Natural Gas Services Group, Inc. (NYSE:NGS) Q3 2023 Earnings Call Transcript

Steve Taylor: No problem.

Tim O’Toole: That is it for me for the time being. We’ll see if there if someone else has some questions. Thanks.

Steve Taylor: Okay. Thanks Tim. Good talking to you.

Tim O’Toole: Good to talk to you, by the way.

Operator: Thank you very much. And our last question is from Mr. Tate Sullivan again with Maxim Group. Go ahead, please.

Tate Sullivan: Thank you. Steve, just a quick follow-up. The guidance for ’23. It implies a slight, I think, quarter-over-quarter decrease in revenue and EBITDA, is that mainly maybe because service and maintenance, less service and maintenance revenue in 4Q or any other dynamics going on in the current quarter that could cause a quarter-over-quarter decline?

Steve Taylor: Yes. There’s probably. I imagine the service and AMS because those jumped quite a bit, a couple of million, but $1 million or so on one of the things like that. So we’ve set a lot of equipment, and that number tends to be a little higher. So any lower impact would be in that range, like you say.

Tate Sullivan: Okay. And that service and that is that larger numbers mainly related to when you deploy the larger compressors on the field to confirm. Is that correct?

Steve Taylor: Yes, exactly. That’s a lot of pass-through. You’ve got low margin because passengers typically are lower margins. So it’s a lot, there’s some freight costs in there to freight the equipment out, there’s installation costs, setup costs and stuff like that. So a lot of times, we’ll do that for the operator. If they don’t have the desire or the experience to do and we’ll just pass it through, John.

Tate Sullivan: Thank you, Steve.

Steve Taylor: Thanks Tate.

Operator: Thank you very much, and we don’t have any other questions.

Steve Taylor: Okay. Thank you, Luke. Thanks for everybody’s questions. We appreciate everybody’s support. I certainly want to thank all of our employees. They obviously are the ones that did the real lift and work on these numbers and we get to brag about them. So I want to thank all of our employees and two providers we’ve got in the field on the hard work. Thank you, everybody, for participating in our call. We look forward to updating you on our progress in the next quarter. Thank you.

Operator: Thank you, everyone. And this concludes today’s conference call. Thank you for attending.