Financial Performance - Fourth quarter 2023 revenue was $144.1 million, net loss of $(10.3) million, and adjusted EBITDA of $14.6 million, within the original guidance range of $137.0 to $147.0 million[2][3] - Full year 2023 revenue was $609.5 million, net loss of $(32.2) million, and adjusted EBITDA of $73.0 million[5][7] - Net income (loss) for 2023 was $(32.213) million, a significant decline from $14.393 million in 2022[26] - Adjusted EBITDA for 2023 was $72.966 million, down from $93.738 million in 2022[28] - Adjusted gross profit for 2023 was $118.776 million, compared to $136.289 million in 2022[34] Revenue and Sales Growth - The total number of StingerTM Dissolvable units sold increased by approximately 18% year-over-year[4][5] - International revenue increased by approximately 16% year-over-year[4][5] Cash Flow and Liquidity - The company reported net cash provided by operating activities of $45.5 million for the full year 2023[11] - Net cash provided by operating activities increased to $45.509 million in 2023 from $16.672 million in 2022[26] - The company had a total liquidity position of $58.9 million as of December 31, 2023, including $30.8 million in cash and cash equivalents and $28.1 million of availability under the revolving credit facility[12] - Cash and cash equivalents increased by $13.395 million to $30.840 million at the end of 2023, compared to $17.445 million at the end of 2022[26] Capital Expenditures and Investments - Total capital expenditures for the full year 2023 were approximately $22.3 million, below the original guidance of $25 to $35 million[11] - The company generated ROIC of (10.8)% and adjusted ROIC of 8.8% for the full year 2023[7] - Adjusted ROIC for 2023 was 8.8%, down from 16.3% in 2022[31] - Adjusted ROIC is defined as adjusted after-tax net operating profit (loss) divided by average total capital[37] - Adjusted after-tax net operating profit (loss) includes adjustments for goodwill, intangible asset, and property impairments, transaction costs, interest expenses, restructuring charges, and other items[37] - Total capital is calculated as book value of equity plus book value of debt minus cash and cash equivalents[37] - Adjusted ROIC is used to evaluate operating income generation relative to invested capital and assists in capital allocation decisions[37] - The company revised the titles of Adjusted ROIC and adjusted after-tax net operating profit (loss) to clearly identify them as non-GAAP measures[37] Balance Sheet and Debt - Total assets decreased to $401.984 million in 2023 from $426.834 million in 2022[24] - Total liabilities decreased to $437.614 million in 2023 from $450.341 million in 2022[24] - Long-term debt decreased to $320.520 million in 2023 from $338.031 million in 2022[24] - Accounts receivable, net decreased to $88.449 million in 2023 from $105.277 million in 2022[24] Product and Market Strategy - The company introduced new technology with the Pincer Hybrid Frac Plug and aims to gain market share with this tool in 2024[4] Gross Profit and Operating Metrics - The company reported gross profit of $80.2 million and adjusted gross profit of $118.8 million for the full year 2023[7]

UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 10-Q _________________________________ (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended September 30, 2023 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission File Number: 001-38347 __________________________________________________________________ Nine Energy Serv ...

