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 at this time, all participants are in listen-only mode.

早安，女士們、先生們，歡迎來到天然氣服務集團公司第三季的財報電話會議，此時所有參與者都處於只聽模式。

Operator assistance is available at any time during this conference by pressing GBP0.

會議期間，您可以隨時按 GBP0 獲得操作員協助。

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

我現在想將電話轉給安娜·德爾加多女士。

Please begin.

請開始。

Thank you, Luke and Good morning, everyone 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.

謝謝盧克，大家早上好，在我們開始之前，我想提醒大家，在本次電話會議期間，公司將做出聯邦證券法含義內的前瞻性聲明。

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.

請投資人注意，前瞻性陳述並不能保證未來業績，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 accordingly, you should not place undue reliance on forward-looking statements.

天然氣服務集團不承擔任何更新或修改任何前瞻性聲明的意圖或義務，無論是由於新資訊、未來事件或其他原因，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 30th 2024 form eight KS and in our form 10-K for the year end December 31st 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進行了描述，包括截至2024 年9 月30 日的期間的10-Q 表格、8 KS 表格和截至2023 年12月31 日的年度的10-K 表格。

These documents can be found in the investors section of our website located at www dot NGSG I dotcom.

這些文件可以在我們網站的投資者部分找到，網址為 www dot NGSG I dotcom。

Should one or more of these risks materialize or should underlying assumptions prove incorrect.

如果其中一項或多項風險成為現實，或基本假設被證明是錯誤的。

Actual results may vary materially.

實際結果可能會大不相同。

In addition, our discussion today will reference certain non-GAAP financial measures including EBITA adjusted EBITA 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 EBITA 調整後 EBITA 和調整後成長率等。

For reconciliations of these non-GAAP financial measures to the most directly comparable measures under GAAP.

用於將這些非公認會計原則財務指標與公認會計原則下最直接可比較的指標進行調整。

Please see yesterday's earnings release.

請參閱昨天的收益報告。

I will now turn the call over to Justin Jacobs.

我現在會把電話轉給賈斯汀·雅各布斯。

Our Chief Executive Officer Justin.

我們的首席執行官賈斯汀。

Thank you, Anna and Good morning.

謝謝你，安娜，早安。

I will start by introducing the team.

我將首先介紹團隊。

Joining me today on the call this morning is John Bittner, our interim Chief Financial Officer, Brian Tucker, our President and Chief Operating Officer is unable to join us this morning, but we will be back on our fourth quarter earnings call.

今天早上與我一起參加電話會議的是我們的臨時財務長約翰·比特納(John Bittner)，我們的總裁兼首席營運官布萊恩·塔克(Brian Tucker) 今天早上無法參加我們的電話會議，但我們將繼續參加第四季的財報電話會議。

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宣布的第三季業績。

We are pleased with our performance.

我們對我們的表現感到滿意。

As we had another quarter of significant top line and bottom line growth, we reported higher revenue net cash from operations and adjusted EBITA while delivering tangible results against the key growth and value drivers I outlined in our last call, 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 market dynamics remain strong and we continue to leverage our innovative compression technology, strong customer relationships and our relatively low leverage to drive growth with our recently announced awards for large horsepower compression and strong customer demand.

由於我們又一個季度實現了顯著的營收和利潤成長，我們報告了更高的營運收入淨現金和調整後的息稅折舊攤銷前利潤，同時根據我在上次電話會議中概述的關鍵成長和價值驅動因素提供了切實的成果，我將重點關注我今天的評論是關於這些成長和價值驅動因素，優化我們的機隊，提高資產利用率，推動新單位的成長，特別是大馬力，然後最終併購市場動態保持強勁，我們繼續利用我們的創新壓縮技術、強大的客戶關係和相對較低的成本利用我們最近宣布的大馬力壓縮和強勁客戶需求獎來推動成長。

We see significant opportunities for expansion in the coming years.

我們看到未來幾年的巨大擴張機會。

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，我將首先快速回顧本季的情況，然後發表一些有關行業的高層評論以及我們所看到的情況。

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，我將介紹我們的成長和價值驅動因素的最新進展，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.

然後我會將電話轉給約翰·比特納（John Bittner），他將更詳細地審查該季度。

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

最後，我將就我們增加的 2024 年指引以及我們的長期前景發表一些總結評論，長期前景對第三季度仍然相當樂觀。

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, adjusted rental gross margin percentage was 61.3% compared to 59.3% last quarter and 51.4% in Q3 of last year adjusted EBIT, 18.2 million increased 54% compared to last year's third quarter.

