Financial Data and Key Metrics Changes - Revenue for Q1 2025 was $150.5 million, an increase of approximately 6% compared to Q4 2024, and within the guidance range of $146 million to $152 million [6] - Adjusted EBITDA for the quarter was $16.5 million, reflecting a 17% increase quarter over quarter, with adjusted EBITDA margins at approximately 26% [6][7] - Cash and cash equivalents as of March 31, 2025, were $17.3 million, with total liquidity of $53.8 million [11][12] Business Line Data and Key Metrics Changes - Cementing revenue increased by approximately 4% to $57.2 million, with jobs completed rising by approximately 11% [12][13] - Wireline revenue grew by approximately 7% to $29.6 million, with 7,713 wireline stages completed, an increase of approximately 15% [13] - Coiled tubing revenue increased by approximately 16% to $29.9 million, driven by a 36% increase in coiled tubing days [14] Market Data and Key Metrics Changes - The U.S. rig count remained flat in Q1 2025, yet the company achieved revenue growth across all service lines [7] - Pricing across service lines was mostly stable, except for wireline operations in the Northeast, which experienced lower stage pricing due to previous bidding processes [8][9] Company Strategy and Development Direction - The company is focused on market share gains and cost reductions, with a strong emphasis on technology development and maintaining service quality [6][19] - The recent appointment of Joey Hall to the Board of Directors is aimed at enhancing industry expertise within the company [20] Management's Comments on Operating Environment and Future Outlook - Management expressed uncertainty regarding the impact of declining oil prices and increased costs due to tariffs on future activity levels [16][18] - The company anticipates Q2 revenue to decline compared to Q1, projecting between $138 million and $148 million [19] - Management remains optimistic about the long-term outlook for natural gas and its potential positive impact on earnings [17] Other Important Information - The company refinanced its ABL revolving credit facility, increasing liquidity and financial flexibility [10][11] - The average blended revenue per cementing job decreased by approximately 6%, while the average blended revenue per wireline stage decreased by approximately 7% [12][13] Q&A Session Summary Question: Pricing pressures and impacted business lines - Management indicated that pricing pressure is primarily seen in the cementing division, particularly in West Texas, due to tariff impacts and commodity price evaluations [24][25] Question: Oil price guidance and its implications - Management stated it is too early to provide specific guidance on oil prices, emphasizing the importance of market evaluations by customers [31][32] Question: Ability to pass on tariff costs to customers - Management confirmed plans to pass on tariff costs to customers, as the service sector cannot absorb these increases [33][34] Question: Outlook for natural gas markets - Management expressed excitement about the natural gas market, particularly in Haynesville, but confirmed no plans to relocate equipment at this time [36][37] Question: International tool sales and opportunities - Management reported positive performance in international tool sales and highlighted ongoing development of completion tools to meet stringent international requirements [38][39]

Financial Data and Key Metrics Changes - Revenue for Q1 2025 was $150.5 million, an increase of approximately 6% compared to Q4 2024, and within the guidance range of $146 million to $152 million [5] - Adjusted EBITDA for the quarter was $16.5 million, reflecting a 17% increase quarter over quarter, with incremental adjusted EBITDA margins of approximately 26% [5][6] - Cash and cash equivalents as of March 31, 2025, were $17.3 million, with total liquidity of $53.8 million [11] Business Line Data and Key Metrics Changes - Cementing revenue increased by approximately 4% to $57.2 million, with jobs completed rising by approximately 11% [12][13] - Wireline revenue grew by approximately 7% to $29.6 million, with 7,713 wireline stages completed, an increase of approximately 15% [13] - Coiled tubing revenue increased by approximately 16% to $29.9 million, with utilization significantly higher compared to Q4 [8][14] Market Data and Key Metrics Changes - The U.S. rig count remained flat in Q1, yet the company achieved revenue growth across all service lines [6] - Pricing across service lines was mostly stable, except for wireline operations in the Northeast, which experienced lower stage pricing due to bidding impacts [7] Company Strategy