HOUSTON, July 26,
2022 /PRNewswire/ -- NexTier Oilfield Solutions Inc.
(NYSE: NEX) ("NexTier" or the "Company") today reported second
quarter 2022 financial and operational results.
Second Quarter 2022 Results and Recent Highlights
- Total revenue of $842.9 million,
a 33% sequential increase and 189% year-over-year
- Achieved fifth consecutive quarter of 25%+ revenue growth
- Net income of $68.5 million
($0.27 per diluted share), compared
to $8.8 million ($0.04 per diluted share) in the prior quarter and
net loss of $31.8 million in second
quarter of 2021
- Adjusted net income(1) of $98.5 million ($0.39 per diluted share), compared to
$20.8 million ($0.08 per diluted share) in the prior quarter and
adjusted net loss of $41.7 million in
second quarter of 2021
- Adjusted EBITDA(1) of $165.9
million, compared to $83.5
million in the prior quarter and $5.3
million in second quarter of 2021
- Cash from operations of $117.8
million and positive free cash flow(1) of
$67.4 million
- Exited second quarter of 2022 with total liquidity of
$492.4 million, including
$158.1 million of cash and undrawn
ABL; no term loan maturities until 2025
Management Commentary
"Our operations performed at a high level in the second quarter,
as strong efficiency gains, combined with net pricing improvements
delivered a record quarter for NexTier. The structurally
undersupplied oil and natural gas markets have resulted in robust
demand for our services," commented Robert
Drummond, President and Chief Executive Officer of
NexTier.
"We believe frac fleets are effectively sold-out, and see a
scenario where frac fleet supply will remain a bottleneck for US
land oil and natural gas production growth through 2023 and beyond.
I am excited about the future of NexTier and expect to continue to
deliver strong free cash flow, margin expansion and profitable
growth during what looks to be a sustained up-cycle," stated
Drummond.
"Our adjusted EBITDA doubled, sequentially, driven by strong 33%
top line growth and incrementals(1) of 40%, proving
the success of our strategy early in the cycle," said Kenny Pucheu, Executive Vice President and Chief
Financial Officer of NexTier. "Delivering on our commitments, free
cash flow accelerated in the second quarter and we have line of
sight to further improvements in future periods. Most importantly,
we believe we are in the early stages of a multi-year recovery, and
our fleet enhancing countercyclical investments have strengthened
our position and ability to deliver leading returns."
Second Quarter 2022 Financial Results
Revenue totaled $842.9 million in the second quarter of
2022, compared to $635.0 million
in the first quarter of 2022, and $292.1 million in the second quarter of
2021. The sequential improvement in revenue was primarily driven by
improved net and gross pricing, efficiency gains, continued
progress in our wellsite integration strategy, and the addition of
one fleet late in the first quarter of 2022, as previously
reported, that was fully operational for the entirety of the second
quarter of 2022.
Net income totaled $68.5 million,
or $0.27 per diluted share, in the
second quarter of 2022, compared to net income of $8.8 million, or $0.04 per diluted share, in the first quarter of
2022. Adjusted net income totaled $98.5
million, or $0.39 per diluted
share, in the second quarter of 2022, compared to adjusted net
income of $20.8 million, or
$0.08 per diluted share, in the first
quarter of 2022.
Selling, general and administrative expense ("SG&A") of
$35.9 million in the second
quarter of 2022 was relatively unchanged from the first quarter of
2022. Adjusted SG&A(1) totaled $27.4 million in the second quarter of 2022,
compared to adjusted SG&A of $27.5
million in the first quarter of 2022.
Adjusted EBITDA totaled $165.9
million in the second quarter of 2022, compared to adjusted
EBITDA of $83.5 million in the first
quarter of 2022, and $5.3 million in
the second quarter of 2021.
Second Quarter 2022 Management Adjustments
EBITDA(1) for the second quarter of 2022 was
$135.8 million. When excluding net
management adjustments of $30.1
million, adjusted EBITDA for the second quarter was
$165.9 million. Management
adjustments included $7.5 million in non-cash stock compensation
expense, $23.7 million in
acquisition, integration, and expansion costs mostly related to the
revaluation of the earnout for the Alamo Acquisition, partially
offset by a net $1.2 million in other
adjustments.
