to $37.4 million.

本季總營收季增 5.7% 至 4,070 萬美元，租金收入較上季成長 7% 至 3,740 萬美元。

Our total adjusted gross margin increased by $1.9 million sequentially, driven by a $2.2 million increase in rental adjusted gross margin which came in at a gross margin percentage of 61.3% for the quarter.

我們的總調整後毛利率季增 190 萬美元，其中租金調整後毛利率成長 220 萬美元，使本季毛利率達到 61.3%。

We've now realized four straight quarters with rental adjusted gross margin percentages near or above 60% which continues to boost our confidence in the margin-generating potential of our recently installed high horsepower compressor units.

我們現在已經連續四個季度實現租金調整後的毛利率接近或超過 60%，這繼續增強了我們對最近安裝的大馬力壓縮機組的利潤創造潛力的信心。

Net income for the quarter was $5 million or $0.40 per share.

本季淨收入為 500 萬美元，即每股 0.40 美元。

Our third quarter adjusted EBITDA was $18.2 million which was a $1.7 million or 11% increase sequentially.

我們第三季的調整後 EBITDA 為 1,820 萬美元，比上一季增加 170 萬美元，增幅為 11%。

At September 30, 2024, rented units represented 475,534 horsepower compared to 454,568 horsepower, as of June 30, 2024.

截至 2024 年 9 月 30 日，租賃單位的馬力為 475,534 匹馬力，而截至 2024 年 6 月 30 日，租賃單位的馬力為 454,568 匹馬力。

At the end of Q3 2024, we had 1,229 rented units compared to 1,242 rented units as of June 30, 2024.

截至 2024 年第三季末，我們擁有 1,229 個出租單位，而截至 2024 年 6 月 30 日，我們擁有 1,242 個出租單位。

Turning to the balance sheet, we ended the quarter with $163 million outstanding on our amended and restated revolving credit facility.

談到資產負債表，本季末我們修訂和重述的循環信貸額度的未償還餘額為 1.63 億美元。

In looking at the two financial covenants contained in our credit agreement, our leverage ratio was 2.25 times down from 2.51 times as of Q2.

從我們的信用協議中包含的兩個財務契約來看，我們的槓桿率從第二季的 2.51 倍下降到 2.25 倍。

Our fixed charge coverage ratio for Q3 was 2.71, meaning that we were comfortably in compliance with both of our financial covenants at the end of the third quarter.

我們第三季的固定費用覆蓋率為 2.71，這意味著我們在第三季末輕鬆履行了兩項財務契約。

Our accounts receivable balance as of September 30 was $24.8 million, a $17.5 million decrease from our high balance at the end of Q1.

截至 9 月 30 日，我們的應收帳款餘額為 2,480 萬美元，較第一季末的高餘額減少了 1,750 萬美元。

This put our DSO at around 55 days.

這使得我們的 DSO 達到約 55 天。

And while this is a significant improvement over recent levels, it remains higher than we think ultimately achievable.

雖然這比最近的水平有了顯著改善，但仍高於我們認為最終可以實現的水平。

We are pleased with the progress today but continue to believe there is opportunity to further improve this metric over the coming quarters.

我們對今天的進展感到滿意，但我們仍然相信未來幾季仍有機會進一步改善這項指標。

But that substantial improvement will likely require an investment in upgrading certain of our systems.

但這種實質的改進可能需要對升級我們的某些系統進行投資。

We generated cash flow from operations of $57 million year to date in 2024.

截至 2024 年，我們的營運活動現金流已達 5,700 萬美元。

Our CapEx for that same period totaled $57.4 million, which can be broken out to $49.7 million of new unit growth CapEx and rental upgrades, with the remaining $7.7 million being maintenance CapEx.

我們同一時期的資本支出總計 5,740 萬美元，其中 4,970 萬美元為新單位成長資本支出和租金升級，剩餘的 770 萬美元為維護資本支出。

We paid down the balance on our amended and restated credit facility by a net $1 million during the first nine months of 2024.

我們在 2024 年前 9 個月內淨償還了修訂和重述的信用額度的餘額 100 萬美元。

With that, I'll turn it back over to you, Justin, for closing remarks.

