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

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