Completion Services
Revenue in our Completion Services segment totaled $801.0 million in the second quarter of
2022, compared to $602.6 million in
the first quarter of 2022. Adjusted gross profit(1)
totaled $184.7 million in the
second quarter of 2022, compared to $106.3
million in the first quarter of 2022.
During the second quarter of 2022, the Company did not deploy
any additional horsepower to its Completions Services
fleet.
Well Construction and Intervention Services
Revenue in our Well Construction and Intervention Services
segment, totaled $41.9 million
in the second quarter of 2022, compared to $32.4 million in the first quarter of 2022. The
sequential improvement was primarily driven by increased customer
activity. Adjusted gross profit totaled $8.3
million in the second quarter of 2022, compared to adjusted
gross profit of $4.1 million in the
first quarter of 2022.
Balance Sheet and Capital
Total debt outstanding as of June 30,
2022 was $368.2 million, net
of debt discounts and deferred finance costs and excluding finance
lease obligations. As of June 30,
2022, total available liquidity was $492.4 million, comprised of cash of
$158.1 million and $334.3 million of available borrowing capacity
under our asset-based credit facility, which remains undrawn.
Total cash provided by operating activities during the second
quarter of 2022 was $117.8 million and cash used by investing
activities was $50.5 million,
resulting in a positive free cash flow of $67.4 million in the second quarter of 2022.
Sale of Coiled Tubing assets
On July 19, 2022, a wholly-owned
subsidiary of the Company entered into a definitive agreement to
sell the Company's Coiled Tubing assets to Gladiator Energy LLC for
a cash purchase price of $21.55
million. The transaction is subject to customary closing
conditions and is expected to close in the third quarter of
2022.
The divestiture of non-core assets is consistent with the
Company's strategy to repurpose capital towards the highest return
projects that fit the Company's strategy around wellsite
integration, while also enhancing liquidity.
Outlook
Industry fundamentals remain positive in the third quarter of
2022, with a continuation of strong demand and very high industry
utilization. Seasonally, the third quarter is typically the
strongest quarter of the year, and we expect this will again be the
case this year.
We do not expect to add any additional horsepower to the market
for the remainder of 2022.
For the third quarter of 2022 we anticipate sequential revenue
growth of 8-10%. We expect the third quarter of 2022 to see
improved profitability and expanded margins relative to the second
quarter of 2022.
We now expect to generate free cash flow in excess of
$225 million in 2022.
Mr. Drummond concluded, "We are very encouraged by what we see
in the market, even considering the concerns about the global
economy potentially slowing. Our customers returns are very strong
and there is likely considerable room for commodity prices to
decrease before impacting demand for our services. Years of
underinvestment should provide motivation to continue profitable
activity. Given already high equipment utilization, we will use
this favorable market backdrop to continue our drive to recapture
COVID related pricing concessions, suggesting significant
profitability upside remains as we continue to navigate improved
cycle dynamics."
Conference Call Information
On July 27, 2022, NexTier will
hold a conference call for investors at 9:00
a.m. Central Time (10:00 a.m. Eastern
Time) to discuss second quarter 2022 financial and operating
results. Hosting the call will be Robert
Drummond, President and Chief Executive Officer and
Kenneth 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 and referencing NexTier
Oilfield Solutions. 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 replay
is 5074559. The replay will be available until August 3, 2022. 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.
(1) 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 management believes is useful to analysts and investors to
evaluate our ongoing results of operations, when considered
alongside GAAP measures such as net income and operating income.
You should not consider them in isolation from, or as a substitute
for, analysis of our results under GAAP.
Non-GAAP financial measures include EBITDA,
adjusted EBITDA, adjusted EBITDA margin, incrementals, adjusted
gross profit, adjusted net income, adjusted net income per share,
free cash flow, adjusted SG&A, and net debt. 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 EBITDA margin, incrementals, adjusted gross profit,
adjusted SG&A, adjusted net income, and adjusted net income per
share 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 is important
to investors in that it provides a useful measure to assess
management's effectiveness in the areas of profitability and
capital management.
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.
