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Dec 31, 2020
Nine Energy Q4 2020 Earnings Report
Nine Energy reported Q4 2020 results, including revenue of $62.0 million, a net loss of $(35.4) million, and adjusted EBITDA of $(13.9) million.
Key Takeaways
Nine Energy Service reported Q4 2020 revenue of $62.0 million, a net loss of $(35.4) million, and an adjusted EBITDA of $(13.9) million. The company ended the year with a cash balance of $68.9 million and an undrawn ABL.
Revenue increased by 25% quarter over quarter, reflecting activity improvements.
Net loss and adjusted EBITDA were negatively affected by pricing pressure and one-off, non-cash items.
The company grew its percentage of US stages completed from approximately 17% in 2019 to approximately 23% in 2020.
Nine ended the year with the lowest TRIR in the Company’s history of 0.30.
Forward Guidance
Nine anticipates a very challenging environment in 2021 and expects E&P capital spend will be down year over year. Q1 2021 is off to a slower start, and the company expects to generate a net loss and negative adjusted EBITDA for the quarter.
Positive Outlook
- The pace of Q1 activity and revenue will be better sequentially than Q4.
Challenges Ahead
- A very challenging environment is anticipated in 2021.
- E&P capital spend will be down year over year.
- Q1 2021 is off to a slower start as customers finalize their 2021 activity plans.
- Many completion schedules are delayed.
- The inclement weather in Texas caused significant shutdowns within all service lines.
Historical Earnings Impact
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Avg. Return Before/After Earnings
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