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Jun 30, 2023
Nine Energy Q2 2023 Earnings Report
Nine Energy's Q2 2023 results were reported, with revenue within guidance and a net loss recorded.
Key Takeaways
Nine Energy Service reported Q2 2023 revenues of $161.4 million, a net loss of $(2.5) million, and adjusted EBITDA of $21.7 million. The results were within the company's original revenue guidance, but activity declines and pricing pressure are expected to impact Q3 results negatively.
Q2 revenue was $161.4 million, within the original guidance range.
Net loss for the quarter was $(2.5) million, or $(0.08) per diluted share.
Adjusted EBITDA was $21.7 million.
The company is cautiously optimistic that the rig count will reach a bottom in Q3 2023.
Forward Guidance
Nine Energy Service anticipates lower activity levels and continued pricing pressure from customers in Q3, leading to a sequential decline in revenue and earnings compared to Q2.
Positive Outlook
- Cautiously optimistic that the rig count will bottom in Q3.
- Potential for rigs to be added back into the market starting in early 2024.
- Strong team with long tenure to manage volatility.
- Focus on developing new technology.
- Pursuing increased market share in North American land and international markets.
Challenges Ahead
- Activity levels in Q3 are expected to be down.
- Continued pricing pressure from customers.
- Expect Q3 revenue and earnings to be down sequentially to Q2.
- Cementing operations impacted by rig count decline in Haynesville and Eagle Ford.
Historical Earnings Impact
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Avg. Return Before/After Earnings
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