我們報告稱，租賃收入年增35%，環比增長7%，增長是由租賃馬力增加以及選定的利率上漲推動的，調整後的租賃毛利率為61.3%，而上季度為59.3%，上季度為51.4%去年第三季調整後息稅前利潤為1820萬，比去年第三季成長54%。

And was up approximately 11% from Q2 based on our results year-to-date and our favorable outlook.

根據我們今年迄今的業績和我們的樂觀前景，比第二季度增長了約 11%。

Moving into the final quarter of the year, we increased our 2024 adjusted ebita outlook from 64 to 68 million to a range of 67 to 69 million at the midpoint of the updated range.

進入今年最後一個季度，我們將 2024 年調整後稅前利潤預期從 64 至 6800 萬上調至更新範圍中點的 67 至 6900 萬。

This implies 48% growth over fiscal 2023 after posting growth of 56% last year.

這意味著繼去年增長 56% 後，到 2023 財年將成長 48%。

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

正如我在上次電話會議中指出的那樣，天然氣服務公司與幾年前相比是一家不同的公司。

We are taking advantage of supply constraints and strong customer demand to increase our growth CapEx in 2025 our guidance for 2024 growth CapEx along with our newly provided 2025 growth CapEx guidance is to is to support new contracts we signed and I will add is entirely for large horsepower compression investments.

我們正在利用供應限制和強勁的客戶需求來增加2025 年的增長資本支出，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，完全是針對大型企業馬力壓縮投資。

Approximately 40% of the new ho horsepower will be electric motor driven with these new units.

大約 40% 的新馬力將由這些新裝置的電動馬達驅動。

We will diversify our customer customer mix and reduce concentration with larger accounts.

我們將使我們的客戶組合多樣化，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，同時顯著增加我們的業務收益。

As for market conditions, I'll first look to oil wt I has been in the high 60s to low 70s for the last several months.

至於市場狀況，我首先會關注過去幾個月石油價格一直在 60 多歲到 70 多歲的低點。

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

在這個水準上，我們看到了強勁的生產，並且仍在推動壓縮的顯著增量需求。

While we are mindful of macro factors that could bring W-2 wt I down.

雖然我們注意到可能導致 W-2 wt I 下降的宏觀因素。

Gen generally, we see a strong market for oil.

總的來說，我們看到石油市場強勁。

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更迭及其對油價影響的問題。

While I believe the new administration will materially ease the regulatory burden.

但我相信新政府將大大減輕監管負擔。

My personal view is that macro factors and the growth capital from oil companies are the significantly larger driver of oil prices.

我個人的觀點是，宏觀因素和石油公司的成長資本是油價更大的動力。

Regardless of whether it was a Democratic or Republican administration, the natural gas market is a different story.

無論是民主黨還是共和黨政府，天然氣市場都是不同的情況。

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

天然氣價格仍然疲軟，活動減弱，這影響了我們小型壓縮機隊的需求。

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在實質上對天然氣更加有利，特別是放寬天然氣和天然氣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?

現在，這會推高價格嗎？

I don't know we're not including that in our plans.

我不知道我們是否會將其納入我們的計劃中。

So if it happens, it will have a positive impact relative to our current expectations.

因此，如果它發生，相對於我們當前的預期將會產生積極的影響。

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

我現在想透過回顧我們的四個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 leading to our strong quarterly results increased 2024 guidance as well as our bullish outlook for 2025.

我相信，我們在克服其中幾個驅動因素方面取得了明顯進展，從而導致我們強勁的季度業績、提高了 2024 年指導以及對 2025 年的樂觀前景。

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

未來幾年，我將從第一位車手車隊優化開始。

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.

我們的平均馬力每月租金收入，我計算為該季度的租金收入除以平均使用馬力再除以三，以行業標準查看每月指標。

That calculation yields a metric of $26.78 per horsepowering in Q3 of this year, this is a 12% increase over the same quarter from a year ago.

該計算得出今年第三季每馬力 26.78 美元，比去年同期成長 12%。

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

同一指標在 2023 年第三季和第四季顯著成長，但增幅較為溫和。

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

從那時起，平均馬力收入的成長是向更高馬力單位的混合轉變和已安裝單位價格上漲的函數。

The second driver is asset utilization which encompasses two parts, converting non cash assets into cash and increasing the utilization of our existing fleet with respect to the former accounts receivable, continued to decline.

