HOUSTON, Nov. 8, 2021 /PRNewswire/ -- NexTier
Oilfield Solutions Inc. (NYSE: NEX) ("NexTier" or the "Company")
today reported third quarter 2021 financial and operational
results.
Third Quarter 2021 Results & Recent Highlights
- Generated total revenue of $393.2
million in Q3 2021, reflecting an increase of 35% compared
to Q2 2021
- Reported net loss of $44.0
million in Q3 2021, compared to net loss of $31.8 million in the prior quarter
- Adjusted net loss of $24.3
million in Q3 2021, compared to adjusted net loss of
$41.7 million in the prior
quarter
- Reported adjusted EBITDA(1) of $27.8 million in Q3 2021, compared to
$5.3 million in Q2 2021
- Averaged 25 deployed and 24 fully-utilized fleets in Q3 2021
vs. 20 deployed and 18 fully-utilized fleets in Q2 2021
- Exited Q3 2021 with 31 deployed fleets with 1 additional
staffed fleet ready for Q4 2021 deployment
- Ended Q3 2021 with total liquidity of $289.6 million, including $135.5 million of cash; no debt maturities until
2025
- Completed the acquisition of Alamo Pressure Pumping, LLC on
August 31, 2021
Management Commentary
"We are pleased with our performance in the third quarter, and
the recent acquisition of Alamo Pressure Pumping is already having
a positive impact on our business," said Robert Drummond, President and Chief Executive
Officer of NexTier. "Commodity prices and economic activity
continued to improve throughout the third quarter, and demand for
completions services again increased. For the second quarter in a
row, legacy NexTier revenue grew faster than overall demand, and
this rapid growth has now started to translate to higher
profitability. We exited the third quarter with momentum, hitting
our goal for $18-20 million of
adjusted EBITDA in the month of September, and October was better
still. Pricing discussions with customers have become increasingly
constructive, and we are confident that we see a path towards
better pricing and utilization heading into 2022."
"Including one month of Alamo,
NexTier achieved sequential revenue growth of 35%, with legacy
NexTier revenue up 23% quarter-over-quarter," said Kenny Pucheu, Executive Vice President - Chief
Financial Officer of NexTier. "COVID related delays and supply
chain inefficiencies did have some impact on third quarter results.
Nevertheless, our investment in building a strong internal
logistics capability and the great work of our team limited the
downside, and we are confident we have the right strategy in place
to continue managing these challenges. Profitability improved
throughout the quarter as we gathered momentum from a number of
factors, such as operating efficiency and less calendar white space
later in the quarter, declining fleet start-up costs, and the
inclusion of one month of Alamo
operating results and the corresponding significant fixed cost
absorption."
Third Quarter 2021 Financial Results
Revenue totaled $393.2 million in
the third quarter of 2021, compared to $292.1 million in the second quarter of 2021. The
sequential improvement in revenue was driven by the inclusion of
one month of Alamo as well as
increased activity levels and added capacity in all business
lines.
Net loss totaled $44.0 million, or
$0.20 per diluted share, in the
third quarter of 2021, compared to $31.8
million, or $0.15 per diluted
share in the second quarter of 2021. Adjusted net
loss(1) totaled $24.3
million, or $0.11 per diluted
share, in the third quarter of 2021, compared to adjusted net loss
of $41.7 million, or $0.19 per diluted share, in the second quarter of
2021.
Selling, general and administrative expense ("SG&A") totaled
$37.5 million in the third quarter of
2021, compared to SG&A of $20.7
million in the second quarter of 2021. Adjusted
SG&A(1) totaled $22.8
million in the third quarter of 2021, compared to Adjusted
SG&A of $20.1 million in the
second quarter of 2021.
Adjusted EBITDA(1) totaled $27.8 million in the third quarter of 2021,
compared to adjusted EBITDA of $5.3
million in the second quarter of 2021.
Third Quarter 2021 Management Adjustments
EBITDA(1) for the third quarter was $8.0 million. When excluding net management
adjustments of $19.7 million,
adjusted EBITDA for the third quarter was $27.8 million. Management adjustments included
$7.4 million in stock compensation
expense, $5.9 million in contingent
liability related to the Basic Energy Services bankruptcy filing,
and $4.8 million in transaction and
integration expenses largely associated with the Alamo acquisition. Approximately $8.7 million of total net management
adjustments were cash, mostly related to the acquisition costs and
litigation expense.