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 EBITDA as further adjusted with certain items management
does not consider in assessing ongoing performance. Management uses
adjusted EBITDA to set targets and to assess the performance of the
Company. Adjusted EBITDA margin is defined as (i) Revenue divided
by (ii) Adjusted EBITDA. Incrementals is defined as the change in
adjusted EBITDA quarter over quarter divided by the change in
revenue quarter over quarter. 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 is defined as
net income adjusted with certain items management does not consider
in assessing ongoing performance. Adjusted net income per share is
defined as (i) adjusted net income, (ii) divided by the number of
weighted average shares outstanding. 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, excluding any
acquisitions. Net debt is defined as (i) total debt, net of
unamortized debt discount and debt issuance costs, (ii) subtracted
by cash and cash equivalents.
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.
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," "plan," "target,"
"predict," "potential," "outlook," and "reflects," 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 that are forward-looking, including projections as
to the Company's 2022 guidance and other outlook information
(including with respect to the industry in which the Company
conducts its business) and the expected timing for the closing of
the sale of the Company's Coil Tubing assets, are based on
management's estimates, assumptions and projections, and are
subject to significant uncertainties and other factors, many of
which are beyond the Company's control. These factors and risks
include, but are not limited to, (i) the competitive nature of the
industry in which the Company conducts its business, including
pricing pressures; (ii) the ability to meet rapid demand shifts;
(iii) the ongoing impact of geopolitical conflicts; (iv) the impact
of pipeline capacity constraints and adverse weather conditions in
oil or gas producing regions; (v) the ability to obtain or renew
customer contracts and changes in customer requirements in the
markets the Company serves; (vi) the ability to identify, effect
and integrate acquisitions, joint ventures or other transactions;
(vii) the ability to protect and enforce intellectual property
rights; (viii) the effect of environmental and other governmental
regulations on the Company's operations; (ix) the effect of a loss
of, or interruption in operations of, the Company of one or more
key suppliers, or customers, including resulting from inflation,
including as a result of ongoing geopolitical conflicts, COVID-19
resurgence, product defects, recalls or suspensions; (x) the
variability of crude oil and natural gas commodity prices; (xi) the
market price (including inflation) and timely availability of
materials or equipment; (xii) the ability to obtain permits,
approvals and authorizations from governmental and third parties;
(xiii) the Company's ability to employ a sufficient number of
skilled and qualified workers; (xiv) the level of, and obligations
associated with, indebtedness; (xv) fluctuations in the market
price of the Company's stock; (xvi) the continued impact of the
COVID-19 pandemic (including as a result of the emergence of new
variants and strains of the virus, such as Delta and Omicron) and
the evolving response thereto by governments, private businesses or
others to contain the spread of the virus and its variants or to