說完這些，我將把發言權交還給賈斯汀，請您做最後發言。

Thanks, John.

謝謝，約翰。

With respect to our 2024 guidance, our current outlook for 2024 adjusted EBITDA is $67 million to $69 million which marks an increase from the prior guidance.

關於我們的 2024 年指引，我們目前對 2024 年調整後 EBITDA 的預期為 6,700 萬美元至 6,900 萬美元，這比之前的指引有所增加。

We tightened the range by $2 million and the midpoint of the range moved up by $2 million.

我們將範圍縮小了 200 萬美元，並將範圍的中點上調了 200 萬美元。

We did this based on our results through the first three quarters of the year and our confidence in the margin-generating potential of our rented compressor units.

我們這樣做是基於今年前三個季度的業績以及我們對租賃壓縮機組的利潤創造潛力的信心。

We're being mindful of costs, looking to improve efficiencies, lower non-core expenses where we can, and reallocate cash flow to growth and cash flow generating initiatives.

我們專注於成本，尋求提高效率，盡可能降低非核心開支，並將現金流量重新分配給成長和現金流量產生計劃。

With that said, there are some incremental investments that are necessary as it relates to improving scalability and efficiency of our operations.

話雖如此，為了提高我們營運的可擴展性和效率，還是需要進行一些增量投資。

We also have some one-time costs related to people transitions namely our new CFO and related professional service fees as well as some potential incremental labor expenses associated with significant new unit set activity that could happen in the holiday season.

我們還有一些與人員變動相關的一次性成本，即我們的新財務長和相關的專業服務費用，以及與假期期間可能發生的重大新單位設置活動相關的一些潛在增量勞動力費用。

With respect to growth capital expenditures, we expect to spend between $65 million to $75 million in 2024.

關於成長資本支出，我們預計 2024 年將支出 6,500 萬至 7,500 萬美元。

Reflecting investments in new large horsepower compression.

反映對新型大馬力壓縮機的投資。

For 2024, we've tightened the range but kept the midpoint the same to indicate our expectation of the likely number.

對於 2024 年，我們縮小了範圍，但保持中點不變，以表明我們對可能數字的預期。

For 2025, our expected range for growth CapEx is between $90 million and $110 million.

到 2025 年，我們預計資本支出成長範圍在 9,000 萬美元至 1.1 億美元之間。

At the midpoint of both ranges, $70 million and $100 million, our growth capital would increase by more than 40%.

在兩個範圍的中間值，7,000 萬美元和 1 億美元，我們的成長資本將增加 40% 以上。

This is a good indication of our view of the markets as well as the flexibility we have due to our low relative leverage and significant increase in cash from operations.

這很好地表明了我們對市場的看法，也顯示了我們由於相對較低的槓桿率和營運現金流大幅增加而擁有的靈活性。

Our outlook for 2024 maintenance CapEx remains unchanged at $8 million to $11 million with the majority of expenditures related to our rental compression units and smaller amounts of field equipment including trucks and other equipment.

我們對 2024 年維護資本支出的預期保持不變，為 800 萬至 1100 萬美元，其中大部分支出與我們的租賃壓縮機組以及少量現場設備（包括卡車和其他設備）有關。

In terms of return on invested capital, our target remains at least 20%.

在投資資本報酬率方面，我們的目標仍然是至少20%。

In closing, we are taking advantage of the market and leveraging our relationships and position where we can.

最後，我們正在利用市場並盡可能地利用我們的關係和地位。

We are growing faster than our peers certainly the public ones, and we are well positioned to capture an increasing share of the large horsepower compression market.

我們的成長速度比同業（尤其是上市公司）快，而且我們有能力佔據大馬力壓縮市場越來越大的份額。

We are profitable and continue to generate high net cash from operating activities to reinvest in our business.

我們獲利並且繼續從經營活動中產生高淨現金來再投資於我們的業務。

Our balance sheet remains strong, and we're executing on our strategy to drive cash flow and earnings while never losing sight on increasing both near- and long-term shareholder value.

