HOUSTON — Nine Energy Service, Inc. (“Nine” or the “Company”) (NYSE: NINE) reported first quarter 2025 revenues of $150.5 million, net loss of $(7.1) million, or $(0.18) per diluted share, and adjusted EBITDA of $16.5 million. The strong performance coincided with the Company’s May 1, 2025 closing of a new $125 million senior secured ABL revolving credit facility.
On May 1, 2025, the Company closed on a new revolving credit facility with White Oak Commercial Finance. The new credit agreement provides for an asset-based revolving credit facility with lender commitments of $125 million and an uncommitted accordion of up to $50 million. Borrowings under the new revolving credit facility will mature on the earlier of May 1, 2028 and the date that is 91 days prior to the maturity date of the Company’s senior secured notes. The new revolving credit facility refinanced and replaced the Company’s previous revolving credit facility, which would have matured in January 2027.
“We recently closed on our new $125 million asset-based revolving credit facility which immediately improves our liquidity and extended our revolving credit maturity,” said Ann Fox, President and Chief Executive Officer, Nine Energy Service. “This new facility increases our financial flexibility, and we are confident that it will help drive value for the Company and our shareholders moving forward.”
Despite the average US rig count remaining flat quarter over quarter, Nine increased revenue by approximately 6%, with results in the upper end of the Company’s original first quarter 2025 revenue guidance between $146.0 and $152.0 million. Sequential quarterly net loss improved and decreased by approximately 20% for the first quarter of 2025, while sequential quarterly adjusted EBITDA increased by approximately 17%.
“We had a strong quarter relative to the market as we continued to execute our strategy of market share gains and cost reductions,” Fox said. “Despite a flat US rig count in Q1, we were able to grow revenue and profitability, which were driven once again by activity increases in cementing, where we increased revenue quarter over quarter by approximately 4%. Additionally, we did not have the negative impacts of holiday, weather and budget exhaustion we saw in Q4, resulting in more efficient operations and less white space. This was most evident in our coiled tubing division where we were able to increase revenue by approximately 16% quarter over quarter.”
However, Fox cautioned about near-term headwinds: “The recent decline in oil prices, in conjunction with increased costs due to tariffs, has created uncertainty for the energy industry and the timing and totality of these impacts are still unknown. We have begun to see some activity declines, as well as pricing pressure, specifically in the Permian Basin following the decline in oil prices. With what we know today, we anticipate Q2 revenue and earnings will be down compared to Q1.”
As of March 31, 2025, Nine’s total liquidity position was $53.8 million, comprised of $17.3 million in cash and cash equivalents and $36.5 million of availability under the revolving credit facility. Capital expenditures totaled $4.3 million during the first quarter of 2025, with full-year 2025 capex guidance unchanged at $15 to $25 million.