第二個驅動因素是資產利用率，包括兩部分，將非現金資產轉化為現金以及增加我們現有機隊相對於原應收帳款的利用率，持續下降。

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.

第一季末為 4,200 萬美元，第二季末為 3,300 萬美元，現在不到 2,500 萬美元。

At the end of Q3, this created $17.5 million in cash over two quarters or approximately a dollar 40 per share.

截至第三季末，這兩個季度創造了 1,750 萬美元現金，即每股約 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 we are delivering against exactly what I told you.

我們相信還有其他領域可以從資產負債表中提取現金，包括庫存和房地產，這些現金反過來將用於投資新單位的增長，我們正在按照我告訴你的那樣實現更高的預期投資資本報酬率水準。

We were going to do over the coming quarters and I am confident that as we execute, you'll see more of our non cash assets converted into cash leading to higher returns for shareholders.

我們將在未來幾季這樣做，我相信，隨著我們的執行，您將看到我們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 with respect to increasing utilization of our rental fleet.

正如我在上次電話會議中指出的那樣，這是一項持續的舉措，可能會持續到 2025 年，以提高我們租賃車隊的使用率。

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.

這是我們的一個關鍵優先事項，但更多的是我們對所用機隊進行技術升級和轉換時的中期舉措。

The third driver is fleet expansion.

第三個驅動因素是機隊擴張。

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

我們在這個驅動程式上取得了持續的進展，未來還會取得更多進展。

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

截至 2024 年第三季末，我們租賃的設備總功率約為 476,000 匹馬力。

This is an, this is a 19% increase in horsepower rented year over year just looking at the large horsepower units.

光從大馬力單位來看，租賃馬力就年增了 19%。

As of Q3 2024 we had approximately 333,000 horsepower compared to approximately 253,000 horsepower at Q3 2023.

截至 2024 年第三季度，我們擁有約 333,000 匹馬力，而 2023 年第三季度約為 253,000 匹馬力。

This represents a 32% increase in our large horsepower.

這意味著我們的大馬力增加了 32%。

As of Q3 2024 70% of our rented horsepower is in large units over the coming five quarters, we currently expect to increase our large horsepower rental fleet by nearly 100,000 horsepower.

截至 2024 年第三季度，我們租賃的馬力有 70% 是大型機組，在未來五個季度中，我們目前預計將我們的大型馬力租賃車隊增加近 100,000 匹馬力。

I will reiterate that these additional units are all contracted with blue chip customers typically on 4 to 5 year terms with pricing that we expect to yield returns above our 20% return invested capital target.

我要重申的是，這些額外的單位均與藍籌客戶簽訂了通常為期 4 至 5 年的合同，定價我們預計收益率將高於我們 20% 的投資資本回報率目標。

We are now almost entirely focused on units that will be set beginning in 2026.

我們現在幾乎完全專注於將於 2026 年開始設置的單元。

Once again with an exclusive focus on large horsepower units with a mix of electric motor drives and natural gas engines.

再次專注於混合了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, while we remain active in looking at potential deals, I want to reiterate that we will remain disciplined on the M&A front.

雖然我們仍然積極尋找潛在交易，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.

任何潛在的交易都需要使我們的公司和股東處於比現有的更好的位置。

I believe we are in.

我相信我們在。

I would summarize that.

我總結一下。

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

我認為我們沒有必要進行收購。

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我們股東有意義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 團隊最近新增的兩名成員。

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

Ian Eckert 將於 2025 年 1 月 6 日前加入 NGS 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, John Bittner, who has served as our interim Chief Financial Officer since October 2023 will continue in that role until E and start date and then we'll provide transition services thereafter.

我們非常高興他加入我們的團隊，約翰·比特納(John Bittner) 自2023 年10 月起一直擔任我們的臨時首席財務官，他將繼續擔任該職位，直到E 和開始日期，然後我們將提供過渡服務。

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 John 和他在手風琴隊的所有同事，他們在過去的一年裡與我們一起工作，為我們的成功做出了重要貢獻。

Gene Gene Holly was added as a director of NGS Effective November 1st of this year, Gene Gene'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.

Gene Gene Holly 被任命為NGS 董事，自今年11 月1 日起生效，Gene Gene 在能源領域以外的其他租賃設備公司的經驗以及她作為前首席資訊長的豐富技術經驗都為我們的董事會增添了色彩。

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

我相信我們有很大的機會利用數據來改善我們業務的各個方面。

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

我期待與 Gene 合作，為實現這一目標實施更多策略，並關注過去 18 個月內加入 NGS 的船上和現場管理層面的人才，我認為這很好地表明了我們的故事和未來的機遇。

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 to paraphrase our Chairman Steve Taylor.

