Natural Gas Services Group Announces Expansion of Credit Facility
Rhea-AI Summary
Natural Gas Services Group (NGS) has secured a $100 million expansion of its existing credit facility, bringing total commitments to $400 million with an additional $100 million accordion. The expanded facility, effective April 18, 2025, includes improved terms with a 50 to 75 basis point reduction in interest rates at comparable leverage levels and a more flexible leverage covenant starting mid-2026.
The enhanced financial flexibility will support NGS's ongoing fleet growth, particularly focusing on large horsepower and electric drive rental compression units in the Permian Basin. The company secured this expansion despite current market volatility and economic uncertainty, demonstrating lender confidence in their business model and future prospects.
Positive
- Secured $100 million credit facility expansion, increasing total commitments to $400 million
- Interest rate reduction of 50-75 basis points at comparable leverage levels
- More flexible leverage covenant terms starting mid-2026
- Additional capital available for fleet expansion and growth initiatives
Negative
- None.
News Market Reaction
On the day this news was published, NGS gained 2.43%, reflecting a moderate positive market reaction.
Data tracked by StockTitan Argus on the day of publication.
The increase of
Midland, Texas, April 22, 2025 (GLOBE NEWSWIRE) -- Natural Gas Services Group, Inc. (“NGS” or the “Company”), a premier provider of natural gas compression equipment, technology, and services to the energy industry, announced today it has closed on a
“We are pleased to announce the expansion and amendment of our credit facility, particularly considering recent financial market volatility and general economic uncertainty. This additional capital supports continued investment in our large horsepower and electric drive rental equipment fleet as we continue to drive organic growth and market share gains while improving our customer experience. Additionally, the amended Facility provides improved economics and terms, including a 50 to 75 basis point reduction in interest rates at comparable leverage levels and a more flexible leverage covenant beginning mid-2026.”
Mr. Jacobs continued, “On behalf of the entire Company, I want to thank our lenders, both existing and new. The amendment of our Facility, especially given markets conditions, reflects the confidence our lending partners have in our business and our future prospects. We remain focused on executing our strategic plan and driving value for all stakeholders. We look forward to reporting our first quarter 2025 results next month.”
The amendment was effective as of April 18, 2025.
About Natural Gas Services Group, Inc. (NGS)
Natural Gas NGS is a leading provider of natural gas compression equipment, technology, and services to the energy industry. The Company rents, operates and maintains natural gas compressors for oil and gas production and processing facilities. In addition, the Company designs and assembles compressor units for rental to its customers and provides aftermarket services in the form of call-out services on customer-owned equipment as well as commissioning of new units for customers. NGS is headquartered in Midland, Texas, with a fabrication facility located in Tulsa, Oklahoma, a rebuild shop located in Midland, Texas, and service facilities located in major oil and natural gas producing basins in the U.S. Additional information can be found at www.ngsgi.com.
For More Information, Contact:
Anna Delgado, Investor Relations
(432) 262-2700
FAQ
What is the new total credit facility amount for Natural Gas Services Group (NGS)?
How much will NGS save on interest rates under the new credit facility terms?
When does NGS's new flexible leverage covenant begin?
What will NGS use the expanded credit facility for?
When did the NGS credit facility amendment become effective?