Completion Services
Revenue in our Completion Services segment totaled $366.1 million in the third quarter of 2021,
compared to $268.8 million in the
second quarter of 2021. The sequential increase was primarily
driven by the inclusion of one month of Alamo as well as increased activity in all
completions product and services lines, increased efficiency, and
new fleet deployments. Adjusted Gross Profit totaled $46.2 million in the third quarter of 2021,
compared to $20.4 million in the
second quarter of 2021.
During the third quarter the Company deployed a net 2 additional
fleets. After accounting for the formation of a Simulfrac fleet and
including the acquisition of Alamo, the Company exited the third quarter
with 31 deployed fleets. For the quarter and including one month of
Alamo operations, the Company
operated an average of 25 deployed fleets and 24 fully-utilized
fleets, an increase from 20 and 18, respectively, in the second
quarter. When taking only fracturing and integrated wireline into
account, annualized Adjusted Gross Profit(1) per
fully-utilized fracturing fleet totaled $7.3 million in the third quarter of 2021,
compared to $4.0 million in the
second quarter of 2021.
Well Construction and Intervention Services
Revenue in our Well Construction and Intervention ("WC&I")
Services segment, totaled $27.1
million in the third quarter of 2021, compared to
$23.3 million in the second quarter
of 2021. The sequential improvement was primarily driven by
increased customer activity in both our Coil Tubing and Cement
product lines. Adjusted Gross Profit totaled $2.9 million in the third quarter of 2021,
compared to Adjusted Gross Profit of $2.8
million in the second quarter of 2021.
Balance Sheet and Capital
Total debt outstanding as of September
30, 2021 was $373.0 million, net of debt discounts and
deferred finance costs and excluding lease obligations and
including a $39.4 million equipment
financing loan secured during Q3 2021. As of September 30, 2021, total available liquidity was
$289.6 million, comprised of
cash of $135.5 million, and
$154.1 million of available
borrowing capacity under our asset-based credit facility.
Total cash used in operating activities during the third quarter
of 2021 was $10.7 million and cash
used in investing activities, excluding cash used in acquisition of
business, was $42.5 million,
resulting in a free cash flow(1) use of $53.2 million in the third quarter of 2021.
Acquisition of Alamo Pressure Pumping
On August 31, 2021, NexTier
announced that it had completed the transaction to acquire 100% of
the equity interests of Alamo Pressure Pumping, LLC ("Alamo"). NexTier's operating results for the
third quarter include the post-acquisition one month of
operating results of Alamo. For
additional information related to the acquisition, please reference
the Company's press releases issued August
4 and 31, 2021, which are available on the Press Releases
section of NexTier's Investor website at
https://investors.nextierofs.com/ir-press-releases. Additionally,
an investor presentation detailing the transaction is available on
the Presentations section of the Investor website at
https://investors.nextierofs.com/ir-home.
Outlook
For the fourth quarter of 2021, NexTier expects to operate an
average of 30 deployed frac fleets. The Company intends to deploy
one additional upgraded Tier IV DGB frac fleet for a returning
customer by the end of the fourth quarter and exit the quarter with
31 frac fleets deployed.
Based on the above deployed fleets including a full quarter of
Alamo operating results versus
just one month in the third quarter, we anticipate significantly
improved results in the fourth quarter relative to the third
quarter commensurate with the increase in active fleet count on a
quarter-over-quarter basis, plus the additional benefit of
significant fixed cost absorption and some modest price
increases.
Fourth quarter capex is expected to approximate $50 million, including the strategic investments
in additional dual fuel conversions and the continued deployment of
capital for our new Power Solutions business. We anticipate a
significant cash inflow from asset sales during the fourth quarter
will help partially offset the capex.
"We continue to see a positive demand backdrop for US onshore
completion services as we head into 2022," added Robert Drummond. "We have counter-cyclically
invested in next generation, low cost, low carbon frac solutions,
which we believe will put our assets in high-demand in the coming
cycle. Our upgrade program should largely be completed by the end
of 2021 and we are shifting the Company's priorities to free cash
flow generation."
Conference Call Information
On November 9, 2021, NexTier will
hold a conference call for investors at 7:30
a.m. Central Time (8:30 a.m. Eastern
Time) to discuss third quarter 2021 financial and operating
results. Hosting the call will be management of NexTier, including
Robert Drummond, President and Chief
Executive Officer and Kenny Pucheu,
Executive Vice President and Chief Financial Officer. The call can
be accessed via a live webcast accessible on the IR Event Calendar
page in the Investor Relations section of our website at
www.nextierofs.com or live over the telephone by dialing (855)
560-2574, or for international callers, (412) 542-4160. A replay
will be available shortly after the call and can be accessed by
dialing (877) 344-7529, or for international callers, (412)
317-0088. The passcode for the telephonic replay is 10161267 and
will be available until November 16,
2021. An archive of the webcast will be available shortly
after the call on our website at www.nextierofs.com for twelve
months following the call.