and Development Direction - The company is focused on market share gains and cost reductions, with a strong emphasis on technology development and maintaining service quality [5][19] - The recent appointment of Joey Hall to the Board of Directors is aimed at enhancing industry expertise within the company [20] Management's Comments on Operating Environment and Future Outlook - Management noted uncertainty in the energy industry due to declining oil prices and increased costs from tariffs, impacting customer plans and activity levels [16][18] - The company anticipates Q2 revenue to decline compared to Q1, projecting between $138 million and $148 million [19] - Management remains optimistic about the long-term outlook for natural gas and its potential positive impact on earnings [17] Other Important Information - The company completed a refinancing of its ABL revolving credit facility, increasing liquidity and financial flexibility [9][10] - General and administrative expenses for Q1 were $13.3 million, with a full-year CapEx budget unchanged at $15 million to $25 million [14][15] Q&A Session Summary Question: Pricing pressures and impacted business lines - Management indicated that pricing pressure is primarily seen in the cementing division, largely due to tariffs and commodity price fluctuations [22][23] Question: Oil price guidance - Management stated it is too early to provide specific guidance on oil prices, emphasizing the importance of market conditions and customer evaluations [27][28] Question: Ability to pass on tariff costs - Management confirmed plans to pass tariff costs onto customers, as the service sector cannot absorb these increases [30][31] Question: Natural gas market outlook - Management expressed excitement about the natural gas market and confirmed no plans to relocate equipment at this time [33][34] Question: International tool sales - Management reported positive performance in international tool sales and highlighted ongoing development of completion tools [36]

Company Overview - Nine's Q1 2025 IR Presentation highlights a diversified service line with Completion Tools accounting for 24%, Cementing for 36%, Coiled Tubing and Wireline each contributing 20% to revenue[8] - The company's financials show revenue of $554 million in 2023 and $602 million in 2024, with Q1 2025 revenue reaching $150 million[10,73] - Adjusted EBITDA was $53 million in 2023, $66 million in 2024, and $17 million in Q1 2025[10,73] Strategy and Technology - Nine focuses on an asset-light business model, reducing capital expenditure needs by approximately 60%, from an average of ~$53 million between 2017-2019 to ~$21 million between 2021-2024[13,20] - The company emphasizes technology-based services, with approximately 60% of its business driven by completion tools and cementing[11] - Nine's US Wireline & Completion Tools market share of stage completions ranged from 14% to 21% between 2018 and 2024[23] - The company's US Cementing Market Share has fluctuated between 14% and 19% from 2018 to YE 2024[25] Financial Highlights and Capitalization - Q1 2025 revenue increased by approximately 6% quarter-over-quarter, and Adjusted EBITDA increased by approximately 17% quarter-over-quarter[71] - As of March 31, 2025, Nine had $173 million in cash, $47 million outstanding on its ABL Credit Facility, and $300 million in 2028 Senior Secured Notes, resulting in net debt of $3297 million[75] - A new revolving credit facility with White Oak Commercial Finance provides ~$219 million of incremental covenant-compliant availability and extends the maturity to November 2027, assuming senior secured notes outstanding[77]

Company Performance - Nine Energy Service reported a quarterly loss of $0.18 per share, which was worse than the Zacks Consensus Estimate of a loss of $0.15, representing an earnings surprise of -20% [1] - The company posted revenues of $150.47 million for the quarter ended March 2025, surpassing the Zacks Consensus Estimate by 0.92% and showing an increase from $142.12 million year-over-year [2] - Over the last four quarters, Nine Energy has surpassed consensus EPS estimates two times and topped consensus revenue estimates three times [2] Stock Outlook - Nine Energy shares have declined approximately 33% since the beginning of the year, contrasting with the S&P 500's decline of -4.7% [3] - The current consensus EPS estimate for the upcoming quarter is -$0.13 on revenues of $151.8 million, and for the current fiscal year, it is -$0.61 on revenues of $599.8 million [7] - The estimate revisions trend for Nine Energy is mixed, resulting in a Zacks Rank 3 (Hold), indicating expected performance in line with the market in the near future [6] Industry Context - The Oil and Gas - Field Services industry, to which Nine Energy belongs, is currently ranked in the bottom 43% of over 250 Zacks industries, suggesting potential challenges ahead [8] - Empirical research indicates a strong correlation between near-term stock movements and trends in earnings estimate revisions, which could impact Nine Energy's stock performance [5]

