Natural Gas Services Group, Inc. (NGS) announced its move to a new fabrication, warehouse and office facility located in Midland, Texas. The building contains approximately 48,500 square feet of fabrication and warehouse space, plus 3,200 square feet of office spaced on approximately 9.30 acres of land. The facility will double the company’s fabrication space for rental compression equipment and enable expansion of Natural Gas’s rental fleet, according to Stephen Taylor, chairman; president and chief executive officer of the company. The company will sell its present facility.
The company also announced its third quarter and year-end fiscal results as of December 31, 2007. For the twelve months ending December 31, 2007, total revenue increased 16% or $9.8M. The increase was the result of 29% higher rental revenue and 8% greater sales revenue. For the three month period ending December 31, 2007, total revenue increased from $16.6M to $19.5 or 18% compared to the same period 2006. The increase was the result of a 27% growth in rental revenue and a 12% increase in sales revenue.
Net income for the twelve month period ending December 31, 2007 increased 62% to 12.3M compared to $7.6M for the same period 2006. The increase was mainly the result of increased operating income, a lower income tax rate, and a lower interest expense from reduced debt balances. Net income for the three months ending December 2007 increased 56% to $3.6M compared to $2.3M for the same period 2006.
Operating income for the twelve month period ending December 31, 2007 increased from $12.1M to $18.6M or 53% compared to the same quarter 2006. Growth in operating income came primarily from the appreciably higher compressor sales gross margins achieved in the comparable quarterly and year-to-date periods. For the three months ending December 2007, operating income increased from $3.5M to $5.0M or 44% compared to the same period 2006.
Natural Gas, based out of Midland Texas, is a provider of small to medium horsepower, wellhead compression equipment to the natural gas industry with a primary focus on the non-conventional gas industry, i.e., coalbed methane, gas shales and tight gas. The company manufactures, fabricates, rents and maintains natural gas compressors that enhance the production of natural gas wells. The company also has facilities in Tulsa, Oklahoma; Lewiston, Michigan; and Midland, Texas and service facilities located in major gas producing basins in the United States.
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