- **Revenue Miss and Market Challenges**: Q3 revenue of $132 million fell short of guidance due to 7% rig count decline and pricing pressure, with completion tools revenue down 16%.
- **International Growth**: Year-to-date international revenue up 19%, driven by UAE, Argentina, and Australia.
- **Operational Innovation**: Landmark cementing job in Haynesville basin with latex-based slurry, despite Northeast drought-related inefficiencies.
- **2026 Outlook Uncertainty**: Operators evaluating CapEx amid oil price volatility; service sector capital constraints limit equipment upgrades.

**【Heather Schmidt's Opening Remarks】**
- Welcomed participants and outlined the call's purpose, emphasizing forward-looking statements and non-GAAP financial measures.
- Highlighted the importance of reviewing risk factors in SEC filings and the reconciliation of non-GAAP measures.

**【Ann Fox's CEO Commentary】**
- Q3 2025 revenue was $132 million, below guidance of $135-145 million, due to market challenges including a 7% rig count decline and pricing pressure.
- Market share losses in completion tools due to customer consolidation and casing size changes; international revenue grew 19% year-to-date.
- Operational challenges in the Northeast due to droughts; highlighted a technical achievement in the Haynesville basin with innovative cementing solutions.
- Q4 2025 revenue projected at $122-132 million, with continued pricing and activity headwinds.

**【Guy Sirkes' CFO Financial Commentary】**
- Liquidity as of Q3 2025: $40.3 million (cash + credit facility), with borrowing base reductions expected through January 2026.
- Revenue declines across services: cementing (-6%), wireline (-15%), completion tools (-16%), coiled tubing (-7%).
- G&A expenses $12.8 million; CapEx $3.5 million (Q3) and $13.9 million (year-to-date), with full-year budget unchanged at $15-25 million.
- Q3 net cash used in operations: $9.9 million; DSO 56.8 days.

**【Q&A Highlights】**
- **Market Dynamics**: Operators may delay 2026 CapEx decisions amid oil price volatility; service sector underinvestment risks straining equipment availability.
- **Equipment Needs**: Long laterals require step-change in coiled tubing technology, but capital constraints limit investment.
- **Operator Pressures**: Upstream sector facing cost curve challenges and acreage quality decline, complicating service sector relief efforts.

Nine Energy Service, Inc. (NINE) Q3 2025 Earnings Call Transcript

- **Resilient performance despite macro headwinds**: $147.3M revenue (beat upper guidance) with $14.1M EBITDA despite 10% U.S. rig decline
- **Key growth drivers**: 
  - Completion Tools (+9% Q2, 20% H1 2025 vs 2024)
  - Wireline (+11% Q2)
  - International Tools (20% H1 2025 vs 2024)
- **Q3 outlook cautious**: $135-145M revenue (down 7-10% vs Q2)
- **Strategic initiatives**: 
  - 30,000+ sq ft Completion Tools test facility opening 2026
  - Growing international market share in Argentina/Middle East
- **Market differentiation**: Gas-levered basins (Northeast/Haynesville) outperforming oil-levered Permian

**【CEO Opening Remarks】**
- Q2 2025 revenue: $147.3 million (upper end of guidance range of $138-148 million), despite 53 rigs exiting U.S. market (-10% in 3 months). 
- Adjusted EBITDA: $14.1 million. 
- Key challenges: 
  - Permian Basin rig decline (40% of historical revenue) leading to pricing pressure
  - Oil prices dropped from $72/Q1 to $65/Q2 (first below $60 in 4 years)
  - Natural gas prices declined from $4.14/Q1 to $3.19/Q2
- Growth areas: 
  - Completion Tools (+9% Q2, 20% H1 2025 vs 2024)
  - Wireline (+11% Q2)
  - International Tools (20% H1 2025 vs 2024)

**【CFO Financial Commentary】**
- **Revenue by service line**: 
  - Cementing: $52.2M (-9%)
  - Wireline: $33M (+11%)
  - Completion Tools: $37M (+9%)
  - Coiled Tubing: $25.1M (-16%)
- **Financial metrics**: 
  - Cash: $14.2M; Revolver availability: $51.3M; Total liquidity: $65.5M
  - G&A: $13.9M; Depreciation: $8.6M
  - Q2 operating cash flow: $10.1M
  - DSO: 55.9 days
- **Q3 2025 guidance**: 
  - Revenue: $135-145M (down vs Q2)
  - EBITDA: Lower than Q2