我還想花一點時間感謝所有為股東帶來這些成果的員工，並感謝我們的客戶信任我們的業務，用我們董事長史蒂夫·泰勒的話來說。

We should all put our sunglasses on as we look ahead to the future of NGS with that.

當我們展望 NGS 的未來時，我們都應該戴上太陽眼鏡。

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

謝謝賈斯汀，早安，大家讓我快速了解我們第三季的財務亮點，該季度總收入比上一季增長 5.7% 至 4070 萬，租金收入增長 7% 至 3740 萬。

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.

我們的調整後毛利率總額環比增加了 190 萬美元，因為租金調整後毛利率增加了 220 萬美元（以毛利率計算）。

Percentage of 61.3% for the quarter.

本季百分比為 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.

我們現在已經連續四個季度實現租金調整後毛利率接近或高於 60%，這繼續增強了我們對利潤率的信心。

Generating potential of our recently installed high horsepower compressor units.

我們最近安裝的高馬力壓縮機組的發電潛力。

That income for the quarter was $5 million or 40¢ per share.

該季度的收入為 500 萬美元，即每股 40 美分。

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

我們第三季調整後的 EBIDA 為 1,820 萬美元，增加了 170 萬美元，即 11%。

Sequentially, December at September 30th 2024 rented units represented 475 534 horsepower compared to 454 568 horsepower.

截至 2024 年 9 月 30 日，12 月租賃單位的功率為 475,534 匹馬力，而同期為 454,568 匹馬力。

As of June 30 2024.

截至 2024 年 6 月 30 日。

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 in looking at the two financial covenants contained in our credit agreement.

轉向資產負債表，根據信貸協議中包含的兩項財務契約，我們修訂和重述的循環信貸安排在本季度末有 1.63 億美元未償還。

Our leverage ratio was 2.25 times down from 2.51 times as of Q2, our fixed charge coverage ratio for Q3 was 2.71.

我們的槓桿率從第二季的 2.51 倍下降到 2.25 倍，第三季的固定費用覆蓋率為 2.71。

Meaning that we were comfortably in compliance with both of our financial covenants.

這意味著我們輕鬆地遵守了我們的兩項財務契約。

At the end of the third quarter, our accounts receivable balance as of September 30th was 24.8 million, a $17.5 million decrease from our high balance.

截至 9 月 30 日，第三季末，我們的應收帳款餘額為 2,480 萬美元，比高餘額減少了 1,750 萬美元。

At the end of Q1, this put our DSO at around 55 days.

在第一季末，我們的 DSO 約為 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，但仍然高於我們認為最終可實現的水平。

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，但仍然相信在未來幾季有機會進一步改善這一指標。

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

但這種實質的改進可能需要投資升級我們的某些系統。

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

2024 年迄今，我們的營運現金流為 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.

同期我們的資本支出總額為 5,740 萬美元，其中新單位成長資本支出和租金升級可細分為 4,970 萬美元。

With the remaining 7.7 million being maintenance CapEx, we paid down the balance on our amended and restated credit facility by a net $1 million during the first nine months of 2024.

其餘 770 萬美元用於維護資本支出，我們在 2024 年前 9 個月淨付清了修訂和重述的信貸額度餘額 100 萬美元。

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

至此，我將把它轉回賈斯汀，讓您發表結束語。

Thanks John with respect to our 2024 guidance.

感謝約翰對我們 2024 年的指導。

Our current outlook for 2024 adjusted EBITA is 67 to $69 million which marks an increase from the prior guidance.

我們目前對 2024 年調整後 EBITA 的預期為 67 至 6900 萬美元，這比之前的指導有所增加。

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，範圍的中點上移了 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.

我們正在關注成本，尋求提高效率，盡可能降低非核心支出，並將現金流重新分配給成長和現金流生成計劃。

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，一些增量投資是必要的，因為這與提高我們營運的可擴展性和效率有關。

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過渡相關的一次性成本，即我們的新財務長和相關專業服務費，以及與假期季節可能發生的重大新單位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 to 75 million in 2024.

在成長方面，我們預計 2024 年的資本支出將在 6500 至 7500 萬美元之間。

Reflecting investments in new large horsepower compression for 2024.

反映 2024 年新大馬力壓縮的投資。

We've tightened the range but kept the midpoint the same to indicate our our expectation of the likely number for 2025.