我們的資產負債表仍然強勁，我們正在執行推動現金流和獲利的策略，同時從未忽視提高短期和長期股東價值。

All in, I remain quite excited about what NGS can achieve in the coming years.

總而言之，我仍然對 NGS 在未來幾年能夠取得的成就感到非常興奮。

This concludes our prepared remarks.

我們的準備好的演講到此結束。

So I'll ask the operator to queue up for the Q&A portion of the call.

因此我會請接線生排隊等待通話的問答部分。

(Operator Instructions) Jim Rollyson, Raymond James.

（操作員指示）Jim Rollyson，Raymond James。

Hey, good morning, guys, and congratulations on another great quarter.

嘿，大家早上好，恭喜你又度過了一個美好的季度。

Maybe circling back, Mr. Bittner made a good comment about margins, right?

也許回過頭來看，比特納先生對利潤率做出了很好的評論，對吧？

You guys have been posting kind of 60%-ish-plus margins for a little while and then kind of indicating a little bit lower maybe because you weren't quite certain.

你們之前一直公佈 60% 以上的利潤率，但後來又暗示會低一點，可能是因為你們不太確定。

But as you look beyond, say, '24, we've got guidance and you continue to shuffle in more large horsepower that's on contracted terms at great returns, how are you thinking about the margin profile just beyond 2024 in the rental business?

但是，當你將目光投向更遠的未來，比如說，'24 年'，我們得到了指引，而你繼續按照合約條款投放更多馬力更大的車型，獲得豐厚的回報，你如何看待2024 年以後租賃業務的利潤率狀況？

I would say that we're certainly pleased with the with the third quarter, margin of 61.3%.

我想說，我們對第三季的利潤率 61.3% 感到非常滿意。

As we look at that prior to -- compared to some of the prior quarters, and we had some units going on standby.

正如我們所見，與之前的某些季度相比，我們有一些單位處於待命狀態。

And so that that will pull that margin up a little bit.

這樣就可以稍微提高利潤率。

I think John's comments both on this call and the previous calls that we're getting increasing levels of confidence that the margin levels that we've been seeing over, not just this past quarter.

我認為約翰在這次電話會議和之前的電話會議上的評論都表明，我們對過去一個季度一直看到的利潤水平越來越有信心。

But looking at the past four quarters, that that should be kind of the levels going forward, then as kind of throw out 2025 as we'll see some mix shift with the higher horsepower units of which that will be kind of a little bit more back end loaded in the second half of the year that we should see some shift to modestly higher margins.

但回顧過去四個季度，這應該是未來的水平，然後隨著 2025 年的到來，我們將看到一些混合變化，其中更高馬力的單位將會更多一些隨著下半年後端負載的增加，我們應該會看到利潤率略有上升。

Got it.

知道了。

That's very helpful.

這非常有幫助。

And on the utilization front, you've been kind of in this low 80s, 82% or so type of range.

在利用率方面，一直處於 80% 出頭、82% 左右的範圍。

And obviously, as you add more large horsepower, that's on longer term contract, I imagine that number should trend higher.

顯然，隨著您增加更大的馬力，這是更長期的合同，我想這個數字應該會趨於上升。

Just maybe a little color on how you're thinking about that.

或許這只是對您如何思考這個問題的一點說明。

And even if you can give us a little detail on what utilization looks like on the large versus some of the smaller horsepower stuff today, just to think about that transition over time.

即使您無法向我們詳細介紹目前大馬力機器與小馬力機器的利用率情況，也請思考一下這種隨著時間的推移而發生的轉變。

Sure.

當然。

So the -- I'll start with the second point because that I think really will drive kind of how you think about it going forward.

所以——我將從第二點開始，因為我認為這將真正影響你對未來的看法。

On the high horsepower side, we're effectively 100% utilized.

在高馬力方面，我們的利用率實際上是 100%。

There is some frictional kind of here and there when we have a unit or two come in, but those are really going back out quite quickly.

當我們有一兩個單位進來時，這裡或那裡都會發生一些摩擦，但這些摩擦很快就會消失。

And so that's really the big driver.

所以這確實是一個重要的驅動因素。

And as I've said on previous calls in our conversations, the horsepower that's not utilized, it's almost entirely in the small and the medium.

