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Mar 31, 2024
Nine Energy Q1 2024 Earnings Report
Nine Energy reported flat revenue and increased gross profit despite stable rig count.
Key Takeaways
Nine Energy Service reported Q1 2024 revenues of $142.1 million, a net loss of $(8.1) million, and adjusted EBITDA of $15.0 million. The company's revenue was within its original guidance range, and it saw an increase in gross profit despite a flat US rig count.
Q1 2024 revenue was $142.1 million, within the provided guidance range.
Net loss for Q1 2024 was $(8.1) million, or $(0.24) per diluted share.
Adjusted EBITDA for Q1 2024 was $15.0 million.
Gross profit increased quarter over quarter due to reduced whitespace in coil tubing.
Forward Guidance
Nine Energy expects Q2 revenue to decrease compared to Q1 due to declining natural gas prices and pricing pressure in the cementing business.
Positive Outlook
- Medium and long-term outlook for natural gas markets remains positive.
- Maintaining footprint will be imperative to capitalize when gas prices recover.
- Business is nimble and able to capitalize quickly when market shifts.
- Service and commodity diversity is critical.
- Strategy of providing an asset-light business with forward-leaning technology and excellent service remains unchanged.
Challenges Ahead
- Natural gas prices declined to below $2.00 starting in February and continuing into Q2.
- Expect incremental activity slowdowns in natural-gas levered basins, specifically the Northeast and Haynesville.
- Cementing business will see full quarter realizations of pricing pressure in Q2.
Historical Earnings Impact
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Avg. Return Before/After Earnings
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