Nine Energy reports 4Q losses of $220 million

Houston’s Nine Energy Service, Inc. reported fourth quarter losses this week totaling more than $220 million.

The announced its fourth quarter 2019 revenues were $163.4 million and adjusted EBITDA of $11.6 million. The revenues resulted in a net loss of $220.5 million or $7.51 per basic share.

For the fourth quarter 2019, adjusted net loss was $(16.8) million, or $(0.57) adjusted basic earnings per share. During the fourth quarter, the Company generated ROIC of -3%.

The Company had provided original fourth quarter 2019 revenue guidance between $150.0 and $160.0 million and adjusted EBITDA guidance between $11.0 and $15.0 million, with actual results for revenue outperforming Management’s original guidance range and results for adjusted EBITDA falling within Management’s original guidance.

“The fourth quarter was as anticipated, with revenue outperforming and adjusted EBITDA falling within Management’s original guidance range,” said Ann Fox, President and Chief Executive Officer, Nine Energy Service. “Additionally, we continued our strong working capital management into Q4, ending the year with a cash balance of $93.0 million even with interest, capex and the retention bonus associated with the Magnum acquisition during the fourth quarter.”

“As expected, we saw drilling and completion activity decline in Q4 due to holidays, weather and budget exhaustion. Market share for Nine remained stable across the majority of service lines, but we did see full quarter realizations of Q3 pricing concessions, which led to the majority of the margin compression quarter over quarter. Coiled Tubing has been the hardest hit service line from a pricing and activity perspective due to an over-supply of large diameter units coming into the market, coupled with a decrease in activity across regions.”

Source: Nine Energy