About NexTier Oilfield Solutions
Headquartered in Houston,
Texas, NexTier is an industry-leading U.S. land oilfield
service company, with a diverse set of well completion and
production services across active and demanding basins. Our
integrated solutions approach delivers efficiency today, and our
ongoing commitment to innovation helps our customers better address
what is coming next. NexTier is differentiated through four points
of distinction, including safety performance, efficiency,
partnership and innovation. At NexTier, we believe in living
our core values from the basin to the boardroom, and helping
customers win by safely unlocking affordable, reliable and
plentiful sources of energy.
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(1)
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Non-GAAP Financial
Measures. The Company has included in this press release or
discussed on the conference call described above certain non-GAAP
financial measures, some of which are calculated on segment basis
or product line basis. These measurements provide supplemental
information which the Company believes is useful to analysts and
investors to evaluate its ongoing results of operations, when
considered alongside GAAP measures such as net income and operating
income.
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Non-GAAP financial
measures include EBITDA, Adjusted EBITDA, Adjusted Gross Profit,
Adjusted Net Income (loss), free cash flow, adjusted free cash
flow, Adjusted SG&A, and annualized adjusted gross profit per
fully-utilized fracturing fleet. These non-GAAP financial measures
exclude the financial impact of items management does not consider
in assessing the Company's ongoing operating performance, and
thereby facilitate review of the Company's operating performance on
a period-to-period basis. Other companies may have different
capital structures, and comparability to the Company's results of
operations may be impacted by the effects of acquisition accounting
on its depreciation and amortization. As a result of the
effects of these factors and factors specific to other companies,
the Company believes EBITDA, Adjusted EBITDA, Adjusted Gross
Profit, Adjusted SG&A, and Adjusted Net Income(loss) provide
helpful information to analysts and investors to facilitate a
comparison of its operating performance to that of other
companies. The Company believes free cash flow and Adjusted
free cash flow is important to investors in that it provides a
useful measure to assess management's effectiveness in the areas of
profitability and capital management. Annualized Adjusted
Gross Profit per fully-utilized fracturing fleet is used to
evaluate the operating performance of the business line for
comparable periods, and the Company believes it is important as an
indicator of operating performance of our fracturing and integrated
wireline product line because it excludes the effects of the
capital structure and certain non-cash items from the product
line's operating results. For a reconciliation of these
non-GAAP measures, please see the tables at the end of this press
release. Reconciliations of forward-looking non-GAAP financial
measures to comparable GAAP measures are not available due to the
challenges and impracticability with estimating some of the items,
particularly with estimates for certain contingent liabilities, and
estimating non-cash unrealized fair value losses and gains which
are subject to market variability and therefore a reconciliation is
not available without unreasonable effort.
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Non-GAAP Measure
Definitions: EBITDA is defined as net income (loss) adjusted to
eliminate the impact of interest, income taxes, depreciation and
amortization. Adjusted EBITDA is defined as net income (loss)
adjusted to eliminate the impact of interest, income taxes,
depreciation and amortization, along with certain items management
does not consider in assessing ongoing performance. Adjusted Gross
Profit is defined as revenue less cost of services, further
adjusted to eliminate items in cost of services that management
does not consider in assessing ongoing performance. Adjusted Gross
Profit at the segment level is not considered to be a non-GAAP
financial measure as it is our segment measure of profit or loss
and is required to be disclosed under GAAP pursuant to ASC 280.
Adjusted Net Income (Loss) is defined as net income (loss) plus the
after-tax amount of merger/transaction-related costs and other
non-routine items. Adjusted SG&A is defined as selling, general
and administrative expenses adjusted for severance and business
divestiture costs, merger/transaction-related costs, and other
non-routine items. Free cash flow is defined as the net increase
(decrease) in cash and cash equivalents before financing
activities, including share repurchase activity. Adjusted free cash
flow adjusts free cash flow for certain management adjustments.
Annualized Adjusted Gross Profit per fully-utilized fleet, is a
non-GAAP measure and is defined as (i) revenue less cost of
services attributable to the fracturing and integrated wireline
product line, further adjusted to eliminate items in cost of
services that management does not consider in assessing ongoing
performance for the fracturing and integrated wireline product
line, (ii) divided by the fully-utilized fracturing and integrated
wireline fleets (average deployed fleets multiplied by fleet
utilization) per quarter, and then (iii) multiplied by
four.
