Brittany [ph]'s questions to Natural Gas Services Group Inc (NGS) leadership • Q4 2024
Question
Brittany from Maxim Group asked if Natural Gas Services Group plans to expand its Tulsa facility following the closure of its Midland site and questioned the potential margin impact of outsourcing more manufacturing to third parties.
Answer
CEO Justin Jacobs stated there are no plans to expand the Tulsa facility, which handles smaller units for the rental fleet. He clarified that using third-party fabricators for larger units is a capital cost consideration and does not directly impact rental margins, which are driven by rental rates and ongoing operating expenses.