treat its impact, 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
(xvii) other risks detailed in our latest Annual Report on Form
10-K, including, but not limited to "Part I, Item 1A. Risk Factors"
and "Part II, Item 7. Management's Discussion and Analysis of
Financial Condition and Results of Operations," and our other
filings with the Securities and Exchange Commission ("the SEC"),
which are 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 COVID-19, can be found in its periodic
reports and other filings 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
NEXTIER OILFIELD
SOLUTIONS INC. AND SUBSIDIARIES CONDENSED CONSOLIDATED
STATEMENTS OF OPERATIONS (unaudited, amounts in thousands,
except per share data)
|
|
|
|
Three Months
Ended
|
|
June 30,
2022
|
|
March 31,
2022
|
|
June 30,
2021
|
|
|
|
|
|
|
Revenue
|
$
842,912
|
|
$
635,043
|
|
$
292,145
|
Operating costs and
expenses:
|
|
|
|
|
|
Cost of
services
|
649,866
|
|
524,656
|
|
269,260
|
Depreciation and
amortization
|
58,794
|
|
55,163
|
|
40,671
|
Selling, general and
administrative expenses
|
35,855
|
|
35,859
|
|
20,734
|
Merger and
integration
|
23,682
|
|
9,232
|
|
178
|
Gain on disposal of
assets
|
(866)
|
|
(823)
|
|
(2,017)
|
Total operating costs
and expenses
|
767,331
|
|
624,087
|
|
328,826
|
Operating income
(loss)
|
75,581
|
|
10,956
|
|
(36,681)
|
Other income
(expense):
|
|
|
|
|
|
Other income,
net
|
1,461
|
|
5,370
|
|
11,247
|
Interest expense,
net
|
(7,344)
|
|
(7,374)
|
|
(5,726)
|
Total other income
(expense)
|
(5,883)
|
|
(2,004)
|
|
5,521
|
Income (loss) before
income taxes
|
69,698
|
|
8,952
|
|
(31,160)
|
Income tax
expense
|
(1,240)
|
|
(160)
|
|
(621)
|
Net income
(loss)
|
$
68,458
|
|
$
8,792
|
|
$
(31,781)
|
|
|
|
|
|
|
Net income (loss) per
share: basic
|
$
0.28
|
|
$
0.04
|
|
$
(0.15)
|
Net income (loss) per
share: diluted
|
$
0.27
|
|
$
0.04
|
|
$
(0.15)
|
|
|
|
|
|
|
Weighted-average
shares: basic
|
243,969
|
|
243,269
|
|
215,443
|
Weighted-average
shares: diluted
|
250,775
|
|
247,705
|
|
215,443
|
NEXTIER OILFIELD
SOLUTIONS INC. AND SUBSIDIARIES CONSOLIDATED BALANCE
SHEETS (unaudited, amounts in thousands)
|
|
|
|
|
|
June
30,
|
|
December
31,
|
|
2022
|
|
2021
|
ASSETS
|
|
|
|
Current
assets:
|
|
|
|
Cash and cash
equivalents
|
$
158,136
|
|
$
110,695
|
Trade and other
accounts receivable, net
|
456,632
|
|
301,740
|
Inventories,
net
|
57,229
|
|
38,094
|
Assets held for
sale
|
8,727
|
|
1,555
|
Prepaid and other
current assets
|
46,029
|
|
55,625
|
Total current
assets
|
726,753
|
|
507,709
|
Operating lease
right-of-use assets
|
17,369
|
|
21,767
|
Finance lease
right-of-use assets
|
45,616
|
|
41,537
|
Property and equipment,
net
|
603,343
|
|
620,865
|
Goodwill
|
192,780
|
|
192,780
|
Intangible
assets
|
57,441
|
|
64,961
|
Other noncurrent
assets
|
10,904
|
|
7,962
|
Total
assets
|
$
1,654,206
|
|
$
1,457,581
|
LIABILITIES AND
STOCKHOLDERS' EQUITY
|
|
|
|
Current
liabilities:
|
|
|
|
Accounts
payable
|
$
260,217
|
|
$
190,963
|
Accrued
expenses
|
281,402
|
|
213,923
|
Customer contract
liabilities
|
21,538
|
|
23,729
|
Current maturities of
operating lease liabilities
|
5,481
|
|
7,452
|
Current maturities of
finance lease liabilities
|
14,593
|
|
11,906
|
Current maturities of
long-term debt
|
13,691
|
|
13,384
|
Other current
liabilities
|
13,440
|
|
10,346
|
Total current
liabilities
|
610,362
|
|
471,703
|
Long-term operating
lease liabilities, less current maturities
|
12,456
|
|
20,446
|
Long-term finance lease
liabilities, less current maturities