Financial Data and Key Metrics Changes - Revenue for Q2 2023 was $161.4 million, within the guidance of $158 million to $166 million, with adjusted EBITDA of $21.7 million and an adjusted EBITDA margin of 13% [22][9] - Diluted earnings per share was negative $0.08, and return on invested capital (ROIC) for the quarter was 12.9% [4] - The company reported net cash provided by operating activities of $27.1 million, with an average Days Sales Outstanding (DSO) of 52.4 days [12][9] - General and administrative expenses were $14.2 million, and depreciation and amortization expenses were $10.3 million [11] Business Line Data and Key Metrics Changes - Cementing revenue decreased by approximately 5% to $58.1 million, with a decrease in the average blended revenue per job by approximately 5% [29] - Wireline revenue increased by approximately 4% to $31 million, with a 12% increase in completed wireline stages, but the average blended revenue per stage decreased by approximately 7% [10] - Completion tool revenue was $38.9 million, an increase of approximately 3%, despite a 14% decrease in completed stages [10] - Coiled tubing revenue remained flat at $33.5 million, with a 16% decrease in coiled tubing days but a 19% increase in average blended day rate [30] Market Data and Key Metrics Changes - The Northeast rig count has been stable, but pricing pressure and completion delays are affecting revenue and margins [23] - The U.S. rig count declined approximately 14% through the first half of the year, with significant declines in the Eagle Ford and Haynesville regions [24] - International revenue is approximately 4% to 5% of consolidated revenue, with a strategy to increase this profile [37] Company Strategy and Development Direction - The company is focused on maintaining pricing and market share through proprietary slurries and well site execution, while also investing in internal R&D for new technology [6][13] - There is a cautious optimism regarding a potential rebound in rig counts and activity levels in the second half of 2023 and into 2024 [13][32] - The company aims to reduce dependency on North American land by increasing international sales and focusing on completion tools [37] Management's Comments on Operating Environment and Future Outlook - Management noted that the market remains volatile, with commodity prices being erratic and unpredictable, complicating capital allocation decisions [32] - There is an expectation for Q3 revenue to decline compared to Q2, projected between $140 million and $150 million, with anticipated declines in adjusted EBITDA and margins [14] - Management is optimistic about the potential for recovery in activity levels, but acknowledges the challenges posed by pricing pressures and market conditions [92][63] Other Important Information - The company completed 6,106 wireline stages in Q2, with a noted increase in international orders contributing to revenue [10][60] - The company has a strong liquidity position of $60.1 million as of June 30, 2023, with $41.1 million in cash and cash equivalents [28] Q&A Session Summary Question: Can you provide some color on international sales and completion tools? - Management indicated that international revenue is recurring and part of the strategy to increase this profile [17] Question: What are the plans for the remaining debt outstanding? - Management plans to use generated cash flow to pay down the credit facility first, then focus on bonds [19] Question: How is the demand for coiled tubing units affected by dissolvable plugs? - Management noted that demand for coiled tubing has remained strong despite the penetration of dissolvable plugs [40] Question: Have conversations with customers changed due to recent commodity price strength? - Management stated that conversations regarding pricing have not changed significantly yet, as stability in commodity prices is needed [41] Question: What is the strategy for growth in completion tools? - The company is focusing on internal R&D and has secured contracts in the Middle East, aiming for organic growth and potential M&A [44][45] Question: How is the company handling labor amidst market volatility? - Management emphasized the importance of retaining skilled labor and is cautious about making cuts, anticipating a recovery in activity [92][103]

UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 10-Q _________________________________ (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended June 30, 2023 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission File Number: 001-38347 __________________________________________________________________ Nine Energy Service, ...

Nine Energy Service, Inc. (NYSE:NINE) Q1 2023 Earnings Conference Call May 9, 2023 10:00 AM ET Company Participants Guy Sirkes - Senior Vice President and Chief Financial Officer Ann Fox - President and Chief Executive Officer Conference Call Participants Waqar Syed - ATB Capital Markets Ignacio Bernaldez - EF Hutton Operator Greetings and welcome to the Nine Energy Service Earnings Call. At this time, all participants are in a listen-only mode. A brief question-and-answer session will follow the formal pre ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 10-Q _________________________________ (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended March 31, 2023 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission File Number: 001-38347 __________________________________________________________________ Nine Energy Service, ...

Nine Energy Service, Inc. (NYSE:NINE) Q4 2022 Earnings Conference Call March 8, 2023 10:00 AM ET Company Participants Guy Sirkes - CFO Ann Fox - President and CEO Conference Call Participants Waqar Syed - ATB Capital Markets Ignacio Bernaldez - EF Hutton Operator Greetings, and welcome to Nine Energy Service Fourth Quarter and Full Year 2022 Earnings Conference Call. At this time, all participants are in a listen-only mode. A question-and-answer session will follow the formal presentation. [Operator Instruc ...

