Nine(US:NINE)2022-03-08 20:02Financial Data and Key Metrics Changes - Company revenue for the year was $349.4 million, with a net loss of $64.6 million and adjusted EBITDA of $5.2 million. Basic EPS was negative $2.13 [22] - For Q4, revenue totaled $105.1 million, net loss was $15.7 million, and adjusted EBITDA was $4.6 million. Basic EPS was negative $0.52 [25][22] - The average WTI price in 2021 was over $68 per barrel, an increase of approximately 74% year-over-year, yet the average rig count only increased by approximately 10% [11] Business Line Data and Key Metrics Changes - Cementing revenue for Q4 was $34.4 million, an increase of approximately 17%, with 886 jobs completed, up 17% from Q3 [28] - Wireline revenue for Q4 was $21.8 million, an increase of approximately 13%, with 4,606 stages completed, a decrease of approximately 4% [29] - Completion tools revenue was $29.4 million, an increase of approximately 9%, with 25,770 stages completed, an increase of approximately 18% [29] Market Data and Key Metrics Changes - Market share of U.S. stages completed grew from approximately 20% in 2020 to approximately 22% in 2021 [14] - The company increased its market share in the Haynesville region to approximately 26% by year-end 2021 [16] Company Strategy and Development Direction - The company has focused on becoming an asset-light completions-focused company, divesting certain service lines and acquiring technologies like Magnum [13] - The dissolvable plug technology is expected to drive growth, with market adoption projected to expand significantly [17][42] Management's Comments on Operating Environment and Future Outlook - Management remains optimistic about 2022 and 2023, citing under-investment in oil and gas and increasing global demand as factors for market growth [35] - Anticipated North American capital spending is expected to increase by at least 20% in 2022, benefiting all service lines [38] - Labor shortages and inflation are significant concerns, impacting pricing and operational efficiency [40][46] Other Important Information - The company ended 2021 with a total liquidity position of $64.7 million [27] - Total CapEx spend for 2021 was $14.8 million, below the original guidance range [32] Q&A Session Summary Question: Insights on recent strong stock price action - Management has no additional insights on the strong trading volume and price action [53] Question: Expectations for strong incremental margins in Q1 - Management expects much stronger incremental margins but refrains from providing specific figures [54][55] Question: Path to achieving $15 million to $20 million of quarterly EBITDA - Management believes it is possible, depending on the pace of activity and external factors [56] Question: Current active cementing units - Approximately 30 out of 40 cementing units are currently active [58] Question: Pricing strategy approach - Pricing is a constant conversation, adjusting as market conditions change [67]