|
23,585
|
|
26,873
|
Long-term debt, net of
unamortized deferred financing costs and unamortized debt discount,
less current maturities
|
354,503
|
|
361,501
|
Other non-current
liabilities
|
9,217
|
|
30,041
|
Total non-current
liabilities
|
399,761
|
|
438,861
|
Total
liabilities
|
1,010,123
|
|
910,564
|
Stockholders'
equity:
|
|
|
|
Common
stock
|
2,442
|
|
2,420
|
Paid-in capital in
excess of par value
|
1,105,006
|
|
1,094,020
|
Retained
deficit
|
(463,914)
|
|
(541,164)
|
Accumulated other
comprehensive loss
|
549
|
|
(8,259)
|
Total stockholders'
equity
|
644,083
|
|
547,017
|
Total liabilities
and stockholders' equity
|
$
1,654,206
|
|
$
1,457,581
|
NEXTIER OILFIELD
SOLUTIONS INC. AND SUBSIDIARIES ADDITIONAL SELECTED
FINANCIAL AND OPERATING DATA (unaudited, amounts in
thousands)
|
|
|
Three Months
Ended
|
|
June 30,
2022
|
|
March 31,
2022
|
Completion
Services:
|
|
|
|
Revenue
|
$
801,049
|
|
$
602,620
|
Cost of
services
|
616,319
|
|
496,286
|
Depreciation and
amortization and (gain) loss on sale of assets
|
51,312
|
|
47,759
|
Net income
|
133,418
|
|
58,575
|
Adjusted gross
profit(1)
|
$
184,730
|
|
$
106,334
|
|
|
|
|
Well Construction
and Intervention Services:
|
|
|
|
Revenue
|
$
41,863
|
|
$
32,423
|
Cost of
services
|
33,547
|
|
28,370
|
Depreciation and
amortization and (gain) loss on sale of assets
|
2,157
|
|
2,287
|
Net income
(loss)
|
6,159
|
|
1,766
|
Adjusted gross
profit(1)
|
$
8,316
|
|
$
4,053
|
|
|
(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
|
|
June 30,
2022
|
|
March 31,
2022
|
|
June 30,
2021
|
Net income
(loss)
|
$
68,458
|
|
$
8,792
|
|
$
(31,781)
|
Interest expense,
net
|
7,344
|
|
7,374
|
|
5,726
|
Income tax
expense
|
1,240
|
|
160
|
|
621
|
Depreciation and
amortization
|
58,794
|
|
55,163
|
|
40,671
|
EBITDA
|
$
135,836
|
|
$
71,489
|
|
$
15,237
|
Plus management
adjustments:
|
|
|
|
|
|
Acquisition,
integration and expansion(1)
|
$
23,682
|
|
$
9,232
|
|
$
178
|
Non-cash stock
compensation(2)
|
7,547
|
|
7,815
|
|
4,889
|
Market-driven
costs(3)
|
—
|
|
—
|
|
378
|
Divestiture of
business(4)
|
905
|
|
541
|
|
2,428
|
Gain on equity
security investment(5)
|
(2,111)
|
|
(5,606)
|
|
(1,331)
|
Litigation(6)
|
416
|
|
—
|
|
1,638
|
Tax
audit(7)
|
—
|
|
—
|
|
(8,778)
|
Insurance
recovery(8)
|
—
|
|
—
|
|
(9,686)
|
Other
|
(390)
|
|
22
|
|
347
|
Adjusted
EBITDA
|
$
165,885
|
|
$
83,493
|
|
$
5,300
|
|
|
(1)
|
Represents transaction
and integration costs, including earnout payments, 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 bad debt
expense on the sale 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
estimated 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
|
|
Variance
|
|
June 30,
2022
|
|
March 31,
2022
|
|
Adjusted
EBITDA
|
$
165,885
|
|
$
83,493
|
|
$
82,392
|
Revenue
|
$
842,912
|
|
$
635,043
|
|
$
207,869
|
Adjusted EBITDA
margin
|
20 %
|
|
13 %
|
|
|
Incrementals
|
|
|
|
|
40 %
|
|
|
Three Months
Ended
June 30, 2022
|
Selling, general and
administrative expenses
|
|
$
35,855
|
Less management
adjustments:
|
|
|
Non-cash stock
compensation
|
|
(7,547)
|
Litigation
|
|
(416)
|
Divestiture of
business
|
|
(905)
|
Other
|
|
390
|
Adjusted selling,
general and administrative expenses
|
|
$
27,377
|
|
|
|
Three Months
Ended
March 31, 2022
|
Selling, general and
administrative expenses
|
|
$
35,859
|
Less management
adjustments:
|
|
|
Non-cash stock
compensation
|
|
(7,815)
|
Divestiture of
business
|
|
(541)
|
Other
|
|
(22)
|
Adjusted selling,
general and administrative expenses
|
|
$