Operational Performance - Nine Energy Service completed approximately 18,100 cementing jobs from January 2018 to December 2022, achieving an on-time rate of approximately 90%[29] - The company deployed approximately 377,100 isolation, stage one, and casing flotation tools during the same period, enhancing completion efficiencies[31] - From January 2018 to December 2022, Nine Energy Service performed approximately 5,890 coiled tubing jobs, deploying over 160 million running feet of coiled tubing with a success rate exceeding 99%[36] - Nine Energy Service's wireline services achieved a success rate of approximately 99% with around 140,700 wireline stages completed from January 2018 to December 2022[33] - The company emphasizes a service-driven culture, which is a key contributor to its operational efficiency and customer satisfaction[29] - The company focuses on providing cost-effective completion solutions to maximize production levels and operating efficiencies for E&P customers across major onshore basins in the U.S. and Canada[206] Customer and Revenue Concentration - The top five customers accounted for approximately 21% of Nine Energy Service's revenues for the year ended December 31, 2022[43] - The five largest customers accounted for approximately 21% of total revenues for the year ended December 31, 2022[134] - The company generated approximately 0.3% and 0.6% of its revenue from operations in western Canada for the years ended December 31, 2022 and 2021, respectively[129] Financial Performance - In 2022, the company reported revenues of $593,382,000, a 70% increase from $349,419,000 in 2021[221] - Adjusted gross profit for 2022 was $136,289,000, up from $41,427,000 in 2021, reflecting a significant increase of 229%[221] - The company experienced a net income of $14,393,000 in 2022, a turnaround from a net loss of $64,575,000 in 2021, representing an improvement of $78,968,000[221] Regulatory and Environmental Compliance - The company is subject to stringent environmental regulations, including the Clean Water Act, which imposes strict controls on pollutant discharges into waters[68] - The company faces potential liabilities under the Comprehensive Environmental Response, Compensation, and Liability Act (CERCLA) for hazardous substance releases[64] - The company is actively monitoring regulatory changes related to methane emissions, with new rules expected to be finalized by August 2023[71] - The U.S. aims to reduce GHG emissions by 50-52% by 2030 compared to 2005 levels, with a commitment to the Paris Agreement[75] - The Global Methane Pledge targets a 30% reduction in global methane emissions from 2020 levels by 2030, with over 150 countries participating[75] - The SEC proposed a rule for mandatory climate-related disclosures, which may increase compliance costs and operational challenges for the company[79] - The U.S. Bureau of Land Management proposed regulations to minimize natural gas waste during oil and gas production, requiring waste minimization plans[81] - The company’s operations may be affected by potential new federal regulations on hydraulic fracturing, which could impose additional costs and operational restrictions[82] - Increased regulatory oversight of hydraulic fracturing at state and local levels could lead to higher operational costs and reduced demand for services[85] - The National Environmental Policy Act may delay oil and natural gas project approvals due to required environmental impact evaluations[87] - Future designations of critical habitats under the Endangered Species Act could restrict land use and adversely affect demand for services[88] Market Conditions and Economic Factors - The average price of West Texas Intermediate (WTI) oil for 2022 was $94.90, a 39% increase from 2021, and $55.74 higher than 2020[93] - The posted price for WTI oil ranged from a low of $(36.98) per barrel in April 2020 to a high of $123.64 per barrel in March 2022[93] - The Henry Hub spot market price of gas fluctuated between a low of $1.33 per MMBtu in September 2020 and a high of $23.86 per MMBtu in February 2021[93] - Average rig count increased by 51% from 2021 to 2022 and was 67% higher in 2022 than in 2020[93] - The company anticipates an increase in U.S. E&P capital expenditure levels in 2023, although at a slower rate than in 2022[217] - The average WTI price for 2022 was $94.90, although prices began to decline in Q3 2022 due to economic factors[216] - The U.S. average drilled but uncompleted wells inventory in 2022 was down over 40% from 2019 levels, indicating a need for increased drilling to maintain