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Mar 31, 2022
Nine Energy Q1 2022 Earnings Report
Nine Energy reported strong growth in Q1 2022, driven by improved activity and pricing across most service lines, surpassing revenue guidance and achieving sequential growth.
Key Takeaways
Nine Energy Service reported Q1 2022 revenues of $116.9 million, exceeding their initial guidance. The company experienced a net loss of $(6.9) million, but achieved an adjusted EBITDA of $12.2 million. Cementing revenues increased 31% quarter over quarter.
Total liquidity position of $74.6 million as of March 31, 2022.
Revenue reached $116.9 million, net loss was $(6.9) million, and adjusted EBITDA was $12.2 million.
Basic loss per share for Q1 2022 was $(0.23).
Cementing revenues increased approximately 31% quarter over quarter.
Forward Guidance
The company anticipates revenue and adjusted EBITDA to improve sequentially for Q2. The oilfield service industry remains under-supplied from both an equipment and labor perspective and they anticipate this will continue to be a catalyst for further price increases for the remainder of the year, however, this will be coupled with cost inflation.
Positive Outlook
- The outlook for the remainder of 2022 and 2023 continues to be very positive.
- Anticipate further price increases for the remainder of the year.
- Expect revenue for all of our service lines to increase for Q2.
- Anticipate revenue and adjusted EBITDA to improve sequentially for Q2.
- Well positioned with geographic and service line diversity to grow earnings with relatively low capital requirements.
Challenges Ahead
- Cost inflation will be coupled with price increases.
- The oilfield service industry remains under-supplied from both an equipment and labor perspective.
- Market activity may be affected by geopolitical and economic developments in the U.S. and globally.
Historical Earnings Impact
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Avg. Return Before/After Earnings
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