Natural Gas Services Group (NGS) rents natural gas compression equipment to oil and gas producers across the U.S. Compression is essential to hydrocarbon production — it pressurizes gas to move hydrocarbons through the production process. NGS's primary application is "gas lift," which uses high-pressure compressed gas to lift oil to the surface in shale wells. The Permian Basin accounts for 78% of rental revenues, and NGS's roughly 60 customers are E&P companies ranging from large integrated majors to regional operators. The customer base is highly concentrated: Occidental Petroleum and Devon Energy together accounted for 59% of FY25 revenues. Rental is ~95% of revenue, with the remaining revenue split between aftermarket servicing and parts sales. NGS charges a monthly rental rate per horsepower deployed, with a rental fleet of ~663,000 horsepower across 1,914 units. NGS has been shifting its fleet toward large horsepower units (over 400 HP), which now represent the majority of rented horsepower. NGS maintains all rented equipment, which is both a cost and a differentiator, as customers partially rent compression to offload maintenance complexity. The business is capital-intensive — new large HP units cost substantial sums and take 9-12 months to fabricate — but once deployed, incremental margins are high, with rental adjusted gross margins in the low-to-mid 60% range. NGS grows by adding fleet capacity only under pre-contracted, long-term customer agreements.