Jay Spencer's questions to Natural Gas Services Group Inc (NGS) leadership • Q4 2024
Question
Jay Spencer from Stifel inquired about the current lead times for key components like engines, electric drives, and compressors, and asked about the expected pacing of the $95 million to $120 million growth CapEx throughout 2025.
Answer
CEO Justin Jacobs detailed that lead times remain long: ~9 months for engines, 6-9 months for compressor frames, and over 9 months for fabrication, which is the main bottleneck. He stated that 2025 CapEx spending will be weighted to the second half of the year but will be more ratable than unit deployments due to advance spending and some slippage from Q4 2024.