Revenue and Profitability - Revenues increased by $8.3 million, or 6%, to $150.5 million for Q1 2025 compared to Q1 2024, primarily driven by an 18% increase in cementing revenue[92] - Adjusted gross profit rose by approximately $1.9 million to $28.0 million for Q1 2025, reflecting improved revenue and cost management[94] - The company anticipates a decline in revenue and profitability for Q2 2025 due to lower oil prices and reduced activity in the Permian Basin[86] - The loss before income taxes improved by $955,000, or 12%, to $(6.9) million for Q1 2025 compared to $(7.9) million in Q1 2024[91] - The company recorded a net loss of $(7.1) million for Q1 2025, a decrease of $994,000, or 12%, from $(8.1) million in Q1 2024[91] - Net loss decreased by $1.0 million, or 12%, to $7.1 million for Q1 2025, while Adjusted EBITDA increased by $1.5 million, or 10%, to $16.5 million[100] Costs and Expenses - Cost of revenues increased by $6.5 million, or 6%, to $122.5 million for Q1 2025, attributed to higher material and vehicle costs[93] - General and administrative expenses increased by $1.0 million to $13.3 million for Q1 2025, mainly due to higher employee-related costs[94] - Non-operating expenses increased by $0.3 million to $12.6 million for Q1 2025 compared to Q1 2024, primarily due to decreased interest income[98] Cash Flow and Liquidity - Net cash used in operating activities decreased to $5.3 million in Q1 2025 from $8.8 million in Q1 2024, attributed to a $1.9 million increase in cash provided by working capital[134] - Net cash used in investing activities was $4.0 million in Q1 2025, down from $5.5 million in Q1 2024, due to a $1.5 million decrease in cash purchases of property and equipment[135] - Net cash used in financing activities decreased to $1.6 million in Q1 2025 from $6.2 million in Q1 2024, primarily due to $4.0 million in proceeds from the 2018 ABL Credit Facility[136] - As of March 31, 2025, the company had $17.3 million in cash and cash equivalents and $36.5 million available under the 2018 ABL Credit Facility, totaling $53.8 million in liquidity[116] Capital Expenditures and Debt - The planned capital expenditure budget for 2025 is expected to be between $15 million and $25 million, excluding possible acquisitions[114] - The company entered into an equity distribution agreement to sell shares of common stock with an aggregate offering price of up to $30.0 million[119] - The company completed a public offering of 300,000 units with an aggregate stated amount of $300.0 million, consisting of 13.000% Senior Secured Notes due 2028 and common stock[121] - The 2028 Notes will mature on February 1, 2028, with an annual interest rate of 13.000% payable semi-annually starting August 1, 2023[122] - As of March 31, 2025, the company had $47.0 million of borrowings under the 2018 ABL Credit Facility, with approximately $36.5 million available[128] - The 2018 ABL Credit Facility was amended to decrease its size from $200.0 million to $150.0 million and extend the maturity date to January 29, 2027[126] - The 2025 ABL Credit Agreement provides for a revolving credit facility with lender commitments of $125.0 million, maturing on May 1, 2028[129] - The company borrowed approximately $48.9 million under the 2025 ABL Credit Facility to repay all outstanding borrowings under the 2018 ABL Credit Facility[130] - The 2025 ABL Credit Agreement includes a financial covenant requiring a minimum fixed charge ratio of 1.10 to 1.00 when availability is less than $10.0 million[131] - The company was in compliance with all covenants contained in the Amended 2018 ABL Credit Agreement as of March 31, 2025[127] Market Conditions and Outlook - The average rig count in the U.S. was stable at 588 rigs in Q1 2025, compared to 586 rigs in Q4 2024[88] - Natural gas prices averaged approximately $2.19 for 2024 but recovered to about $4.14 in Q1 2025, impacting activity levels in natural gas basins[86] - The company remains cautiously optimistic about the long-term outlook for the energy sector, particularly in natural gas basins, despite current market challenges[89] Performance Metrics - Revenues for Q1 2025 were $150.5 million, up from $142.1 million in Q1 2024, resulting in a gross profit of $19.5 million[112] - Adjusted gross profit for Q1 2025 was $28.0 million, compared to $26.1 million in Q1 2024[112] - Adjusted ROIC for Q1 2025 was 8.8%, an increase from 6.0% in Q1 2024[109] - Total capital as of March 31, 2025, was $259.9 million, compared to $300.3 million as of March 31, 2024[109]