production[217] Risks and Challenges - The company faces cyclical business risks tied to capital spending in the oil and natural gas industry, which is influenced by external market conditions[90] - The company faces inflationary pressures, including increases in labor and material costs, which could offset price increases for products and services[98] - A decline in oil and natural gas commodity prices may adversely affect demand for the company's products and services[93] - The company may experience lower utilization of equipment and services in weak oil and natural gas price environments[95] - Increased scrutiny of sustainability matters could damage the company's reputation and adversely affect its business[105] - Negative public perception of the oil and gas industry may hinder the company's ability to raise debt and equity capital[102] - The company may face restrictions in its debt agreements that could limit its ability to finance future operations or capital needs[112] - The company is exposed to credit risk from customers, particularly in the volatile oil and natural gas E&P industry, which could adversely affect its financial results[132] - Certain product lines are at risk due to supplier concentration, which could negatively impact operations if key suppliers face disruptions[135] - The company faces potential cyber security risks that could adversely affect its financial condition and results of operations[165] Corporate Governance and Structure - SCF VII, L.P. and SCF-VII(A), L.P. owned approximately 27% of the company's outstanding common stock as of December 31, 2022[166] - Another stockholder beneficially owned approximately 10% of the outstanding common stock as of December 31, 2022, leading to a concentration of ownership that may limit other stockholders' influence[167] - The company’s charter and bylaws contain provisions that could deter takeover attempts, potentially affecting stockholder value[182] - The company may face increased legal and financial compliance costs once it no longer qualifies as an emerging growth company[189] Employee and Operational Risks - As of December 31, 2022, the company employed 1,212 full-time employees, with no collective bargaining agreements in place[59] - The company may face challenges in attracting and retaining skilled employees due to competition and market conditions, which could impair growth potential[173] - The company relies heavily on key personnel, particularly the President and CEO, Ann G. Fox, and COO, David Crombie, whose loss could materially affect business operations[172] - Wage and hour-related litigation has increased, with the company named as a defendant, potentially impacting financial condition and operating results[141] Future Outlook and Strategic Initiatives - The company implemented price increases across many service lines in 2022 due to labor shortages and supply chain constraints[218] - The company expects potential price increases in 2023 to be offset by labor and material cost inflation, which may impact customer activity levels[218] - The company does not intend to pay dividends on its common stock in the foreseeable future, limiting stockholder returns to stock price appreciation[175] - The company completed a public offering of 300,000 units with an aggregate stated amount of $300.0 million on January 30, 2023, receiving proceeds of $279.8 million after deductions[210] - On February 1, 2023, the company redeemed all outstanding 2023 Notes at a redemption price of $307.3 million, plus accrued interest of $6.7 million[211]

Nine Energy Service, Inc. (NYSE:NINE) Q3 2022 Results Conference Call November 7, 2022 10:00 AM ET Company Participants Heather Schmidt - VP, Strategic Development and IR Ann Fox - President and CEO Guy Sirkes - CFO Conference Call Participants John Daniel - Daniel Energy Partners Waqar Syed - ATB Capital Markets Ben Piggott - EF Hutton Operator Greetings and welcome to the Third Quarter 2022 Nine Energy Service Earnings Call. At this time, all participants are in a listen-only mode. A brief question-and-an ...

Q3 2022 IR PRESENTATION O Nine DISCLAIMER Forward-Looking Statements & Non-GAAP Financial Measures Certain statements in this presentation are forward-looking statements that are subject to a number of risks and uncertainties, many of which are beyond our control. All statements, other than statements of historical fact included in this presentation, regarding our strategy, future operations, financial position, estimated revenues and losses, projected costs, prospects, plans and objectives of management ar ...