Q2 2024 Nine Energy Service Inc Earnings Call Transcript
Key Points
- Revenue for the quarter was $132.4 million, within the original guidance of $130 million to $140 million.
- Strong performance in the U.S. refrac business, with over 300 refrac jobs completed to date.
- Dissolvable and composite plugs continue to perform well, with increasing adoption by operators.
- Wireline team maintained flat revenue quarter-over-quarter despite low activity levels in the Northeast.
- Company's asset-light business model allows for quick adaptation to market changes.
- Adjusted EBITDA was $9.7 million, and diluted EPS was negative $0.40, indicating financial challenges.
- Continued rig declines negatively impacted revenue and earnings, with over 40 additional rigs coming out of the market since the end of 2023.
- Cementing revenue was down due to decreased activity and pricing, particularly in the Haynesville and Eagle Ford basins.
- Completion tool revenue decreased due to a reduction in tools sold related to U.S. land activity and a decrease in international sales.
- Coil tubing revenue was down due to white space in completion schedules and sustained activity declines in key regions like the Haynesville.
Greetings, and welcome to Nine Energy Service Second Quarter 2024 Earnings Call. [Operator Instructions] As a reminder, this conference is being recorded. I will now turn it over to Heather Schmidt.
Thank you. Good morning, everyone, and welcome to the Nine Energy Service earnings conference call to discuss our results for the second quarter of 2024. With me today are Ann Fox, President and Chief Executive Officer; and Guy Sirkes, Chief Financial Officer. We appreciate your participation. Some of our comments today may include forward-looking statements reflecting Nine's views about future events. Forward-looking statements are subject to a number of risks and uncertainties, many of which are beyond our control goal. These risks and uncertainties can cause actual results to differ materially from our current expectations. We advise listeners to review our earnings release and the risk factors discussed in our filings with the SEC. We undertake no
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