正如我在之前的通話中所說的那樣，未利用的馬力幾乎完全在小型和中型車型中。

And that's really kind of the medium and term initiative for us to drive that roughly 100,000 horsepower in those size ranges, drive that unutilized number down.

這實際上對我們來說是一種中期計劃，目的是在這些尺寸範圍內推動大約 100,000 馬力的動力，並減少未利用的數量。

Rob Brown, Lake Street Capital Market.

羅布布朗 (Rob Brown)，Lake Street 資本市場。

Good morning.

早安.

Just want to talk a little bit about the demand environment.

只想稍微談談需求環境。

It's quite strong.

它相當強。

I think you talked about electric drive coming into the mix, but maybe could you provide some further color and kind of the decision to ramp up CapEx?

我覺得您談到了電力驅動的加入，但也許您能否提供一些進一步的細節以及增加資本支出的決定？

Are you seeing customers signing contracts now for '26?

你看到客戶現在正在簽訂26年的合約嗎？

And how much visibility do you have kind of the next I guess two years out now, marketplace?

那麼您對未來兩年內的市場前景如何？

Sure.

當然。

So I think as we mentioned in the prepared remarks, really, we're -- in terms of new units that are really -- I shouldn't say new unit.

因此，我認為，正如我們在準備好的評論中提到的那樣，實際上，就新單位而言，我不應該說是新單位。

In terms of contracts, we're really looking at 2026 at this point and not saying there won't be any in the back half of 2025 incremental.

就合約而言，我們目前真正關注的是 2026 年，並不是說 2025 年下半年不會有任何增量。

But really, it's a focus on 2026 and looking with our -- some of our larger customers, they're providing demand plans of what they think they're going to need in 2026.

但實際上，我們的重點是 2026 年，而我們的一些大客戶正在提供他們認為 2026 年需要的需求計劃。

And so that's really kind of the focus of the business.

這確實是業務的重點。

And I would say at a high level, it's still a little early for that, but generally we're seeing still strong demand in terms of incremental compression that's required.

我想說，從總體上來說，現在說這個還為時過早，但總體而言，我們看到對所需的增量壓縮的需求仍然強勁。

Okay, great.

好的，太好了。

And maybe a sense on the pricing environment, obviously, if demand is strong, it's good.

也許從定價環境來看，顯然，如果需求強勁，那就是好事。

But how is pricing sort of looking year over year?

但與去年同期相比，定價情況如何？

And are you still looking at price as a driver for the kind of the fleet average pricing?

您是否仍將價格視為車隊平均定價的驅動因素？

I think on the price increases just overall in the whole market over the last five years or so have been so substantial in terms of magnitude driven by significantly increased costs of the equipment and of labor and other cost inflators that the rate of change that we're seeing certainly has come down materially.

我認為，過去五年來，整個市場的價格總體上漲幅度非常大，這是由於設備成本、勞動力成本和其他成本膨脹因素大幅增加所致，以至於我們無法預測價格的變化率。實質地下降了。

But we're still seeing, I think a positive upward bias on pricing just not at the same rate.

但我們仍然看到，我認為價格呈現正面的上行趨勢，只是速度不一樣。

We've been able to go through a significant percentage of the utilized fleet.

我們已經能夠對已利用的車隊的很大一部分進行檢查。

And capture some pricing there, which is really in conversation with customers driven by the incremental expenses that we're seeing.

並在那裡捕捉一些定價，這實際上是與客戶進行的對話，由我們看到的增量費用所驅動。

So I expect to see still kind of a positive bias on pricing but just not at the levels that have happened over the past five years or so, which just really kind of step function changes.

因此，我預計定價仍將呈現正面趨勢，但不會達到過去五年左右的水平，這只是一種階梯式的變化。

Okay.

好的。

And then I want to look back in your comments on Q4.

然後我想回顧一下您對 Q4 的評論。

I think you said there was some cost in terms of setting units that you're going to incur and maybe a little bit of cost in the quarter.

我想您說過，在設置單位方面會產生一些成本，並且在本季度可能會產生一點成本。

Could you give us a sense of what that is?

