Natural Gas Services Group, Inc. (NGS) is a leading provider of gas compression equipment and services to the natural gas industry. Their proprietary reciprocating compressor product line, CiP (Cylinders in Plane), is a unique and efficient, small horsepower design utilized in their rental fleet and sold to compressor packagers and distributors throughout North America.

The company, based in Midland, Texas, designs, fabricates, sells, installs and services technologically-advanced and patented industrial flare and ignition systems through their Flare King product line for use in gas plants and both onshore and offshore oil & natural gas productions facilities.

Natural Gas reported record results in October 2007 for their fiscal year 2006. Revenue increased 27% to $62.7M and net income after taxes grew 71% to $7.6M. The company continued to grow their rental compressor fleet and had 1,111 units at the end of 2006; an addition of 246 net units. This growth in fleet was in addition to the 466 units added over the prior two years.

In March 2006, the company completed the sale of 2,895,500 shares of common stock in a public offering and received net proceeds of just over $47M. From those proceeds, the company retired $5M of long-term debt and used the balance, in addition to internally generated cash flow, to add a compressor to the rental fleet. The company spent $27.7M in 2006 on capital expenditures, with 94% going directly to rental compression and associated rental service additions such as service trucks and tools.

In December 2007, Natural Gas announced it closed the acquisition of a fabrication facility located in Midland, Texas. The purchase of the property, which cost $1.875M, was financed with available cash.

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