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Forward-Looking Statements and Where to Find Additional
Information
This press release and discussion in the conference call
described above contains forward-looking statements within the
meaning of the Private Securities Litigation Reform Act of 1995
that are subject to risks and uncertainties and are made pursuant
to the safe harbor provisions of Section 27A of the Securities Act
of 1993, as amended and Section 21E of the Securities Exchange Act
of 1934, as amended. Where a forward-looking statement expresses or
implies an expectation or belief as to future events or results,
such expectation or belief is expressed in good faith and believed
to have a reasonable basis. The words "believe," "continue,"
"could," "expect," "anticipate," "intends," "estimate," "forecast,"
"project," "should," "may," "will," "would" or the negative thereof
and similar expressions are intended to identify such
forward-looking statements. These forward-looking statements are
only predictions and involve known and unknown risks and
uncertainties, many of which are beyond the Company's control.
Statements in this press release or made during the conference call
described above regarding NexTier, Alamo and the combined company that are
forward-looking, including projections as to the Company's 2021
guidance and outlook information, projections as to the number of
fleets and other anticipated benefits of the proposed transaction,
the impact of the proposed transaction on NexTier's and
Alamo's business and future
financial and operating results, and the amount and timing of
synergies from the proposed transaction are based on management's
estimates, assumptions and projections, and are subject to
significant uncertainties and other factors, many of which are
beyond NexTier's and Alamo's
control. These factors and risks include, but are not limited to,
(i) the competitive nature of the industry in which NexTier and
Alamo conduct their business,
including pricing pressures; (ii) the ability to meet rapid demand
shifts; (iii) the impact of pipeline capacity constraints and
adverse weather conditions in oil or gas producing regions; (iv)
the ability to obtain or renew customer contracts and changes in
customer requirements in the markets NexTier and Alamo serve; (v) the ability to identify,
effect and integrate acquisitions, joint ventures or other
transactions; (vi) the ability to protect and enforce intellectual
property rights; (vii) the effect of environmental and other
governmental regulations on NexTier and Alamo operations; (viii) the effect of a loss
of, or interruption in operations of, NexTier or Alamo operations, or of one or more key
suppliers, or customers, including resulting from inflation,
COVID-19 resurgence, product defects, recalls or suspensions; (ix)
the variability of crude oil and natural gas commodity prices; (x)
the market price (including inflation) and timely availability of
materials or equipment; (xi) the ability to obtain permits,
approvals and authorizations from governmental and third parties;
(xii) NexTier's and Alamo's
ability to employ a sufficient number of skilled and qualified
workers; (xiii) the level of, and obligations associated with,
indebtedness; (xiv) fluctuations in the market price of NexTier's
stock; (xv) the duration (including resurgences), impact and
severity of the COVID-19 pandemic and the response thereto,
including the impact of social distancing, shelter-in-place or
shutdowns of non-essential businesses and similar measures imposed
or undertaken by governments, private businesses or others
(including the economic, administrative, and social impacts of mask
or vaccine mandates), and the possibility of increased inflation,
travel restrictions, lodging shortages or other macro-economic
challenges as the economy emerges from the COVID-19 pandemic; and
(xv) other risk factors and additional information. In addition,
material risks that could cause actual results to differ from
forward-looking statements include: the inherent uncertainty
associated with financial or other projections; the effective
integration of Alamo's businesses
and the ability to achieve the anticipated synergies and
value-creation contemplated by the proposed transaction;
unanticipated difficulties or expenditures relating to the
transaction, the response or retention of customers and vendors as
a result of the announcement and/or closing of the transaction; and
the diversion of management time on transaction-related issues. For
a more detailed discussion of such risks and other factors, see the
Company's filings with the Securities and Exchange Commission (the
"SEC"), including under the heading "Risk Factors" in Item 1A of
the Company's Annual Report on Form 10-K for the fiscal year ended
December 31, 2020, available on the
SEC website or www.NexTierOFS.com. The Company assumes no
obligation to update any forward-looking statements or information,
which speak as of their respective dates, to reflect events or
circumstances after the date hereof, or to reflect the occurrence
of unanticipated events, except as may be required under applicable
securities laws. Investors should not assume that any lack of
update to a previously issued "forward-looking statement"
constitutes a reaffirmation of that statement.
Additional information about the Company, including information
on the Company's response to the coronavirus, can be found in its
periodic reports that are filed with the SEC, available www.sec.gov
or www.NexTierOFS.com.