您能讓我們了解一下那是什麼嗎？

And is there any type -- what is the sort of visibility there in that cost?

是否存在任何類型——該成本的可見性是怎樣的？

The specific comment where some potential incremental costs and that really revolves around kind of time of year, holiday season, Thanksgiving to Christmas, potential weather challenges that can occur in terms of cold snaps and really just making sure that we're delivering for our customers that they need something in a particular time.

具體評論是一些潛在的增量成本，這實際上與一年中的某些時間有關，假期，從感恩節到聖誕節，可能發生的潛在天氣挑戰，例如寒流，以及確保我們為客戶提供服務他們在特定時間需要某些東西。

And if incremental labor is required for a short period of time to make sure that those units are up and running and servicing, that is an expense that we look at and say, if that is required, we want to make sure that we're delivering the service and exceeding the service levels that our customers expect.

如果在短時間內需要增加勞動力來確保這些設備正常運作和維護，那麼這就是一項費用，我們會考慮，如果這是必要的，我們要確保我們提供服務並超越客戶期望的服務水準。

And if that causes some short-term modest amount of incremental expense, that's fine.

如果這會導致短期內少量的增量費用，那也沒關係。

As I said, it's potential at this point.

正如我所說，目前這是有潛力的。

We're just kind of looking forward over the next eight weeks or so.

我們只是期待著接下來的八週左右。

And just want to make sure that we exceed our customers' expectations.

我們只是想確保超越客戶的期望。

Okay.

好的。

Got it.

知道了。

Thank you, I'll turn it over.

謝謝您，我會轉過去的。

(Operator Instructions) Selman Akyol, Stifel.

（操作員指示）Selman Akyol，Stifel。

Thank you.

謝謝。

Good morning.

早安.

Congratulations on a nice quarter.

恭喜您度過了一個愉快的季度。

Let me start with -- your customer count declined sequentially 73 to 69.

首先，你們的客戶數量從 73 個連續下降到了 69 個。

And I'm just curious is that you hydrating, raising prices and people returning or is that really just seeing the M&A going on out there?

我只是好奇，你們是在補水、提高價格並吸引人們回來，還是真的只是看到那裡正在進行併購？

It's such a small decline.

下降幅度非常小。

Overall, there's not a particular factor I would point to there, there's nothing from a conscientious strategy that we were trying to reduce customer count.

總的來說，我沒有什麼特別的因素，我們並沒有採取任何有意識的策略來減少顧客數量。

I expect that number to fluctuate around, and I don't see it as a particularly material driver for us.

我預計該數字會出現波動，並且我並不認為這對我們來說是一個特別重要的驅動因素。

Okay.

好的。

And then I may have missed this, but if you think about your CapEx for next year, how much of that's going to be dedicated towards electric?

然後我可能錯過了這一點，但如果你考慮明年的資本支出，其中有多少將用於電力？

About 40% of the horsepower and that's really looking from kind of the second half of 2024 into what is contracted in 2025.

大約 40% 的馬力，這實際上取決於 2024 年下半年到 2025 年的合約。

Got it.

知道了。

And then I guess, and I know you haven't provided guidance for 2025 yet.

然後我想，我知道您還沒有提供 2025 年的指導。

You have provided the CapEx guidance but just trying to think or see how maybe you're thinking about '25.

您已經提供了資本支出指導，但只是試著思考或了解您對『25』的看法。

You noted in your, in the comments that sort of cash flow from ops equal to your investing activities so far on a year-to-date basis.

您在評論中指出，經營活動產生的現金流量等於您年初至今的投資活動。

And I'm sort of looking at the capital you're investing next year.

我正在研究你明年投資的資金。

Maybe you get some more improvement in the balance sheet.

也許你的資產負債表會得到更多的改善。

As we think about 2025, are you viewing it as you expect to be sort of neutral from that standpoint or would you expect to be out spending cash flow and therefore having to leverage up just a bit?

當我們展望 2025 年時，您是否認為從這個角度來看它會保持中立，還是您預計它會超出現金流支出範圍，因此需要稍微增加槓桿？

I expect our leverage will go up on an absolute basis.