**【Q&A Highlights】**
- **Private E&P activity**: 
  - Likely to react faster to commodity price declines than public companies
  - Q1 2026 activity discussions indicate potential Permian increases
- **International growth**: 
  - Argentina and Middle East driving multi-cycle barrier valve and plug sales
  - Full year 2025 international revenue expected to exceed 2024
- **New Completion Tools facility**: 
  - 30,000+ sq ft facility in Jacksboro with test wells, drill-out, and flowback capabilities
  - Expected to open in 2026
- **Market dynamics**: 
  - Gas-levered basins (Northeast, Haynesville) more resilient than oil-levered Permian
  - Private operators prioritize operational efficiency and field autonomy


Nine Energy Service, Inc. (NINE) Q2 2025 Earnings Call Transcript

- **Q1 Growth Highlights**: $150.5M revenue (+6% QoQ), $16.5M EBITDA (+17% QoQ), 26% incremental margins. Coiled tubing up 16%, wireline +7%, completion tools +2%.
- **Q2 Guidance**: $138-$148M revenue amid oil price volatility and tariff challenges. Pricing conversations ongoing with customers.
- **Financial Flexibility**: New $125M ABL extends maturity, adds $14.4M borrowing base. Annual interest cost +$1M.
- **Gas Market Optimism**: No equipment relocation, focusing on existing gassy footprints. International tool sales growing with new R&D facility.
- **Plug Tech Demand**: Long laterals (e.g., 4-mile Bakken) driving innovation in frac plugs. No service pull-through from international sales.

**【CEO Summary Section】**
- Q1 2025 revenue reached $150.5 million, up 6% QoQ, with adjusted EBITDA of $16.5 million (17% QoQ increase). Incremental EBITDA margins were 26%, driven by market share gains in cementing and coiled tubing. Coiled tubing revenue rose 16% QoQ due to higher utilization, while wireline revenue increased 7% despite Northeast pricing pressures. Completion tool revenue grew 2% with Permian Basin market share gains.
- Q2 guidance projects revenue of $138-$148 million, reflecting cautious outlook amid oil price volatility and tariff impacts. Pricing conversations with customers are ongoing to offset tariffs in wireline and coiled tubing divisions.
- Long-term optimism for natural gas markets, with no plans to relocate equipment. International completion tool sales are a bright spot, with a new Texas facility enhancing R&D capabilities.

**【CFO Financial Commentary】**
- Refinanced ABL credit facility to $125 million with $50 million accordion, extending maturity to November 2027. Borrowing base increased by $14.4 million, reducing fixed charge covenant trigger by $7.5 million. Annual interest expense expected to rise $1 million.
- Q1 cash balance of $17.3 million with $36.5 million ABL availability. No ATM share sales or excess cash flow note repurchases. DSO improved to 57.6 days, with Q1 CapEx of $4.3 million.
- Segment details: Cementing revenue $57.2 million (+4% QoQ), wireline $29.0 million (+7% QoQ), completion tools $33.9 million (+2% QoQ), coiled tubing $29.9 million (+16% QoQ). G&A expenses $13.3 million, tax provision $0.1 million.

**【Q&A Key Takeaways】**
- Pricing pressures in West Texas cementing and Permian Basin due to tariffs and oil price uncertainty. Customers understand tariffs must be passed through, but timing and magnitude remain unclear.
- Natural gas markets (Haynesville, Appalachia) are key growth areas, with no equipment relocation plans. International tool sales are a strategic focus, supported by new Texas R&D facility.
- Plug technology demand for long laterals (e.g., 4-mile Bakken wells) is expected to grow, driven by complexity and efficiency needs. No pull-through effect for other services from international tool sales.
- Q2 oil price assumptions are cautious, with no definitive guidance on $50s vs. $60s WTI. Monitoring trade agreements and commodity price trends for revised outlook.

Nine Energy Service (NINE)-8 May 25-2025 Q1 Earnings call transcript

- **Revenue Growth**: Q4 revenue $141.4M (+2% QoQ), Q1 2025 guidance $146-152M (+3-6%). 
- **Margin Expansion**: 2024 adjusted EBITDA $53.2M, Q4 gross margin 18.5%. 
- **Gas Price Catalyst**: $4+ natural gas prices to drive 2025 recovery in Appalachia/Haynesville. 
- **Tech Leadership**: New Pincer frac plug cuts drill-out time by 50%, Stinger dissolvable plugs for extended laterals. 
- **Cost Discipline**: 2024 G&A down 18%, 2025 CapEx $15-25M focused on R&D. 
- **Tariff Risk**: Potential steel/cement cost pass-through to customers if tariffs remain.

