The following is a summary of the Nine Energy Service, Inc (NINE) Q3 2024 Earnings Call Transcript:

Financial Performance:

• Nine Energy Service reported Q3 2024 revenue of $138.2 million, surpassing the guidance range and showing an increase from the prior quarter.

• Adjusted EBITDA reached $14.3 million, marking a 47% increase quarter-over-quarter.

• Diluted EPS stood at negative $0.26, reflecting ongoing challenges despite revenue growth.

• The company achieved an incremental adjusted EBITDA margin of approximately 79%.

Business Progress:

• The cementing business significantly contributed to revenue growth, gaining approximately 23% market share quarter-over-quarter.

• Notable advances in technology and service differentiation with the pincer hybrid frac plug and frac dart, which reduce costs and increase efficiency for clients.

• Coiled tubing revenue also rose due to better utilization and a 5% increase in revenue quarter-over-quarter.

Opportunities:

• The company anticipates a moderate activity pickup in 2025 if supportive commodity prices prevail, particularly if natural gas prices average $3 or above.

Risks:

• Q4 is expected to show a decline compared to Q3 due to traditional budget exhaustion, weather impacts, and a decrease in international tool sales, projecting Q4 revenue between $132 million and $142 million.

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