我預期我們的槓桿率將會絕對上升。

And the leverage levels certainly with the covenant or the ratio coming down in the third quarter, somewhat material.

而且槓桿水準肯定會隨著契約或比率在第三季下降而下降。

I expect that number will be modestly higher.

我預計該數字還會略高一些。

In terms of the -- we're going through the budgeting process right now for 2025.

就目前而言——我們正在進行 2025 年的預算編制過程。

And the key for us is just looking at kind of the set activity because that's ultimately, as we look at the calendar year, will be determinant of kind of how much EBITDA is in that year.

對我們來說，關鍵只是關注既定活動，因為這最終將決定該年的 EBITDA 是多少。

It's not going to impact how we think about exiting 2025 in terms of the kind of earnings power of the business.

從企業獲利能力的角度來看，這不會影響我們如何看待 2025 年以後的業務。

Because we know all of those units or currently expect all of that all of those units which are under contract will be set before the end of 2025.

因為我們知道所有這些單位或目前預計所有已簽訂合約的單位將在 2025 年底之前完成。

It's just working through the timing to figure out how much of that gets captured in 2025 versus kind of an exit run rate.

它只是透過時間來計算 2025 年捕獲了多少，以及退出運行率。

Got it.

知道了。

And then just last one for me, just kind of going back to your macro comments.

然後對我來說只剩下最後一個了，回到你的宏觀評論。

I know you're having discussions looking into 2026.

我知道你們正在討論 2026 年的事。

But as you think about oil, is there levels that you see out there that we'd have to hit before you'd see changes in your customers behavior?

但是當您想到石油時，您是否看到我們必須達到某個水平才能看到客戶行為發生變化？

I think there are.

我認為有。

They're kind of ranges where in conversation with customers, we see some changes.

在與顧客交談的過程中，我們看到了一些變化。

And the just to reference publicly available data, some of the different regional feds put out kind of prices at which you start to see changes in behavior, Permian Basin and what I've read, it's kind of low 60s where you're going to see new wells.

僅供參考公開數據，一些不同地區的聯邦儲備委員會公佈了價格，你開始看到行為的變化，二疊紀盆地和據我所知，價格在 60 多美元，你會看到新井。

That's kind of the marginal price, production much, much lower.

這就是邊際價格，產量要低很多。

I've seen kind of low 40s, and for some of the larger operators operating significant centralized gas lift, it's even in the high 30s in the Permian Basin.

我曾見過 40 多度的低溫，而對於一些經營大型集中式氣舉的大型業者來說，二疊紀盆地的低溫甚至達到了 30 多度。

So I wouldn't expect to see absent, drastic changes in WTI, changes of behavior on the production side.

因此，我預期 WTI 不會出現缺失或劇烈的變化，生產方面的行為也不會改變。

I think it's really on the incremental demand which at this point we're looking out to 2026.

我認為這確實取決於增量需求，目前我們展望 2026 年。

And how long term of a view if we saw a dip down to 60 in WTI, would customers start to change behavior?

如果我們看到 WTI 價格跌至 60，從長期來看，顧客的行為是否會開始改變？

I suspect they would.

我想他們會的。

The magnitude of that, a little bit difficult to know because then it gets to their -- how are they forecasting, and are they looking at a particular spot price or looking over a longer-range period of the time?

其嚴重程度有點難以知道，因為這關係到他們如何預測，他們是在關注特定的現貨價格還是關注更長遠的時間段？

I suspect it's more the latter, but I wouldn't say there wouldn't -- I expect to see -- I would expect to see some change of behavior.

我懷疑後者的可能性更大，但我不會說不會——我希望看到——我希望看到一些行為的改變。

But once again, that's really kind of forward growth as opposed to existing production.

但再說一次，與現有生產相比，這實際上是一種前瞻性的成長。

Understood.

明白了。

Thank you so much for your time.

非常感謝您抽出時間。

Tate Sullivan, The Maxim Group.

泰特‧沙利文 (Tate Sullivan)，馬克西姆集團 (The Maxim Group)。

Great.

偉大的。

Thank you.

謝謝。

Certainly, I'm looking more at the average horsepower for rented compressor, which meaningful growth and drive the results.