Investor Contact:
Kenneth Pucheu
Executive Vice President - Chief Financial Officer
Michael Sabella
Vice President - Investor Relations and Business Development
michael.sabella@nextierofs.com
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NEXTIER OILFIELD
SOLUTIONS INC. AND SUBSIDIARIES
|
|
CONDENSED
CONSOLIDATED STATEMENTS OF OPERATIONS
|
|
(unaudited, amounts
in thousands, except per share data)
|
|
|
Three Months
Ended
|
|
September
30, 2021
|
|
June 30,
2021
|
|
|
|
|
|
Revenue
|
$
|
393,164
|
|
|
$
|
292,145
|
|
|
Operating costs and
expenses:
|
|
|
|
|
Cost of
services
|
344,637
|
|
|
269,260
|
|
|
Depreciation and
amortization
|
44,861
|
|
|
40,671
|
|
|
Selling, general and
administrative expenses
|
37,453
|
|
|
20,734
|
|
|
Merger and
integration
|
4,752
|
|
|
178
|
|
|
Gain on disposal of
assets
|
(1,133)
|
|
|
(2,017)
|
|
|
Total operating costs
and expenses
|
430,570
|
|
|
328,826
|
|
|
Operating
loss
|
(37,406)
|
|
|
(36,681)
|
|
|
Other income
(expense):
|
|
|
|
|
Other income
(expense), net
|
585
|
|
|
11,247
|
|
|
Interest expense,
net
|
(6,701)
|
|
|
(5,726)
|
|
|
Total other income
(expense)
|
(6,116)
|
|
|
5,521
|
|
|
Loss before income
taxes
|
(43,522)
|
|
|
(31,160)
|
|
|
Income tax
expense
|
(472)
|
|
|
(621)
|
|
|
Net
loss
|
$
|
(43,994)
|
|
|
$
|
(31,781)
|
|
|
|
|
|
|
Net loss per share:
basic
|
$
|
(0.20)
|
|
|
$
|
(0.15)
|
|
|
Net loss per share:
diluted
|
$
|
(0.20)
|
|
|
$
|
(0.15)
|
|
|
|
|
|
|
Weighted-average
shares: basic
|
224,481
|
|
|
215,443
|
|
|
Weighted-average
shares: diluted
|
224,481
|
|
|
215,443
|
|
|
NEXTIER OILFIELD
SOLUTIONS INC. AND SUBSIDIARIES
|
|
CONSOLIDATED
BALANCE SHEETS
|
|
(unaudited, amounts
in thousands)
|
|
|
|
September
30,
|
|
December
31,
|
|
|
2021
|
|
2020
|
|
ASSETS
|
|
|
|
|
|
Current
assets:
|
|
|
|
|
|
Cash and cash
equivalents
|
|
$
|
135,525
|
|
|
$
|
275,990
|
|
|
Trade and other
accounts receivable, net
|
|
265,388
|
|
|
122,584
|
|
|
Inventories,
net
|
|
38,108
|
|
|
30,068
|
|
|
Assets held for
sale
|
|
6,495
|
|
|
126
|
|
|
Prepaid and other
current assets
|
|
51,352
|
|
|
58,011
|
|
|
Total current
assets
|
|
496,868
|
|
|
486,779
|
|
|
Operating lease
right-of-use assets
|
|
22,980
|
|
|
37,157
|
|
|
Finance lease
right-of-use assets
|
|
35,746
|
|
|
1,132
|
|
|
Property and equipment,
net
|
|
592,112
|
|
|
470,711
|
|
|
Goodwill
|
|
192,446
|
|
|
104,198
|
|
|
Intangible
assets
|
|
69,527
|
|
|
51,182
|
|
|
Other noncurrent
assets
|
|
8,296
|
|
|
6,729
|
|
|
Total
assets
|
|
$
|
1,417,975
|
|
|
$
|
1,157,888
|
|
|
LIABILITIES AND
STOCKHOLDERS' EQUITY
|
|
|
|
|
|
Current
liabilities:
|
|
|
|
|
|
Accounts
payable
|
|
$
|
179,203
|
|
|
$
|
61,259
|
|
|
Accrued
expenses
|
|
222,720
|
|
|
134,230
|
|
|
Customer contract
liabilities
|
|
26,798
|
|
|
266
|
|
|
Current maturities of
operating lease liabilities
|
|
8,725
|
|
|
18,551
|
|
|
Current maturities of
finance lease liabilities
|
|
10,438
|
|
|
606
|
|
|
Current maturities of
long-term debt
|
|
11,186
|
|
|
2,252
|
|
|
Other current
liabilities
|
|
2,543
|
|
|
2,993
|
|
|
Total current
liabilities
|
|
461,613
|
|
|
220,157
|
|
|
Long-term operating