27,481
|
NEXTIER OILFIELD
SOLUTIONS INC. AND SUBSIDIARIES NON-GAAP FINANCIAL
MEASURES (unaudited, amounts in thousands)
|
|
|
Three Months Ended
June 30, 2022
|
|
Completion
Services
|
|
WC&I
|
|
Total
|
Revenue
|
$
801,049
|
|
$
41,863
|
|
$
842,912
|
Cost of
services
|
616,319
|
|
33,547
|
|
649,866
|
Gross profit
excluding depreciation and amortization
|
184,730
|
|
8,316
|
|
193,046
|
Management adjustments
associated with cost of services
|
—
|
|
—
|
|
—
|
Adjusted gross
profit
|
$
184,730
|
|
$
8,316
|
|
$
193,046
|
|
|
Three Months Ended
March 31, 2022
|
|
Completion
Services
|
|
WC&I
|
|
Total
|
Revenue
|
$
602,620
|
|
$
32,423
|
|
$
635,043
|
Cost of
services
|
496,286
|
|
28,370
|
|
524,656
|
Gross profit
excluding depreciation and amortization
|
106,334
|
|
4,053
|
|
110,387
|
Management adjustments
associated with cost of services
|
—
|
|
—
|
|
—
|
Adjusted gross
profit
|
$
106,334
|
|
$
4,053
|
|
$
110,387
|
NEXTIER OILFIELD
SOLUTIONS INC. AND SUBSIDIARIES NON-GAAP FINANCIAL
MEASURES (unaudited, amounts in thousands)
|
|
|
|
|
|
Three Months
Ended
|
|
|
June 30,
2022
|
Net provided by
operating activities
|
|
$
117,834
|
Net cash used in
investing activities
|
|
(50,458)
|
Free cash
flow
|
|
$
67,376
|
|
|
|
|
|
Three Months
Ended
|
|
|
March 31,
2022
|
Net cash used by
operating activities
|
|
$
28,666
|
Net cash used in
investing activities(1)
|
|
(26,996)
|
Free cash
flow
|
|
$
1,670
|
|
|
(1)
|
Excludes $0.5 million
due to net working capital adjustments in connection with the
acquisition of Alamo Pressure Pumping.
|
|
|
|
|
Three Months Ended
|
|
|
June 30, 2022
|
Total debt, net of
unamortized debt discount and debt issuance costs
|
|
$
368,194
|
Cash and cash
equivalents
|
|
158,136
|
Net debt
|
|
$
210,058
|
|
|
|
|
|
Three Months Ended
|
|
|
March 31, 2022
|
Total debt, net of
unamortized debt discount and debt issuance costs
|
|
$
371,636
|
Cash and cash
equivalents
|
|
99,788
|
Net debt
|
|
$
271,848
|
NEXTIER OILFIELD
SOLUTIONS INC. AND SUBSIDIARIES NON-GAAP FINANCIAL
MEASURES (unaudited, amounts in thousands, except per share
data)
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
June 30,
2022
|
|
March 31,
2022
|
|
June 30,
2021
|
Net income
(loss)
|
$
68,458
|
|
$
8,792
|
|
$
(31,781)
|
Plus management
adjustments:
|
|
|
|
|
|
Acquisition,
integration and expansion(1)
|
$
23,682
|
|
$
9,232
|
|
178
|
Non-cash stock
compensation(2)
|
7,547
|
|
7,815
|
|
4,889
|
Market-driven
costs(3)
|
—
|
|
—
|
|
378
|
Divestiture of
business(4)
|
905
|
|
541
|
|
2,428
|
Gain on equity
security investment(5)
|
(2,111)
|
|
(5,606)
|
|
(1,331)
|
Litigation(6)
|
416
|
|
—
|
|
1,638
|
Tax
audit(7)
|
—
|
|
—
|
|
(8,778)
|
Insurance
recovery(8)
|
—
|
|
—
|
|
(9,686)
|
Other
|
(390)
|
|
22
|
|
347
|
Adjusted net income
(loss)
|
$
98,507
|
|
$
20,796
|
|
$
(41,718)
|
|
|
|
|
|
|
Adjusted net income
(loss) per share: basic
|
$
0.40
|
|
$
0.09
|
|
$
(0.19)
|
Adjusted net income
(loss) per share: diluted
|
$
0.39
|
|
$
0.08
|
|
$
(0.19)
|
|
|
|
|
|
|
Weighted-average
shares: basic
|
243,969
|
|
243,269
|
|
215,443
|
Weighted-average
shares: diluted
|
250,775
|
|
247,705
|
|
215,443
|
|
|
(1)
|
Represents transaction
and integration costs, including earnout payments, 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 bad debt
expense on the sale 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
estimated insurance recovery in excess of book value due to a fire
incident.
|
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SOURCE NexTier Oilfield Solutions