Loan Agreement Terms - The Loan and Security Agreement is dated as of May 1, 2025, among multiple parties including White Oak Commercial Finance, LLC as Agent and Nine Energy Service, Inc. as the Company[8]. - The agreement incorporates various schedules and exhibits that are integral to its terms[8]. - The agreement includes provisions for Protective Advances and conditions for making loans and issuing letters of credit[9]. - The agreement outlines the conditions for repayments and prepayments of loans[9]. - Borrowers are required to pay all reasonable fees, costs, and expenses incurred by Agent and Lenders in connection with the preparation and execution of agreements related to the increase, as specified in Section 10.7[14]. Borrowing and Repayment Conditions - The Maximum Revolving Facility Amount may be increased to $175,000,000, with each Facility Increase being no less than $5,000,000[13]. - All Revolving Loans shall be made in and repayable in Dollars, and any repaid Revolving Loans may be reborrowed[12]. - The Borrowing Agent may request a Facility Increase after November 3, 2025, subject to certain conditions including no existing Default or Event of Default[13]. - Each Lender's Revolving Commitment will be increased consistent with its Pro Rata Share upon a Facility Increase[13]. - The outstanding balance of all Revolving Loans and Letter of Credit Liabilities will not exceed the lesser of the Maximum Revolving Facility Amount minus Reserves or the Borrowing Base[9]. - Borrowers must ensure that Excess Availability is no less than $25,000,000 after the issuance of Loans and Letters of Credit[1]. - Borrowers are required to prepay the unpaid principal balance of the Revolving Loans within three Business Days following any Prepayment Event[36]. - If the outstanding balance of Revolving Loans and Letter of Credit Liabilities exceeds the Line Cap, Borrowers must pay the excess within two Business Days[32]. - All remaining outstanding monetary Obligations must be paid in full on the Maturity Date[34]. - On the Maturity Date, Borrowers must provide cash collateral equal to 103% of the outstanding Letter of Credit Liabilities[34]. Fees and Payments - Borrowers must pay Letter of Credit Fees computed daily from the date of issuance until the last day a drawing is available, at a rate equal to the Applicable Margin for Revolving Loans based on the SOFR Index Rate[22]. - If Agent makes a payment to an LC Issuer, Borrowers must reimburse Agent by the end of the day of such payment or be deemed to have requested a Revolving Loan equal to the payment amount[24]. - Borrowers are required to deposit cash equal to 103% of the aggregate outstanding Letter of Credit Liabilities if they prepay in full or terminate the Revolving Commitments[27]. - Each Lender is deemed to have purchased an undivided interest in Agent's Support Agreement liabilities and Borrowers' Reimbursement Obligations with respect to each Supported Letter of Credit[28]. - Lenders must pay their Pro Rata Share of any payment made by Agent or an LC Issuer if Borrowers have not reimbursed in full, with interest accruing at the Federal Funds Rate for the first three days[29]. - The obligations of Borrowers to reimburse Agent and/or the applicable LC Issuer are absolute and unconditional, regardless of any claims or defenses[25]. Security Interests and Collateral - Each Loan Party grants Agent a continuing security interest in all property, including Accounts, Inventory, and Investment Property, to secure the full payment of Obligations[73]. - Loan Parties must deliver original documents for any Collateral valued over $1,500,000 to Agent within ten Business Days[75]. - Each Loan Party is required to execute any Additional Documents requested by Agent to create and perfect Liens in all assets[77]. - Agent is authorized to file financing statements listing Loan Parties as debtors and Agent as secured party[80]. - The security interest attaches upon the execution of the Agreement, ensuring that value has been given and rights in the Collateral exist[81]. Financial Covenants and Reporting - Each Loan Party has timely filed all tax returns and paid all applicable taxes, with no known assessments that could result in additional taxes due[130]. - All financial statements delivered by any Loan Party conform to