lease liabilities, less current maturities
|
|
20,580
|
|
|
24,232
|
|
|
Long-term finance lease
liabilities, less current maturities
|
|
25,053
|
|
|
504
|
|
|
Long-term debt, net of
unamortized deferred financing costs and unamortized debt discount,
less current maturities
|
|
361,836
|
|
|
333,288
|
|
|
Other non-current
liabilities
|
|
20,722
|
|
|
22,419
|
|
|
Total non-current
liabilities
|
|
428,191
|
|
|
380,443
|
|
|
Total
liabilities
|
|
889,804
|
|
|
600,600
|
|
|
Stockholders'
equity:
|
|
|
|
|
|
Common
stock
|
|
2,420
|
|
|
2,144
|
|
|
Paid-in capital in
excess of par value
|
|
1,087,618
|
|
|
989,995
|
|
|
Retained
deficit
|
|
(552,018)
|
|
|
(421,741)
|
|
|
Accumulated other
comprehensive loss
|
|
(9,849)
|
|
|
(13,110)
|
|
|
Total stockholders'
equity
|
|
528,171
|
|
|
557,288
|
|
|
Total liabilities
and stockholders' equity
|
|
$
|
1,417,975
|
|
|
$
|
1,157,888
|
|
|
NEXTIER OILFIELD
SOLUTIONS INC. AND SUBSIDIARIES
|
|
ADDITIONAL
SELECTED FINANCIAL AND OPERATING DATA
|
|
(unaudited, amounts
in thousands)
|
|
|
Three Months
Ended
|
|
September 30,
2021
|
|
June 30,
2021
|
|
Completion
Services:
|
|
|
|
|
Revenue
|
$
|
366,067
|
|
|
$
|
268,839
|
|
|
Cost of
services
|
320,297
|
|
|
248,585
|
|
|
Depreciation,
amortization, (gain) loss on sale of assets, and
impairment
|
37,593
|
|
|
34,552
|
|
|
Net loss
|
8,177
|
|
|
(14,298)
|
|
|
Adjusted gross
profit(1)
|
$
|
46,184
|
|
|
$
|
20,361
|
|
|
|
|
|
|
Well Construction
and Intervention Services:
|
|
|
|
|
Revenue
|
$
|
27,097
|
|
|
$
|
23,306
|
|
|
Cost of
services
|
24,340
|
|
|
20,675
|
|
|
Depreciation,
amortization, (gain) loss on sale of assets, and
impairment
|
2,034
|
|
|
1,080
|
|
|
Net loss
|
723
|
|
|
1,551
|
|
|
Adjusted gross
profit(1)
|
$
|
2,905
|
|
|
$
|
2,756
|
|
|
|
|
(1)
|
The Company uses
Adjusted gross profit as its measure of profitability for segment
reporting.
|
|
NEXTIER OILFIELD
SOLUTIONS INC. AND SUBSIDIARIES
|
|
NON-GAAP FINANCIAL
MEASURES
|
|
(unaudited, amounts
in thousands)
|
|
|
Three Months
Ended
|
|
September 30,
2021
|
|
June 30,
2021
|
|
March 30,
2021
|
|
Net
loss
|
$
|
(43,994)
|
|
|
$
|
(31,781)
|
|
|
$
|
(54,502)
|
|
|
Interest expense,
net
|
6,701
|
|
|
5,726
|
|
|
4,206
|
|
|
Income tax
expense
|
472
|
|
|
621
|
|
|
857
|
|
|
Depreciation and
amortization
|
44,861
|
|
|
40,671
|
|
|
45,868
|
|
|
EBITDA
|
$
|
8,040
|
|
|
$
|
15,237
|
|
|
$
|
(3,571)
|
|
|
Plus management
adjustments:
|
|
|
|
|
|
|
Acquisition,
integration and expansion(1)
|
4,752
|
|
|
178
|
|
|
—
|
|
|
Non-cash stock
compensation(2)
|
7,350
|
|
|
4,889
|
|
|
5,203
|
|
|
Market-driven
costs(3)
|
578
|
|
|
378
|
|
|
7,295
|
|
|
Divestiture of
business(4)
|
5,927
|
|
|
2,428
|
|
|
(785)
|
|
|
(Gain) loss on equity
security investment(5)
|
522
|
|
|
(1,331)
|
|
|
3,693
|
|
|
Litigation(6)
|
4,000
|
|
|
1,638
|
|
|
2,137
|
|
|
Tax
audit(7)
|
(2,771)
|
|
|
(8,778)
|
|
|
(13,328)
|
|
|
Insurance
recovery(8)
|
(723)
|
|
|
(9,686)
|
|
|
—
|
|
|
Other
|
88
|
|
|
347
|
|
|
25
|
|
|
Adjusted
EBITDA
|
$
|
27,763
|
|
|
$
|
5,300
|
|
|
$
|
669
|
|
|
|
|
|
|
|
|
|
|
(1)
|
Represents
transaction and integration costs related to
acquisitions.