當然，我更關注租用壓縮機的平均馬力，這具有有意義的成長並推動了業績。

But then the total number of rented compressors down 13 quarter over quarter.

但租賃壓縮機的總數比上一季下降了 13 台。

Is there any -- I assume that's fully depreciated smaller horsepower.

有沒有——我認為這是完全折舊的較小馬力。

Is there any cost sending those units to the scrap yard or do you just offload it to someone for transportation?

將這些部件送到廢料場是否需要花費任何費用，還是您只是將其卸載給某人運輸？

Can you talk about that?

你能談談這個嗎？

Sure.

當然。

So on the unit utilization, you're correct.

因此，關於單位利用率，你是正確的。

It's not a huge number in units, but that is primarily small and almost entirely small and medium combined.

以單位數量來看，這不是一個很大的數字，但主要都是小型單位，而且幾乎全部是小型和中型單位的組合。

It's a low number.

這是一個很低的數字。

We are doing a full review in the midst of a -- a full review of particularly in the small and the medium of what -- where is there an opportunity to reduce some of those units?

我們正在進行全面審查——特別是對小型和中型企業進行全面審查——哪裡有機會減少其中一些單位？

Nothing announced at this point.

目前還沒有任何消息。

I don't expect it to be a significant percentage of the horsepower part of the fleet, but certainly looking at the units and saying as some of these smaller units coming back, what's the right economic decision around that?

我並不認為它會佔據車隊馬力部分的很大一部分，但肯定會看看這些單位，並說隨著一些較小單位的回歸，正確的經濟決策是什麼？

And some of it will be selling some of the existing unutilized units could even be scrapped.

其中一部分將被出售，一些現有的未使用的單位甚至可能被報廢。

But it's really looking at those and saying, how do we take unutilized assets even if they're small in a small percentage of the horsepower fleet?

但實際上，我們需要思考，我們如何利用未利用的資產，即使它們只佔馬力車隊的一小部分？

But put them to their highest economic use of force.

而是讓他們盡力發揮經濟力量。

Okay.

好的。

Yeah, I was just wondering if you could monetize that in any way or I assume it's fully depreciated.

是的，我只是想知道您是否可以透過任何方式將其貨幣化，或者我認為它已經完全折舊了。

And then just in terms of CapEx going out the door and looking when the units are actually deployed, is it like a quarter lag in terms of the bulk of the CapEx, in terms of sort of trying to model out how many units of larger horsepower going out the door?

然後，就資本支出而言，看看這些設備何時實際部署，就大部分資本支出而言，是否像四分之一滯後一樣，在試圖模擬出需要多少台更大馬力的設備方面出門啦？

No, the lag time is -- let me start with from the time that we're putting in and confirming an order at this point to have a unit fabricated with the third party, you're looking at a range of 9 months closer to 12.

不，滯後時間是－首先，從我們提交並確認訂單到與第三方製造一個單元的時間開始，你會看到距離交付還有 9 個月的時間。

Now the capital will get spent there a series of progress payments that we make over that period of time.

現在，我們將把資本花在那裡，作為那段時期內支付的一系列進度款。

But there's from kind of initial spend to units being completed and ready to go out in the field.

但是從最初的支出到設備的完成以及準備投入使用還有一段過程。

It's more like that kind of three-quarter lag.

這更像是那種四分之三的滯後。

Okay.

好的。

Thank you very much.

非常感謝。

Thank you.

謝謝。

And I don't see any other questions.

我沒有看到任何其他問題。

Okay.

好的。

Well, thank you, Luke and thank you to all of our shareholders and potential shareholders and those listening in for your questions and participation on the call.

好吧，謝謝你，盧克，也感謝我們所有的股東和潛在股東，以及那些在電話會議上提問和參與的人。

We sincerely appreciate your support, and we look forward to updating you on our progress in the next quarter.

我們真誠感謝您的支持，並期待在下個季度向您通報我們的進展。

Thank you.

謝謝。

Thank you very much, everyone.

非常感謝大家。

And this concludes today's conference call.

今天的電話會議到此結束。

Thank you for attending.

感謝您的參加。