**【CEO Business Overview】**
- **2024 Performance**: Total revenue $554.1M, adjusted EBITDA $53.2M. Q4 revenue $141.4M (up 2% QoQ), adjusted EBITDA $14.1M (flat QoQ). 
- **Strategy Execution**: 
  - **Cost Reduction**: 2024 G&A expenses down 18% to $51.3M. 
  - **Market Share Gain**: Cementing revenue +20% YoY, market share +14% to 19% in key basins. 
  - **Tech Innovation**: New Pincer hybrid frac plug cuts drill-out time by 50%, Stinger dissolvable plugs for extended laterals. 
- **2025 Outlook**: Q1 revenue guidance $146-152M (up 3-6% vs Q4), driven by cementing (+7% QoQ) and tools (+6% QoQ). Natural gas price recovery ($2.19 avg 2024 → $4+ in 2025) to boost gas-levered basins. 

**【CFO Financial Highlights】**
- **Liquidity**: $52.1M total cash as of Q4, $27.9M cash on hand. 
- **Margins**: Q4 gross margin 18.5% (vs 17.2% Q3), driven by cementing ($54.8M rev, +7% QoQ). 
- **CapEx**: 2024 spend $14.6M, 2025 guidance $15-25M for R&D facilities. 
- **Cash Flow**: 2024 operating cash flow $13.2M, DSO 55.9 days. 

**【Q&A Key Takeaways】**
- **Tariff Impact**: Service sector likely to pass through steel/cement cost increases to customers. 
- **Gas Market Recovery**: Appalachia/Haynesville activity expected to resume in Q2+ with $4+ gas prices. 
- **Oil Price Sensitivity**: Permian activity stable at $65-70/bbl, potential pullback below $60. 
- **International Growth**: 2025 tools revenue expected to grow YoY, Norway R&D expansion. 
- **Board Refresh**: New directors with AI/energy expertise to drive innovation and ESG strategy.

Nine Energy Service (NINE)-6 Mar 25-2024 Q4 Earnings call transcript

Nine Energy Service (NINE)-1 Nov 24-2024 Q3 Earnings call transcript

Nine Energy Service (NINE)-6 Aug 24-2024 Q2 Earnings call transcript

- **Q1 Performance**: Revenue ($142.1M) within guidance, EBITDA up 11% to $15M. Coiled tubing revenue +11% on 41% more days worked.
- **Gas Price Impact**: Q2 outlook ($130M-$140M) reflects 34% revenue exposure to gas-levered basins amid <$2/MMBtu prices.
- **Cementing Pressure**: Q1 pricing decline offset by 14% wireline stage growth; pricing pressure stabilized but persists.
- **International Expansion**: 4-5% annual revenue from Middle East/Argentina, with no supply chain bottlenecks.
- **Refrac Growth**: Niche market with 2023 growth; Nine is a leading US provider of refrac solutions.

**【CEO Summary】**
- Q1 2024 revenue of $142.1 million was within the upper range of guidance ($135M-$145M), with adjusted EBITDA of $15 million (11% margin). 
- Coiled tubing days worked increased 41%, driving 11% revenue growth in this segment. Permian demand was supplemented by equipment redeployment from Haynesville.
- Pricing pressure in cementing and flat rig count led to flat completion revenue. 
- Gas price decline (<$2/MMBtu) caused expected Q2 slowdown in Northeast/Haynesville activity (34% of 2023 revenue), though oil markets remain stable.
- Q2 revenue outlook: $130M-$140M, with lower EBITDA margin due to gas basin underperformance.

**【CFO Financial Commentary】**
- Cash balance of $10.2 million (total liquidity $37.5M) after $19.5M interest payment and $5.6M CapEx. ATM program unused; no excess cash flow offer.
- Q1 metrics: 943 cementing jobs (-3%), 6,486 wireline stages (+14%), 28,074 completion stages (+4%).
- Coiled tubing utilization 63%, with day rate down 21% but revenue up 11%.
- G&A expenses $12.3 million, D&A $9.5 million. 2024 CapEx guide unchanged ($15M-$25M), flexible based on gas price recovery.

**【Q&A Highlights】**
- **International Growth**: 4-5% annual revenue (~$6M-$7M), lumpy but expanding in Middle East (UAE/Saudi) and Argentina. No capacity constraints.
- **Cementing Pricing**: Broad-based pressure across basins, stabilized in Q2 but expected to persist. 
- **Refrac Market**: Growing niche with 2023 growth; Nine is one of few US providers. Operators view refracs as cleaner, cost-effective production method.
- **2025 Outlook**: Potential duct builds in Haynesville could drive 2025 activity surge if gas prices recover.


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