|
|
(2)
|
Represents non-cash
amortization of equity awards issued under the Company's Incentive
Award Plan.
|
|
(3)
|
Represents
market-driven severance, leased facility closures, and
restructuring costs incurred as a result of significant declines in
crude oil prices resulting from demand destruction from the
COVID-19 pandemic and global oversupply.
|
|
(4)
|
Represents the gain
on final cash settlement of the Basic Notes, bad debt expense and
contingent liability recognized in the second and third quarters of
2021 on the divestiture of the Well Support Services segment to,
and related to the bankruptcy filing of, Basic Energy
Services.
|
|
(5)
|
Represents the
realized and unrealized (gain) loss on an equity security
investment composed primarily of common equity shares in a public
company.
|
|
(6)
|
Represents increases
in accruals related to contingencies acquired in business
acquisitions or exceptional material events.
|
|
(7)
|
Represents a
reduction of the Company's accrual related to a tax audits acquired
in business acquisitions.
|
|
(8)
|
Represents a gain on
insurance recovery in excess of book value due to a fire
incident.
|
|
NEXTIER OILFIELD
SOLUTIONS INC. AND SUBSIDIARIES
|
|
NON-GAAP FINANCIAL
MEASURES
|
|
(unaudited, amounts
in thousands)
|
|
|
|
Three Months
Ended
September 30, 2021
|
|
Selling, general
and administrative expenses
|
|
$
|
37,453
|
|
|
Less management
adjustments:
|
|
|
|
Non-cash stock
compensation
|
|
(7,350)
|
|
|
Market-driven
costs
|
|
(16)
|
|
|
Litigation
|
|
(4,000)
|
|
|
Tax audit
|
|
2,771
|
|
|
Divestiture of
business
|
|
(5,927)
|
|
|
Other
|
|
(88)
|
|
|
Adjusted selling,
general and administrative expenses
|
|
$
|
22,843
|
|
|
|
|
|
Three Months
Ended
June 30, 2021
|
|
Selling, general
and administrative expenses
|
|
$
|
20,734
|
|
|
Less management
adjustments:
|
|
|
|
Non-cash stock
compensation
|
|
(4,889)
|
|
|
Market-driven
costs
|
|
(146)
|
|
|
Litigation
|
|
(1,638)
|
|
|
Tax audit
|
|
8,778
|
|
|
Divestiture of
business
|
|
(2,428)
|
|
|
Other
|
|
(347)
|
|
|
Adjusted selling,
general and administrative expenses
|
|
$
|
20,064
|
|
|
NEXTIER OILFIELD
SOLUTIONS INC. AND SUBSIDIARIES
|
|
NON-GAAP FINANCIAL
MEASURES
|
|
(unaudited, amounts
in thousands)
|
|
|
Three Months Ended
September 30, 2021
|
|
Completion
Services
|
|
WC&I
|
|
Total
|
|
Revenue
|
$
|
366,067
|
|
|
$
|
27,097
|
|
|
$
|
393,164
|
|
|
Cost of
services
|
320,297
|
|
|
24,340
|
|
|
344,637
|
|
|
Gross profit
excluding depreciation and amortization
|
45,770
|
|
|
2,757
|
|
|
48,527
|
|
|
Management
adjustments associated with cost of services
|
414
|
|
|
148
|
|
|
562
|
|
|
Adjusted gross
profit
|
$
|
46,184
|
|
|
$
|
2,905
|
|
|
$
|
49,089
|
|
|
|
|
Three Months Ended
June 30, 2021
|
|
Completion
Services
|
|
WC&I
|
|
Total
|
|
Revenue
|
$
|
268,839
|
|
|
$
|
23,306
|
|
|
$
|
292,145
|
|
|
Cost of
services
|
248,585
|
|
|
20,675
|
|
|
269,260
|
|
|
Gross profit
excluding depreciation and amortization
|
20,254
|
|
|
2,631
|
|
|
22,885
|
|
|
Management
adjustments associated with cost of services
|
107
|
|
|
125
|
|
|
232
|
|
|
Adjusted gross
profit
|
$
|
20,361
|
|
|
$
|
2,756
|
|
|
$
|
23,117
|
|
|
