Natural Gas Services Group, Inc. (NYSE:NGS) Q4 2022 Earnings Call Transcript

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Steve Taylor: Yes. And the returns we are looking at, you’re in the right ballpark. We’re looking at five to six years, depending on the equipment, five- or six-year cash-on-cash paybacks. Some are a little higher but none of them are below the 15% to 20% range. Some of them are up into the 20% to 25% range. So the returns look good. From a EBITDA standpoint, again, we start to in the line of giving guidance or projections, but I think the — you’ll see EBITDA returns in line with what that — the five- to six-year payout shows up, too. So if you can look at that CapEx, I think you’ll be able to take that CapEx number and look at that five- to six-year payback and be pretty close to what we think EBITDA is going to be.

Hale Hoak: All right. And I guess, getting back to your transition, there’s obviously a CEO search going on, but there’s also some new directors being proposed. It seems probable — possible to probable to me that you have a different looking board in the next three months. And it seems fair and reasonable to me that those potential new directors should have some input on who your new CEO is. Are you willing to stick around for three to six more months and let the board vote occur before a new CEO is committed by potentially a smaller and older board or the existing board?

Steve Taylor: Well, starting from the same perspective that I step back in when John needed to step down. I’ve got a — as I remind people a couple of times, I’ve got a pretty good stake in the Company on over 5% myself. So, I’m intimately and intricately involved in how the Company operates and the returns given and certainly the value derived through share price. So, I serve at the pleasure of the Board, and I would serve longer at the pleasure of the Board if need be. I’m not going to my agreement ends June 30. And at that point, for the agreement, the CEO and President duties transition, they could transition earlier, too, depending on what the search finds, but that would be the — the agreement shows that as the last date.

But if the Company and the Board deemed it necessary, I’m not — I’m not disconnecting my phone on July 1. This is — obviously, I’ve been with the Company a long time. We feel like we built a pretty solid foundation of stuff and it looks like we’re at pretty good jump-off point on some of the stuff. So no, I serve at the pleasure of the Board, either moving out or standing in whatever the circumstance may be that the Board determines its best.

Hale Hoak: Well, the Board serves at the pleasure of the shareholders, and you’re an extremely large shareholder and our firm is your largest shareholder. And I would love to see you stick around and let the new board shake out. I mean it’s quite possible or probable that there’s two new directors at it. And I think that those people should have input on the CEO. So that’s important to me. And if the current Board tries to ram through a new CEO before the annual meeting, I’d be extremely disappointed.

Steve Taylor: Yes. Well, and I appreciate your comments and your confidence, as you say, being a large shareholder myself, my duty would be addressed shareholder concerns and enhance shareholder value just like just like you’re wanting as being the largest shareholder and certainly as Justin would like to. So again, whatever — whoever ends up on the board and — and I think the present Board has got nominations to come and whoever else might be added to it. Certainly, I’m all I’m all for whatever we need to do to enhance the value of the Company and contribute to the growth going forward.

Hale Hoak: Well, I appreciate your flexibility as always, and thanks for your hard work.

Steve Taylor: Okay, thanks Hale.

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