Nine Energy Service, Inc., one of the STACK and SCOOP operators in Oklahoma reported a $21 million net loss or 70 cents a share in third quarter 2019 revenues.
The Houston company reported total revenues of $202.3 million and said its third quarter 2019 adjusted net loss was $4.7 million or 16 cents per adjusted basic share. But net cash from operating activities was $69.4 million compared to $11.5 million in the second quarter 2019.
Revenue results were below management’s original guidance range and the results for adjusted EBITDA were within the original guidance.
Revenue results came in lower than original guidance primarily due to the sale of the Production Solutions segment and the closure of wireline operations in Canada.
“Even with the restructuring of our service offerings and geographical footprint, adjusted EBITDA fell within the range of management’s original guidance this quarter,” said Ann Fox, President and Chief Executive Officer, Nine Energy Service. “Despite market conditions weakening throughout the quarter, we were able to grow cash flow from operations by over 6x compared to Q2, increasing our current cash position significantly to $93.3 million as of September 30th. We expect our cash generation to remain strong through the remainder of the year and into 2020 as we grow our completion tool business and materially reduce total capex.”