|
Three Months
Ended
|
|
|
September 30,
2021
|
|
|
Frac &
Integrated Wireline
|
|
Revenue
|
|
$
|
339,305
|
|
|
Cost of
services
|
|
$
|
295,971
|
|
|
Gross profit
excluding depreciation and amortization
|
|
43,334
|
|
|
Management
adjustments associated with cost of services
|
|
$
|
382
|
|
|
Adjusted gross
profit
|
|
$
|
43,716
|
|
|
|
|
|
Average hydraulic
fracturing fleets deployed
|
|
$
|
25
|
|
|
Fully-utilized
hydraulic fracturing fleets
|
|
$
|
24
|
|
|
Annualized adjusted
gross profit per fully-utilized fleet
|
|
$
|
7,286
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
|
June 30,
2021
|
|
|
Frac &
Integrated Wireline
|
|
Revenue
|
|
$
|
239,176
|
|
|
Cost of
services
|
|
221,162
|
|
|
Gross profit
excluding depreciation and amortization
|
|
18,014
|
|
|
Management
adjustments associated with cost of services
|
|
96
|
|
|
Adjusted gross
profit
|
|
$
|
18,110
|
|
|
|
|
|
Average hydraulic
fracturing fleets deployed
|
|
20
|
|
|
Fully-utilized
hydraulic fracturing fleets
|
|
18
|
|
|
Annualized adjusted
gross profit per fully-utilized fleet
|
|
$
|
4,024
|
|
|
NEXTIER OILFIELD
SOLUTIONS INC. AND SUBSIDIARIES
|
|
NON-GAAP FINANCIAL
MEASURES
|
|
(unaudited, amounts
in thousands)
|
|
|
|
Three Months
Ended
|
|
|
September 30,
2021
|
|
Net cash used in
operating activities
|
|
$
|
(10,721)
|
|
|
Net cash used in
investing activities(1)
|
|
(42,470)
|
|
|
Free cash
flow
|
|
(53,191)
|
|
|
|
|
|
|
Three Months
Ended
|
|
|
June 30,
2021
|
|
Net cash used by
operating activities
|
|
$
|
14,627
|
|
|
Net cash used in
investing activities(2)
|
|
(31,483)
|
|
|
Free cash
flow
|
|
(16,856)
|
|
|
|
|
(1)
|
Excludes $99.3
million from the Alamo acquisition.
|
|
(2)
|
Excludes $2.5 million
from Q2 2021 Completions acquisition.
|
|
Three Months
Ended
|
|
September 30,
2021
|
|
Net loss
|
$
|
(43,994)
|
|
|
Plus management
adjustments:
|
|
|
Acquisition,
integration and expansion
|
4,752
|
|
|
Non-cash stock
compensation
|
7,350
|
|
|
Market-driven
costs
|
578
|
|
|
Divestiture of
business
|
5,927
|
|
|
(Gain) loss on equity
security investment
|
522
|
|
|
Litigation
|
4,000
|
|
|
Tax audit
|
(2,771)
|
|
|
Insurance
recovery
|
(723)
|
|
|
Other
|
88
|
|
|
Adjusted net
loss
|
$
|
(24,271)
|
|
|
|
|
Adjusted net loss per
share, basic and diluted
|
$
|
(0.11)
|
|
|
|
|
Weighted-average
shares, basic and diluted
|
224,481
|
|
|
NEXTIER OILFIELD
SOLUTIONS INC. AND SUBSIDIARIES
|
|
NON-GAAP FINANCIAL
MEASURES
|
|
(unaudited, amounts
in thousands)
|
|
|
Three Months
Ended
|
|
June 30,
2021
|
|
Net loss
|
$
|
(31,781)
|
|
|
Plus management
adjustments:
|
|
|
Acquisition,
integration and expansion
|
178
|
|
|
Non-cash stock
compensation
|
4,889
|
|
|
Market-driven
costs
|
378
|
|
|
Divestiture of
business
|
2,428
|
|
|
Gain (loss) on equity
security investment
|
(1,331)
|
|
|
Litigation
|
1,638
|
|
|
Tax audit
|
(8,778)
|
|
|
Insurance
recovery
|
(9,686)
|
|
|
Other
|
347
|
|
|
Adjusted net
loss
|
$
|
(41,718)
|
|
|
|
|
Adjusted net loss per
share, basic and diluted
|
$
|
(0.19)
|
|
|
|
|
Weighted-average
shares, basic and diluted
|
215,443
|
|
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SOURCE NexTier Oilfield Solutions