NGS's Stock Price Is Unlikely To Move Up Soon
Natural Gas Services Group (NGS) provides compression equipment to the natural gas producers operating primarily in the U.S. non-conventional shales. I think the current softness in natural gas price and upstream producers' lower capex budget in 2019 can adversely affect the company's margin at the operating level. Its revenues, however, can increase following natural gas production growth. The opposing forces can keep its stock price range-bound in the short-term.
The energy mix is likely to shift towards more natural gas production, as studies from