Loading...
•
Jun 30, 2020
Nine Energy Q2 2020 Earnings Report
Nine Energy reported a decrease in revenue due to reductions in demand related to the COVID-19 pandemic, resulting in a net loss and negative adjusted EBITDA.
Key Takeaways
Nine Energy reported a challenging second quarter in 2020, with a significant decrease in revenue to $52.7 million due to the COVID-19 pandemic's impact on North American operators. The company experienced a net loss of $(24.2) million and an adjusted EBITDA of $(11.0) million. Despite the downturn, Nine Energy focused on cost-cutting measures and working capital management, maintaining a strong cash balance of $88.7 million.
Revenue for the second quarter of 2020 was $52.7 million.
Net loss for the second quarter of 2020 was $(24.2) million.
Adjusted EBITDA for the second quarter of 2020 was $(11.0) million.
Cash and cash equivalents as of June 30, 2020, were $88.7 million.
Nine Energy
Nine Energy
Forward Guidance
The near-term outlook is very challenging, but Nine Energy believes that its technological innovations position it to thrive when activity recovers.
Positive Outlook
- Team continues to gain ground with the commercialization of dissolvable plugs.
- Dissolvable plugs receiving incremental trials with new customers.
- Dissolvable plugs expanding market share with current customers.
- Dissolvable plugs tool continues to perform very well.
- Technological innovations position the company to thrive when activity recovers.
Challenges Ahead
- The near-term outlook is very challenging.
- North American operators significantly cut capex.
- Operators reducing or completely suspending activity during the quarter.
- Reductions were most evident in the Permian Basin.
- Activity reductions affected revenue and profitability across service lines.