Nine Energy Service Announces Positive Third Quarter 2024 Results

by · The Markets Daily

Nine Energy Service, Inc., a leading oilfield services company listed on the New York Stock Exchange under the ticker symbol NINE, recently released its financial results for the third quarter of 2024. The company reported revenues of $138.2 million, a net loss of $(10.1) million, equating to $(0.26) per diluted share and $(0.26) per basic share, and an adjusted EBITDA of $14.3 million for the quarter.

Despite a decline in the average US rig count, Nine Energy Service managed to increase its revenue by approximately 4% quarter over quarter, surpassing the original revenue guidance range. The company attributed this growth to market share gains in its cementing division, resulting in a 12% increase in cementing revenue compared to the second quarter.

Ann Fox, President and CEO of Nine Energy Service, noted that while revenue across other service lines remained relatively stable, increased utilization, international tool sales, and cost-saving initiatives contributed to enhanced profitability in the quarter. She acknowledged challenges in the natural gas market due to fluctuating commodity prices and lower activity levels in certain basins.

Looking ahead, Nine Energy Service anticipates a decrease in revenue and profitability in the fourth quarter compared to the third quarter due to budget exhaustion, weather impacts, and reduced international tool sales. Despite these near-term challenges, the company remains optimistic about the demand outlook for oil and natural gas.

Operational Performance and Financial Position

During the third quarter, Nine Energy Service reported revenues of $138.2 million, with a gross profit of $16.1 million and an adjusted gross profit of $24.7 million. The company generated a return on invested capital (ROIC) of (14.7)% and an adjusted ROIC of 3.9% for the quarter.

In terms of liquidity and capital expenditures, the company reported net cash used in operating activities of $(5.9) million, with capital expenditures totaling $3.6 million. As of September 30, 2024, Nine Energy Service had cash and cash equivalents of $15.7 million and total liquidity of $43.3 million, including availability under its revolving credit facility.

Nine Energy Service also provided a reconciliation of adjusted EBITDA, adjusted ROIC, adjusted gross profit, and excess cash flow, highlighting key financial metrics to evaluate the company’s performance and capital allocation decisions.

The company will be hosting a conference call on November 1, 2024, to discuss its third-quarter results further. Participants can join the call to gain insights into Nine Energy Service’s operational strategies, market outlook, and financial performance.

About Nine Energy Service

Nine Energy Service is a prominent oilfield services provider offering completion solutions in North America and globally. With a focus on personalized solutions and cutting-edge technology, the company differentiates itself through superior service quality and operational efficiency.

For more information on Nine Energy Service, interested individuals can visit the company’s official website.

Forward-Looking Statements

The financial results and forward-looking statements provided by Nine Energy Service are subject to inherent risks and uncertainties, as detailed in the company’s filings with the Securities and Exchange Commission. These statements are based on current expectations and may differ due to various factors affecting the oil and gas industry.

Investor Contact Information

Heather Schmidt, Vice President of Strategic Development, Investor Relations, and Marketing, can be reached at (281) 730-5113 or via email at investors@nineenergyservice.com.

The above financial information and operational updates reflect Nine Energy Service’s performance in the third quarter of 2024 and its strategic positioning in the competitive oilfield services sector. The company’s proactive measures and focus on technological advancements aim to drive sustained growth and operational excellence in the evolving energy market.

This article was generated by an automated content engine and was reviewed by a human editor prior to publication. For additional information, read Nine Energy Service’s 8K filing here.

About Nine Energy Service

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Nine Energy Service, Inc operates as an onshore completion services provider that targets unconventional oil and gas resource development in North American basins and internationally. It offers cementing services, including blending high-grade cement and water with various solid and liquid additives to create a cement slurry that is pumped between the casing and the wellbore of the well.

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