我們收緊了範圍，但保持中點不變，以表明我們對 2025 年可能數字的預期。

Our expected range for growth CapEx is between 9,100 and $10 million at the midpoint of both ranges 70 million and 100 million.

我們預計資本支出成長範圍為 9,100 至 1,000 萬美元，介於 7,000 萬至 1 億美元之間。

Our growth capital would increase by more than 40%.

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，以及由於我們的相對槓桿率較低和營運現金大幅增加而擁有的靈活性。

Our outlook for 2024 maintenance CapEx remains unchanged at 8 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 年維護資本支出的展望保持在 800 至 1,100 萬美元不變，其中大部分支出與我們的租賃壓縮設備和少量現場設備（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.

結束時。

We are taking advantage of the market and leveraging our relationships and position where we can.

我們正在充分利用市場並盡可能利用我們的關係和地位。

We are growing faster than our peers.

我們的成長速度比同業更快。

Certainly the public ones and we are well positioned to capture an increasing share of the large horsepower compression market.

當然，大眾和我們都處於有利地位，可以在馬來西亞力壓縮市場上佔據越來越大的份額。

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

我們已實現盈利，並繼續從經營活動中產生大量淨現金，用於對我們的業務進行再投資。

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

我們的資產負債表仍然強勁，我們正在執行推動現金流和收益的策略，同時永遠不會忽視增加近期和長期股東價值，所有這些我仍然對 NGS 在未來幾年能夠實現的目標感到非常興奮。

This concludes our prepared remarks.

我們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，我會要求接線員排隊等待通話的問答部分。

Ladies and gentlemen, at this time, we will conduct the question and answer session.

女士們、先生們，這個時候我們將進行問答環節。

If you would like to state a question, please press GBP7 on your phone.

如果您想提出問題，請按手機上的 GBP7。

Now you will be placed in the queue in the order received.

現在您將按照收到的順序放入隊列中。

You can press GBP7 again to remove yourself from the queue.

您可以再次按 GBP7 將自己從佇列中刪除。

You're now ready to begin.

現在您已準備好開始。

Our first question of three so far is from Jim Robison with Raymond James.

到目前為止，我們的三個問題中的第一個問題來自吉姆羅賓遜和雷蒙德詹姆斯。

Go ahead, sir.

繼續吧，先生。

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

嘿，大家早上好，祝賀又一個偉大的季度。

Maybe.

或許。

Yeah, sure.

是的，當然。

Maybe circling back, you know, Mr Bitner made a good comment about margins, right?

也許回過頭來，你知道，比特納先生對利潤率做出了很好的評論，對嗎？

You guys have been posting kind of 60 ish plus percent margins for a little while and then kind of indicating a little bit lower maybe because you weren't quite certain, 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, that great, you know, returns.

你們已經發布了 60% 左右的利潤有一段時間了，然後有點表明有點低，也許是因為你們不太確定，但當你們看到更遠的地方時，我們已經得到了指導，你們繼續洗牌更大的馬力，這是根據合約條款，偉大的，你知道的，回報。

How are you thinking about the margin profile just, you know, beyond 2024 in the rental business.

您如何看待 2024 年後租賃業務的利潤狀況？

You know, I would say that we are, we're certainly pleased with the with the third quarter quarter, margin of 61 3, you know, as we look at that prior to compared to some of the prior quarters and we had some some units going on standby.

你知道，我想說，我們當然對第三季的利潤率感到滿意，利潤率為 61 3，你知道，因為我們之前與之前的一些季度進行了比較，我們有一些單位處於待命狀態。

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

這將使利潤率略有上升。

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

你知道，我認為約翰在這次電話會議和之前的電話會議上的評論表明，我們對我們一直看到的利潤水平的信心越來越高，而不僅僅是上個季度。

But, you know, looking at the past four quarters that that should be kind of the levels going forward then as you know, kind of throw out 2025 as we'll see some mix shift with with the higher horsepower units of which, you know, 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 to modestly higher margins.

但是，你知道，看看過去的四個季度，這應該是未來的水平，正如你所知，有點排除 2025 年，因為我們將看到一些與更高馬力單位的混合變化，你知道，下半年的後端負載將會增加一些，我們應該會看到一些轉向適度更高的利潤率。

Got it.

知道了。

That's, that's very helpful.

那是，這非常有幫助。

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

在利用率方面，您知道，您一直處於 80 年代低、82% 左右的範圍內。

And obviously, as you add more large horsepower, that's on longer term contract, I imagine that number should trend higher, just maybe a little color on how you're thinking about that.

