Natural Gas Services : 2021 Investor Presentation

2021

Presentation

Natural Gas Services Group, Inc.

SEPTEMBER 2021

FORWARD LOOKING STATEMENTS

This presentation contains certain "forward-looking statements," within the meaning of Section 27A of the Securities Act of 1933, and information pertaining to us, our industry and the oil and natural gas industry that is based on the beliefs of our management, as well as assumptions made by and information currently available to our management. All statements, other than statements of historical facts contained in this presentation, including statements regarding our future financial position, growth strategy, budgets, projected costs, plans and objectives of management for future operations, are forward-looking statements. We use the words "may," "will," "expect," "anticipate," "estimate," "believe," "continue," "intend," "plan," "budget" and other similar words to identify forward-looking statements. You should read statements that contain these words carefully and should not place undue reliance on these statements because they discuss future expectations, contain projections of results of operations or of our financial condition and/or state other "forward-looking" information. We do not undertake any obligation to update or revise publicly any forward- looking statements. Although we believe our expectations reflected in these forward-looking statements are based on reasonable assumptions, no assurance can be given that these expectations or assumptions will prove to have been correct. Important factors that could cause actual results to differ materially from the expectations reflected in the forward-looking statements include, but are not limited to, the following factors:

• significant economic disruptions and adverse consequences resulting from current and possible long-term effects of the COVID-19 global pandemic;
• conditions in the oil and natural gas industry, including the supply and demand for natural gas and wide fluctuations and possible prolonged depression in the prices of oil and natural gas;
• economic challenges presently faced by our customers in the oil and natural gas business that, in turn, could adversely affect our sales, rentals and collectability of our accounts receivable;
• regulation or prohibition of horizontal well completion techniques;
• competition among the various providers of compression services and products;
• changes in safety, health and environmental regulations;
• changes in economic or political conditions in the markets in which we operate;
• failure of our customers to continue to rent equipment after expiration of the primary rental term;
• the inherent risks associated with our operations, such as equipment defects, malfunctions and natural disasters;
• our inability to comply with covenants in our debt agreements and the decreased financial flexibility associated with our debt;
• future capital requirements and availability of financing;
• fabrication and manufacturing costs;
• general economic conditions;
• acts of terrorism; and
• fluctuations in interest rates.

In addition to the risks noted above, you should review the factors and risks we describe in our Annual Report on Form 10-K for the year ended December 31, 2020 and our other reports filed from time to time with the SEC. All forward-looking statements attributable to us are expressly qualified in their entirety by this cautionary statement.

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CORPORATE OVERVIEW

2021

CORPORATE OVERVIEW

• Headquartered in Midland, TX
• Employee Headcount: 237
• Current Fleet: 2,275 compressors
• Founded in 1998/IPO in 2002
• Listed on NYSE in 2008
• Only rental company with proprietary compressor brand (CiP)
• Only major rental company with In- House fabrication capability.

Natural Gas Services Group, Inc. is a leading provider of small, medium and large horsepower compression equipment to the oil and natural gas industry. We focus primarily on the nonconventional natural gas and oil production business in the United States. We manufacture, fabricate and rent natural gas compressors that enhance the production of oil and natural gas wells and provide maintenance services for those compressors.

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CORPORATE OVERVIEW

• NGS focuses primarily on non-conventional natural gas and oil production business in the United States (such as coal bed methane, gas shale, tight gas and oil shales). According to data from the Energy Information Administration ("EIA"), this has been the single largest and fastest growing segment of U.S. hydrocarbon production over the past decade.
• NGS manufactures, fabricates and rents natural gas compressors that enhance the production of oil and natural gas wells and provides maintenance services for those compressors.
• NGS sells custom fabricated natural gas compressors to meet customer specifications dictated by well pressures, production characteristics and particular applications; including traditional oil and gas and energy transition products.
• NGS designs and manufactures flare systems for oil and gas processing and production facilities.
• The vast majority of our rental operations are in non-conventional natural gas and oil regions, which typically have lower initial reservoir pressures, lower production pressures and/or faster well decline rates. These areas usually require compression to be installed relatively sooner and with greater frequency.

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KEY STRATEGIC INITIATIVES

Strategic Move Into High Horsepower Market

• Significant opportunity to penetrate market demand for high horsepower compression
• Long-term,premium rental rates
• 90%+ utilization for large horsepower compression
• Significant capital commitment supported by long-term contracts with credit- worthy customers providing solid long-term returns on investment

Share Repurchase

• Authorized the repurchase of up to $10 million of outstanding shares of common stock
• Commitment by Board of Directors underpins confidence in long-term value

Industry-Leading Financial Strength

• Self-funded$200+ million in capex over the past 10 years
• No debt with cash balance of approximately $24.4 million (September 30, 2021)

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