What Makes Natural Gas Services (NGS) a Unique Bet?

2 weeks ago 10

Soumya Eswaran

Mon, January 19, 2026 astatine 7:55 AM CST 3 min read

Riverwater Partners, an concern absorption company, released its “Micro Opportunities Strategy” Q4 2025 capitalist letter. A transcript of the missive tin beryllium downloaded here. Both Q4 and the afloat twelvemonth 2025 were challenging for the strategy, which struggled to lucifer the benchmark show successful Q4 and FY2025. The underweight vulnerability successful speculative areas of the marketplace led to the underperformance successful the 2nd fractional of the year. Low-quality stocks with mediocre fundamentals outperformed the marketplace successful the year. The strategy’s accent connected high-quality stocks lagged down the broader marketplace trends. Heading to 2026, the Strategy focuses connected micro-cap companies with broader income and maturation trajectories and believes that the low-quality banal marketplace rallies volition beryllium short-lived. In addition, you tin cheque the fund’s apical 5 holdings to find its champion picks for 2025.

In its fourth-quarter 2025 capitalist letter, Riverwater Partners Micro Opportunities Strategy highlighted Natural Gas Services Group, Inc. (NYSE:NGS) arsenic a caller addition. Natural Gas Services Group, Inc. (NYSE:NGS) is simply a US-based compression instrumentality provider. On January 16, 2026, Natural Gas Services Group, Inc. (NYSE:NGS) banal closed astatine $33.64 per share. One-month instrumentality of Natural Gas Services Group, Inc. (NYSE:NGS) was 2.94%, and its shares gained 20.19% of their worth implicit the past 52 weeks. Natural Gas Services Group, Inc. (NYSE:NGS) has a marketplace capitalization of $422.818 million.

Riverwater Partners Micro Opportunities Strategy stated the pursuing regarding Natural Gas Services Group, Inc. (NYSE:NGS) successful its 4th fourth 2025 capitalist letter:

"During the 4th 4th we purchased Natural Gas Services Group, Inc. (NYSE:NGS), an vigor services institution located successful Texas, chiefly successful the Permian region. NGS rents and maintains earthy state compression units utilized successful lipid and state transportation, accumulation and processing facilities. NGS is simply a unsocial vigor play due to the fact that they are mostly terms and commodity agnostic arsenic their absorption is connected volumes alternatively than being reliant connected the economics of a fixed commodity. A ample percent of their gross is nether agelong word contracts. Additionally, NGS is successful the process of optimizing their portfolio to ample horsepower (greater than 1,000HP) portion reducing their vulnerability to tiny and mean horsepower, astir 25% of existent revenue. Importantly, NGS has entree to ample horsepower compressors which is simply a captious plus successful a precise choky market. A larger horsepower fleet volition beryllium amended utilized and person a amended borderline profile. We are optimistic astir measurement growth, the optimization of their portfolio improvement and however this could amended let them to vie with the larger players."