顯然，當你增加更大的馬力時，這是在長期合約上，我想這個數字應該會更高，也許只是你的想法有一點色彩。

And, and, 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.

並且，並且，即使您可以向我們提供一些關於當今大馬力設備和一些小馬力設備的利用率的一些細節，只是考慮一下隨著時間的推移的轉變。

Sure.

當然。

So the, and I'll start with the second point because that I think really will drive kind of how you think about it going forward on the high horsepower side.

所以，我將從第二點開始，因為我認為這確實會推動你如何看待高馬力方面的發展。

You know, we're effectively 100% utilized.

您知道，我們的利用率實際上是 100%。

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

當我們有一兩個單位進來時，到處都會有一些摩擦，但這些單位很快就會退出。

And so that's really the big driver.

這確實是最大的推動力。

And as I've said on, on previous calls in our conversations, you know, the the horsepower that's not utilized, it's almost entirely in the small and the medium and that's really kind of the medium and term initiative for us to, to drive that that, you know, roughly 100,000 horsepower in those size ranges, drive that unutilized number down.

正如我之前所說，在我們之前的通話中，你知道，未利用的馬力幾乎完全是小型和中型的，這確實是我們的中期和長期計劃，以驅動你知道，在這些尺寸範圍內大約有100,000 馬力，可以降低未利用的數字。

Perfect, appreciate that.

完美，欣賞。

I'll turn it back to one of those kind of questions.

我將把它轉回此類問題之一。

Thank you very much.

非常感謝。

Our next question comes from Rob Brown with Lake Street Capital Market.

我們的下一個問題來自 Lake Street Capital Market 的 Rob Brown。

Go ahead please.

請繼續。

Good morning, good morning.

早安，早安。

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

只是想談談需求環境。

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

它非常強大，我想您談到了電力驅動的加入，但是，也許您可以提供一些進一步的顏色和類型的決定來提高資本支出？

Are you, are you seeing customers signing contracts now for 26?

您是否看到客戶現在以 26 美元簽訂合約？

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

我想兩年後你對下一個的能見度有多少？

Marketplace?

市場？

Sure.

當然。

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

因此，我認為正如我們在準備部分中提到的那樣，實際上，我們所指的是新單位，我不應該說是合約方面的新單位。

You know, we're, we're really looking at 2026 at this point and not saying there won't be any, any in the in the back half of 2025 incremental, but really, it's a focus on 2026 and, you know, looking with our some of our larger customers, they're providing demand plans of, of what they think they're going to need in 2026.

你知道，我們現在確實著眼於 2026 年，並不是說 2025 年下半年不會有任何增量，但實際上，重點是 2026 年，你知道，看看我們的一些大客戶，他們正在提供他們認為2026 年所需的需求計畫。

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

所以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, you know, still strong demand in terms of incremental compression that's that's required.

我想說，從高水準來看，現在還為時過早，但總的來說，我們看到，您知道，在所需的增量壓縮方面仍然有強勁的需求。

Okay, great.

好的，太好了。

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

也許是對定價環境的感覺，顯然，如果需求強勁，那是好事。

But how is, how is pricing sort of looking year over year?

但每年的定價情況如何？

And are you, are you still looking at price as a, 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？

You know, I think on the the price increases just overall in the in the whole market over the last, you know, five years or so have been so substantial in terms of magnitude driven by, you know, significantly increased costs of, of the equipment and of labor and other other cost inflators that the right of change that we're seeing certainly has come down materially, but we're still seeing, I think a positive upward bias on pricing just not at the same rate.

你知道，我認為過去五年左右整個市場的整體價格上漲幅度如此之大，原因是成本顯著增加。看到，我認為定價的正面向上偏差只是不以同樣的速度。

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

我們已經能夠檢查已使用機隊的很大一部分。

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

並且捕獲一些定價，你知道，這實際上是在與客戶的對話中進行的，這是由我們所看到的增量費用驅動的。

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

因此，我預計定價仍會出現積極的偏差，但不會達到過去五年左右的水平，你知道，這確實是一種階躍函數變化。

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第四季度的評論。

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

我認為您說過，在設置單位方面您將產生一些成本，也許本季會產生一些成本。

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 you know, is there any, any type, you know what's, what is the sort of visibility there in that cost?

你知道，有沒有任何類型，你知道是什麼，該成本的可見度是什麼？

You know, the specific comment where some potential incremental costs and that really revolves around kind of time of year, you know, 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.

