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Dec 31, 2021
Nine Energy Q4 2021 Earnings Report
Nine Energy reported Q4 2021 results with revenue above guidance, driven by strong performances in cementing and completion tools.
Key Takeaways
Nine Energy Service reported Q4 2021 revenues of $105.1 million, a net loss of $(15.7) million, and adjusted EBITDA of $4.6 million. The company outperformed its Q4 revenue guidance, driven by strong performances in both cementing and completion tools. They anticipate North American capital spending will increase by at least 20% in 2022.
Total liquidity position of $64.7 million as of December 31, 2021
Revenue for the fourth quarter of 2021 was $105.1 million
Net loss for the fourth quarter of 2021 was $(15.7) million
Adjusted EBITDA for the fourth quarter of 2021 was $4.6 million
Forward Guidance
Nine Energy anticipates revenue and earnings to improve each quarter throughout 2022. They anticipate North American capital spending will increase by at least 20% in 2022.
Positive Outlook
- Expect Q1 will be better than Q4 with sequential revenue increases
- Anticipate revenue and earnings to improve each quarter throughout 2022
- Service line diversity
- Forward-leaning technology
- Geographic diversity, and balanced commodity exposure
Challenges Ahead
- I do not see any near-term solution for the labor shortages
- Customers try to increase activity
- This should move pricing leverage back to the service providers
- Difficult market conditions in 2021
- Net cash used in operating activities of $(40.4) million
Historical Earnings Impact
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Avg. Return Before/After Earnings
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