GAAP and fairly reflect the financial condition of the Loan Parties[127]. - The fair saleable value of all assets of the Loan Parties exceeds their aggregate liabilities, indicating overall solvency[128]. - Each Loan Party must comply with ERISA and the Code regarding all Plans, ensuring no material liabilities are incurred[138]. - Annual financial statements must be audited and delivered within 90 days after the fiscal year-end, including balance sheets and income statements[146]. - Interim financial statements are to be provided within 30 days after each fiscal month, including comparative figures from the previous year[148]. - Monthly business projections must be submitted 30 days prior to the end of each fiscal year, detailing profit and loss, balance sheet, and cash flow projections[153]. Events of Default - The occurrence of any warranty, representation, or statement made to the Agent or any Lender that is untrue or misleading in any material respect constitutes an "Event of Default"[196]. - A Loan Party failing to pay any principal or interest payment when due, or any other monetary obligation within three business days of when due, is considered an Event of Default[196]. - If any Loan Party suffers final non-appealable judgments exceeding $1,000,000, it triggers an Event of Default if enforcement proceedings are commenced[197]. - A default with respect to any Indebtedness exceeding $5,000,000, if it consists of failure to pay when due, is classified as an Event of Default[197]. - The appointment of a receiver or similar official for any Loan Party, or its admission of inability to pay debts, constitutes an Event of Default[198]. - The commencement of an involuntary case against any Loan Party seeking liquidation or reorganization that remains undischarged for sixty days is an Event of Default[198]. - If any Loan Party makes payments on subordinated Indebtedness contrary to contractual provisions, it is an Event of Default[199]. - The actual or attempted revocation of any guaranty of the Obligations by any Loan Party is classified as an Event of Default[199]. - If any Lien created by a Loan Document ceases to be a valid perfected first priority Lien on material collateral, it constitutes an Event of Default[200]. - Any Loan Document ceasing to be in full force and effect, except by discharge or written agreement, is considered an Event of Default[200].

Core Points - Nine Mile Metals Ltd. has completed the second tranche of a private placement, issuing 6,309,699 units at a price of $0.021 per unit, raising total proceeds of $132.503 million [1] - The total combined value of the original offering and debt conversion in the first tranche amounts to $388.653 million [1] - All current directors participated in the second tranche, purchasing 1,217,857 units for $25.575 million [3] Financial Details - The proceeds from the private placements will be allocated for general and administrative obligations [4] - Each unit consists of one common share and one common share purchase warrant, with the warrant allowing the purchase of one common share at $0.05 for a period of 60 months [2] Company Overview - Nine Mile Metals Ltd. is focused on Critical Minerals Exploration (CME) in the Bathurst Mining Camp, New Brunswick, Canada, targeting minerals such as Copper, Silver, Lead, and Zinc [6] - The company aims to position itself for the growing demand in electric vehicle and green technologies [6] Regulatory Compliance - The technical information disclosed in the news release complies with Canadian regulatory requirements as per National Instrument 43-101 [7] - The issuance of common shares will not create a new insider or control person [5]

Company Overview - Nine Energy Service (NINE) is a stock within the Oils-Energy sector, which consists of 247 individual stocks and currently holds a Zacks Sector Rank of 7 [2] - The Zacks Rank system highlights stocks with characteristics that are likely to outperform the market over the next one to three months, with NINE currently holding a Zacks Rank of 2 (Buy) [3] Performance Metrics - Nine Energy Service has achieved a year-to-date return of 13.4%, outperforming the average return of the Oils-Energy sector, which stands at 5.4% [4] - The Zacks Consensus Estimate for NINE's full-year earnings has increased by 20% over the past quarter, indicating stronger analyst sentiment and an improving earnings outlook [4] Industry Context - Nine Energy Service is part of the Oil and Gas - Field Services industry, which includes 22 companies and currently ranks 140 in the Zacks Industry Rank; this industry has gained an average of 3.1% year-to-date, further highlighting NINE's superior performance [6] - In comparison, Skeena Resources Limited (SKE), another Oils-Energy stock, has returned 14.2% year-to-date and belongs to the Oil and Gas - Exploration and Production - Canadian industry, which ranks 17 and has moved +1.8% year-to-date [5][7]