你知道，具體的評論是一些潛在的增量成本，這實際上是圍繞一年中的某個時間，你知道，假期，感恩節到聖誕節，寒流可能發生的潛在天氣挑戰，並且實際上只是確保我們為我們的客戶提供他們在特定時間所需的東西。

And if you know, 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.

如果您知道，如果需要在短時間內增加勞動力來確保這些設備正常運作和維修，那麼我們會考慮並說如果需要的話，我們希望確保我們正在提供服務並超越客戶期望的服務水準。

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

如果這會導致一些短期適度的增量支出，那也沒關係。

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

正如我所說，目前它是有潛力的。

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

我們只是期待接下來的八週左右。

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

只是想確保我們超越客戶的期望。

Okay.

好的。

Got it.

知道了。

Thank you.

謝謝。

I'll.

患病的。

Turn it.

轉動它。

Over.

超過。

Thank you very much.

非常感謝。

And again, if you have any questions, please press GBP7.

再次強調，如果您有任何疑問，請按 GBP7。

Our next question comes from Salman AOK with Stifel.

我們的下一個問題來自 Salman AOK 和 Stifel。

Go ahead, please.

請繼續。

Thank you.

謝謝。

Good morning.

早安.

Congratulations on a nice quarter.

恭喜您度過了一個美好的季度。

Thank you.

謝謝。

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

讓我從您開始，您的客戶數量連續下降 73 至 69。

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?

我只是很好奇，你們是在推動價格上漲和人們回歸，還是真的只是看到那裡正在進行的併購？

It's such a small decline.

下降幅度這麼小。

Kind of 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，我沒有特別指出的因素，我們試圖減少客戶數量，這並不是出於認真的策略。

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

我預計這個數字會波動，而且我不認為它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 the, how many, 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、多少、多少將專門用於電力？

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，這實際上是從 2024 年下半年到 2025 年簽訂的合約。

Got it.

知道了。

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

然後我猜，我知道你們還沒有提供 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 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.

您已經提供了資本支出指導，但只是試圖思考或看看您可能如何考慮您在評論中提到的 25，來自營運的現金流量等於您迄今為止的投資活動。

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

我正在考慮你們明年要投資的資本。

Maybe you get some more improvement in the balance sheet as we think about 2025.

當我們考慮 2025 年時，資產負債表可能會得到更多改善。

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 you know, leverage up just a bit.

從這個角度來看，您是否認為它是中立的，或者您是否希望支出現金流，因此您必須知道，稍微提高槓桿率。

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

我預期我們的槓桿率將絕對上升。

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

槓桿水準肯定會隨著第三季的契約或比率下降而有所下降。

I expect that number will be modestly higher.

我預計這個數字會略高一些。

You know, in, in terms of, you know, the the we're going through the budgeting process right now for 2025.

你知道，就我們現在正在製定的 2025 年預算流程而言。

And you know, 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 Ebida is in that year.

你知道，對我們來說，關鍵只是專注於固定活動的類型，因為最終，當我們查看日曆年時，這將決定當年的埃比達 (Ebida) 金額。

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

這不會影響我們對 2025 年退出時企業獲利能力的看法。

Because we know all of those units are currently expect all of that.

因為我們知道所有這些單位目前都期望這一切。

All of those units which are under contract will be set before the end of 2025.

所有合約期間的單位將在 2025 年底前完成。

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.

它只是透過時間安排來計算 2025 年能捕獲多少資金，而不是退出運行率。

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

明白了，然後是我的最後一個，只是回到你的宏觀評論。

And I know you're having discussions looking into 2026.

我知道你們正在討論 2026 年的情況。

But if you think about oil, what, you know, is there levels that you see out there that would have, we'd have to hit before you'd see changes in your customers behavior.

但如果你想想石油，你知道，在你看到客戶行為改變之前，你所看到的水平是多少，我們必須達到這個水平。

You know, I think there are, they're kind of ranges where in, in conversation with customers, we see some see some changes and you know, the just to reference publicly available data, you know, some of the different regional feds put out kind of prices at which you start to see changes in behavior, you know, permanent basin and what I've read, it's kind of low 60s where you're going to see new wells.

你知道，我認為有一些範圍，在與客戶的對話中，我們看到一些變化，你知道，只是參考公開數據，你知道，一些不同地區的美聯儲提出在這種價格下，你開始看到行為的變化，你知道，永久盆地和我所讀到的，在60 多歲的低位，你會看到新井。

You know, that's kind of the, the marginal price, you know, production much, much lower, you know, I've, I've seen kind of low 40s, and for, for some of the larger operators operating significant centralized gas lift, it's even in the high 30s in the Permian Basin.

