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Jun 30, 2024
Nine Energy Q2 2024 Earnings Report
Nine Energy reported a challenging quarter impacted by declining US rig count and low natural gas prices. The company's revenue and earnings were affected, but it maintained a strong team and asset-light business model.
Key Takeaways
Nine Energy Service reported Q2 2024 revenues of $132.4 million, a net loss of $(14.0) million, and adjusted EBITDA of $9.7 million. The results were within the company's provided revenue guidance range. The company expects Q3 revenue and profitability to be relatively flat compared with Q2.
Revenue for Q2 2024 was $132.4 million.
Net loss for Q2 2024 was $(14.0) million, or $(0.40) per diluted share and $(0.40) per basic share.
Adjusted EBITDA for Q2 2024 was $9.7 million.
Total liquidity as of June 30, 2024, was $50.8 million.
Nine Energy
Nine Energy
Forward Guidance
The rig count in Q3 has been relatively flat since the end of Q2, and activity and pricing levels are mostly stable. Because of this, the company expects Q3 revenue and profitability to be relatively flat compared with Q2.
Positive Outlook
- Oil markets have remained mostly stable.
- Positive on the medium and long-term outlook for the gas markets.
- Exposure to the gas markets provide a significant catalyst for growth if natural gas prices recover.
- Asset-light business model allows to shift quickly with the market.
- Differentiated in service and technology offerings.
Challenges Ahead
- Natural gas prices averaging below $2.15 for the first half of 2024, leading to lower activity levels and increased whitespace across all basins.
- Challenging quarter with tough market and a difficult competitive landscape.
- Cementing revenue was down slightly in Q2.
- Coiled tubing revenue was down due to whitespace in the Permian, as well as sustained lower activity levels in the Haynesville.
- Extremely difficult to predict commodity prices.