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Sep 30, 2022
Nine Energy Q3 2022 Earnings Report
Nine Energy reported strong Q3 2022 results, driven by price increases and increased volumes within completion tools.
Key Takeaways
Nine Energy Service reported Q3 2022 revenues of $167.4 million, net income of $14.3 million, and adjusted EBITDA of $32.6 million. The company's results exceeded original revenue guidance, representing an 18% sequential increase. The company also repurchased $13.0 million par value of bonds for $10.1 million of cash.
Q3 2022 revenue, net income and adjusted EBITDA were $167.4 million, $14.3 million and $32.6 million, respectively.
Third quarter 2022 basic earnings per share was $0.46.
The Company generated ROIC of 28.8% for the third quarter of 2022.
Total liquidity position of $88.2 million as of September 30, 2022.
Forward Guidance
The company anticipates revenue to be relatively flat sequentially for Q4, with growth returning as we enter Q1 of 2023.
Positive Outlook
- North American shale production will be critical for global supply.
- Capital discipline for both operators and oilfield service providers will continue into 2023 keeping the market tight.
- Constraints on oilfield service equipment will continue.
- Incremental rig activity moving forward should put upward pressure on pricing and drive net margin.
- Nine's geographic and service line diversity positions the company well for this next cycle.
Challenges Ahead
- The overall market has been volatile.
- There are and will continue to be numerous factors that will influence global supply and demand.
- Expect to see some seasonality impacts into Q4.
- Customers remain focused on staying within capital budgets.
Historical Earnings Impact
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Avg. Return Before/After Earnings
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