你知道，這就是邊際價格，你知道，產量要低得多，你知道，我已經看到了 40 多美元，對於一些經營大量集中式天然氣的大型運營商來說升力，二疊紀盆地的溫度甚至高達30 多度。

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

所以我不希望看到，你知道，沒有，你知道，生產方面的行為改變。

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

我認為這實際上是基於增量需求，目前我們正在展望 2026 年。

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

你知道，從長遠來看，如果我們看到重量下降到 60，你知道，客戶會開始改變行為嗎？

I suspect they would, you know, the magnitude of that, you know, a little bit difficult to know because then it gets to their, you know, how are they forecasting?

我懷疑他們會，你知道，這件事的嚴重程度，你知道，有點難知道，因為這會影響到他們，你知道，他們如何預測？

And are they looking at a particular spot price or looking over a longer range period of the time?

他們是專注於特定的現貨價格還是專注於更長的時間範圍？

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

我懷疑更多的是後者，但我不會說不會，我希望看到，我希望看到一些行為的改變，但再一次，這確實是一種向前的增長，而不是現有的生產。

Understood.

明白了。

Thank you so much for your time.

非常感謝您抽出時間。

Thank you.

謝謝。

And our last question comes from Tate Sullivan with the Maxim group.

我們的最後一個問題來自 Maxim 團隊的 Tate Sullivan。

Go ahead, please.

請繼續。

Great.

偉大的。

Thank you.

謝謝。

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

當然，我更專注於租賃壓縮機的平均馬力，這有意義的成長並推動結果。

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

但隨後租賃壓縮機的總數較上月下降了 13 台。

Is there any, I assume that's fully depreciated smaller horsepower?

有沒有，我認為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?

將這些設備運送到廢料場是否需要任何費用，或者您只是將其卸載給某人運輸？

Can you, can you talk about that?

你能，你能談談嗎？

Sure.

當然。

So on the on the unit utilization, you're correct there.

所以關於單位利用率，你是對的。

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

這個，這個，單位數量不是很大，但主要是小型的，而且幾乎完全是小型和中型的組合。

It, it's a low number.

它，這是一個低數字。

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

我們正在進行全面審查，特別是在中小型企業的全面審查中，你知道，哪裡有機會減少其中一些單位？

Nothing announced at this point.

目前還沒有宣布任何消息。

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

我不認為它會佔艦隊馬力部分的很大比例，但肯定會關注這些單位，並說隨著其中一些較小的單位回來，你知道，圍繞這個問題正確的經濟決策是什麼？

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

其中一些將被出售，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, in a small percentage of the horsepower fleet?

但它實際上是在審視這些並說，我們如何利用未利用的資產，即使它們在馬力車隊中只佔很小的比例？

But put them to their highest economic use of force?

但要讓他們最大限度地經濟使用武力嗎？

Okay.

好的。

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

是的，我只是想知道你是否可以以任何方式將其貨幣化，或者我假設它已經完全折舊，然後就資本支出而言，看看這些單元實際部署的時間，是否有四分之一的滯後資本支出的大部分是試圖模擬有多少單位的較大馬力被淘汰。

No, the lag time is let.

不，滯後時間是允許的。

Me.

我。

Let me start with, you know, 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 know, you're looking at a range of, you know, nine months closer to 12.

讓我開始，你知道，從我們提交並確認訂單到此時與第三方一起製造一個單元，你知道，你正在考慮一系列，你知道，九個距離12月又近了。

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

現在，資金將用於我們在那段時間支付的一系列進度付款。

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

但從最初的支出到單位的完成並準備投入使用。

It's more like that, you know, kind of three quarter lag.

更像是這樣，你知道，有點四分之三的延遲。

Okay.

好的。

Okay.

好的。

Thank you.

謝謝。

Thank you very.

非常感謝。

Much.

很多。

Thank you.

謝謝。

And we, I don't see any other questions.

我們，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, your questions and participation on the call.

好吧，謝謝你，盧克，感謝我們所有的股東和潛在股東以及那些傾聽你的問題和參與電話會議的人。

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

我們衷心感謝您的支持，並期待向您通報下一季的最新進展。

Thank you.

謝謝。

Thank you very much, everyone and this is today's conference call.

非常感謝大家，這是今天的電話會議。

Thank you for attending.

感謝您的出席。