Nine(NINE)2024-05-07 19:40Financial Data and Key Metrics Changes - Revenue for Q1 2024 was 135 million to 15 million and an adjusted EBITDA margin of 11% [25][34] - The company reported a net cash used in operating activities of 10.2 million as of March 31, 2024 [10][14] - Diluted earnings per share was negative 48.3 million, down approximately 8% [12] - Wireline stages completed increased by approximately 14%, with wireline revenue flat at 2 [32][33] - Approximately 34% of Nine's revenue was generated from the Northeastern Haynesville in 2023, with expectations of a temporary slowdown in gas-related activity [33] Company Strategy and Development Direction - The company remains focused on diversifying revenue streams, particularly in completion tools and international markets, while maintaining an asset-light business model [35] - The company is optimistic about the continued adoption of dissolvable technology and plugs in both the US and international markets [9] - The strategy includes flexibility in capital expenditures, with a guidance range of 25 million, adaptable based on market conditions [14][65] Management's Comments on Operating Environment and Future Outlook - Management noted that while the oil markets are stable, there is potential for additional rigs in the Permian if commodity prices remain supportive [17] - The company expects adjusted EBITDA and margins to decrease from Q1 levels due to pricing pressures in the cementing business [18] - Management remains positive on the medium and long-term outlook for the gas market despite short-term challenges [33] Other Important Information - The company has not sold any shares under the ATM program and did not generate excess cash flow in the last two fiscal quarters [29] - The company completed 943 cementing jobs and 28,074 stages for completion tools during the quarter [12][13] Q&A Session All Questions and Answers Question: Are you seeing stability in the spot pricing? - Management indicated that public companies are maintaining flat programs this year, with potential for some oil customers in the Northeast to increase rig activity later in the year [22] Question: Has the recent consolidation in the E&P industry impacted your business? - Management noted that consolidation has not had a negative impact and may streamline processes, leading to potential consistency in operations [21] Question: How do you see the refrac market opportunity? - Management expressed optimism about the refrac market, highlighting that they are one of the few companies in the US offering this solution and expect growth in this niche market [71]