Core Viewpoint - Momentum investing focuses on "buying high and selling higher" rather than the traditional "buying low and selling high" strategy, aiming for quicker profits [1] Group 1: Momentum Investing Strategy - Fast-moving trending stocks can be difficult to enter at the right time, as they may lose momentum if future growth does not justify their high valuations [2] - A safer approach is to invest in bargain stocks that exhibit recent price momentum, utilizing tools like the Zacks Momentum Style Score to identify these opportunities [3] Group 2: Nine Energy Service (NINE) Analysis - Nine Energy Service (NINE) has shown a price increase of 4.2% over the past four weeks, indicating growing investor interest [4] - The stock has gained 23% over the past 12 weeks, with a high beta of 3.58, suggesting it moves 258% more than the market [5] - NINE has a Momentum Score of A, indicating a favorable time to invest based on momentum [6] Group 3: Earnings Estimates and Valuation - NINE has received a Zacks Rank 2 (Buy) due to upward revisions in earnings estimates, which typically attract more investors [7] - The stock is trading at a Price-to-Sales ratio of 0.09, meaning investors pay only 9 cents for each dollar of sales, indicating a reasonable valuation [7] Group 4: Additional Investment Opportunities - Besides NINE, there are other stocks that meet the criteria of the 'Fast-Paced Momentum at a Bargain' screen, suggesting further investment opportunities [8] - Various Zacks Premium Screens are available to help identify winning stock picks based on different investing styles [9]

Financial Data and Key Metrics Changes - Company revenue for the year was $554.1 million, with a net loss of $41.1 million or negative $1.11 per diluted share [24] - Adjusted EBITDA for the year was $53.2 million, while Q4 revenue was $141.4 million, an increase of approximately 2% quarter-over-quarter [25][11] - Adjusted EBITDA for Q4 was $14.1 million, relatively flat compared to Q3 [25] Business Line Data and Key Metrics Changes - Cementing revenue for Q4 was $54.8 million, an increase of approximately 7%, with 1,121 cementing jobs completed, a 12% increase versus Q3 [30] - Wireline revenue for Q4 was $27.6 million, a decrease of approximately 1%, with 6,713 wireline stages completed, a 6% increase [30] - Coiled tubing revenue for Q4 was $25.8 million, a decrease of approximately 7%, with utilization at 44% [31] Market Data and Key Metrics Changes - The U.S. market ended the year with around 590 rigs, a decline of over 30 rigs for the year, following a drop of over 150 rigs in 2023 [6] - Low natural gas prices, averaging around $2.19 for the year, contributed to lower activity levels in the U.S. market [7] Company Strategy and Development Direction - The company implemented a two-pronged strategy to drive profitability in a declining rig count environment, focusing on cost-cutting measures and market share gains [10] - The Cementing division was the largest driver of revenue and profitability gains over the last two quarters, with market share increasing to approximately 19% [12][13] Management's Comments on Operating Environment and Future Outlook - Management expressed cautious optimism for 2025, anticipating revenue and adjusted EBITDA growth due to improved natural gas prices and sustained market share gains [35][36] - The company expects Q1 revenue between $146 million and $152 million, driven primarily by cementing and completion tools [38] Other Important Information - The company launched its first sustainability report in 2024, reflecting its commitment to operational excellence and community impact [22] - A refresh of the Board of Directors was announced, welcoming two new members with extensive industry experience [41][42] Q&A Session Summary Question: Adoption rates of dissolvable plugs in different basins - Management noted that hot basins like Haynesville and Eagle Ford show higher adoption rates for dissolvable plugs, benefiting from supportive gas prices [49][50] Question: Impact of tariffs on input costs - Management acknowledged that if tariffs remain, there will be impacts on the supply chain, particularly concerning steel and cement [56][59] Question: Q1 revenue growth drivers - The primary driver for Q1 growth is cement, with additional contributions expected from completion tools and coiled tubing [66]