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Jun 30, 2022
Nine Energy Q2 2022 Earnings Report
Nine Energy reported mixed results, with revenue exceeding guidance but a net loss recorded.
Key Takeaways
Nine Energy Service reported Q2 2022 revenues of $142.3 million, exceeding their initial guidance. Despite the revenue beat, the company experienced a net loss of $(1.0) million, but achieved an adjusted EBITDA of $18.9 million.
Total liquidity position of $74.5 million as of June 30, 2022.
Revenue reached $142.3 million.
Net loss of $(1.0) million was reported.
Adjusted EBITDA was $18.9 million.
Nine Energy
Nine Energy
Forward Guidance
Nine Energy anticipates sequential improvement in revenue, adjusted EBITDA, and cash flow for Q3 2022, driven by geographic and service line diversity and opportunities for further price increases and volume growth.
Positive Outlook
- Revenue, adjusted EBITDA and cash flow to improve sequentially for Q3.
- Geographic and service line diversity positions the company well for further growth.
- Increased profitability over the last two quarters.
- Additional runway to implement net price increases within service lines.
- Opportunity to increase volumes for tools.
Challenges Ahead
- Magnitude of any potential recessionary pressures is difficult to gauge.
- Shortage of qualified labor and equipment in the industry.
- Capital equipment orders being placed are delayed up to 12 months.
- Any incremental activity added throughout the remainder of this year and into 2023 will exacerbate labor and equipment shortage.
- Potential impact of recessionary pressures on North American shale and short-cycle projects.