The following is a summary of the Nine Energy Service, Inc (NINE) Q2 2024 Earnings Call Transcript:
Financial Performance:
During Q2 2024, Nine Energy Service reported revenues of $132.4 million, adjusted EBITDA of $9.7 million, and a diluted EPS of negative $0.40.
Adjusted gross profit for the quarter stood at $20.4 million, while net cash provided by operating activities was $12.9 million.
The company reported a decrease of approximately 2% in the number of cementing jobs and a 15% reduction in coiled tubing revenue.
Business Progress:
Funding operational flexibility through the $30 million ATM program initiated at the end of the previous year, which generated $6.8 million in Q2 from approximately 4.2 million shares sold.
The company ran over 300 refrac jobs to date, establishing as a leading refrac provider in the industry with notable successes in specific niche markets like toe of the well placements using dissolvable plugs and complex completions.
International sales for completion tools exhibit variable quarterly revenue but are part of strategic market expansion for medium- to long-term growth.
Opportunities:
Anticipating potential growth in the refrac service market and adapting operations to serve increasingly large and complex completion programs, thereby enhancing services like cementing, wireline, and coiled tubing.
Notable shift towards meeting higher quality and ESG standards among consolidated operators, driving demand for specialized products like dissolvable plugs.
Risks:
Ongoing depressive conditions in the U.S. rig market with over 40 rigs leaving since the end of 2023, adversely affecting the company's U.S. land service revenue.
Persistent lower natural gas prices leading to delayed completions, further rig declines, and increased market uncertainties.
More details: Nine Energy Service IR
Tips: For more comprehensive details, please refer to the IR website. The article is only for investors' reference without any guidance or recommendation suggestions.
