Cyclical upstream spending
Customers cut completion activity when oil and gas prices weaken or budgets tighten.
- Scope
- Oil and natural gas E&P customers
- Materiality
- high
Nine Energy Service, Inc.
Nine Energy Service, Inc. provides completion services for unconventional oil and gas wells, with operations across major North American basins and select international markets. Its work centers on downhole tools, cementing, wireline, and related technologies used to prepare horizontal, multistage wells for production.
4,5 %
−9,1 %
+1,4 %
1.85
1.23
| % | |
|---|---|
| Cementing services | 40% Cement placement and related pump-down services used to isolate well zones and support completion operations. |
| Wireline services | 25% Wireline operations used to deploy tools and support staged completion work in horizontal wells. |
| Completion tools | 20% Downhole tools and proprietary equipment used in multistage well completion programs. |
| Other completion services | 15% Additional field services, technical support, and related completion offerings across customer projects. |
Nine sells primarily to exploration and production companies that develop unconventional oil and natural gas resources...
- Integrated E&P companiesprimary
Large upstream operators that buy completion services and tools for multi-well development programs and operational consistency.
- Independent E&P companiesprimary
Smaller and mid-sized producers that outsource cementing, wireline, and downhole completion work to improve well economics.
- North American shale operatorsprimary
Operators in major onshore basins that need horizontal, multistage completion services and field execution support.
- International E&P customerssecondary
Select non-U.S. customers that purchase completion tools and services for unconventional development projects.
Nine operates across major onshore basins in the United States and Canada, with additional business abroad...
- •United States is the core market for completion services
- •Canada is a meaningful operating market for basin coverage
- •Select international work supports tools and service expansion
- •Major onshore basins drive customer demand and equipment deployment
- •Regional activity levels affect utilization, pricing, and logistics
Nine’s strategy is to win share with existing and new customers while broadening its tools and completion offerings...
01
Grow share in core completion marketsshort-term
Higher utilization and stronger customer relationships support the service network and equipment base.
02
Expand tools and technology offeringsmedium-term
Proprietary tools and smarter applications can improve differentiation and customer retention.
03
Broaden geographic reachmedium-term
A wider footprint reduces dependence on any single basin and opens new demand pools.
Nine is exposed to cyclical oil and gas spending, so demand can weaken when customers reduce drilling and completion...
Customer concentration
A small number of customers account for a meaningful portion of revenue, so lost work can quickly affect utilization.
- Scope
- Top five customers were about 24% of revenue
- Materiality
- high
Competitive pressure
Large integrated oilfield service firms and local competitors can compete aggressively on price, technology, and execution.
- Scope
- Completion services and tools markets
- Materiality
- high
Supplier concentration
Certain product lines depend on limited third-party manufacturers and vendors.
- Scope
- Proprietary products and service inputs
- Materiality
- medium
Cybersecurity and IT disruption
Operations depend on information systems for coordination, data, and field execution.
- Scope
- Operational systems and customer data
- Materiality
- medium
Property and equipment
Fleet and tools valuation
Impairment assessments
Non-cash charges and asset values
Revenue timing and utilization
Quarterly comparability
Debt and financing costs
Cash flow and earnings presentation
: 29.4.2026