Nine Energy Q1 2022 Earnings Report
Key Takeaways
Nine Energy Service reported Q1 2022 revenues of $116.9 million, exceeding their initial guidance. The company experienced a net loss of $(6.9) million, but achieved an adjusted EBITDA of $12.2 million. Cementing revenues increased 31% quarter over quarter.
Total liquidity position of $74.6 million as of March 31, 2022.
Revenue reached $116.9 million, net loss was $(6.9) million, and adjusted EBITDA was $12.2 million.
Basic loss per share for Q1 2022 was $(0.23).
Cementing revenues increased approximately 31% quarter over quarter.
Nine Energy
Nine Energy
Forward Guidance
The company anticipates revenue and adjusted EBITDA to improve sequentially for Q2. The oilfield service industry remains under-supplied from both an equipment and labor perspective and they anticipate this will continue to be a catalyst for further price increases for the remainder of the year, however, this will be coupled with cost inflation.
Positive Outlook
- The outlook for the remainder of 2022 and 2023 continues to be very positive.
- Anticipate further price increases for the remainder of the year.
- Expect revenue for all of our service lines to increase for Q2.
- Anticipate revenue and adjusted EBITDA to improve sequentially for Q2.
- Well positioned with geographic and service line diversity to grow earnings with relatively low capital requirements.
Challenges Ahead
- Cost inflation will be coupled with price increases.
- The oilfield service industry remains under-supplied from both an equipment and labor perspective.
- Market activity may be affected by geopolitical and economic developments in the U.S. and globally.
- Ongoing COVID-19 pandemic and efforts to mitigate the spread of the virus, including logistical challenges, performance of contracts and supply chain disruptions.
- Pricing pressures, reduced sales, or reduced market share as a result of intense competition in the markets for the Company’s dissolvable plug products.