HOUSTON, Aug. 4, 2021 /PRNewswire/ -- NexTier
Oilfield Solutions Inc. (NYSE: NEX) ("NexTier" or the "Company")
today reported second quarter 2021 financial and operational
results.
Second Quarter 2021 Results & Recent Highlights
- Generated total revenue of $292.1
million in Q2 2021, reflecting an increase of 28% compared
to Q1 2021
- Reported fracturing and integrated wireline revenue of
$239.2 million in Q2 2021, reflecting
a sequential increase of 27%
- Reported net loss of $31.8
million in Q2 2021, compared to net loss of $54.5 million in the prior quarter
- Reported SG&A of $20.7
million in Q2 2021, reflecting an increase of 29% versus Q1
2021
- Reported Adjusted SG&A(1) of $20.1 million in Q2 2021, reflecting a sequential
decrease of 5%
- Reported EBITDA of $15.2 million
in Q2 2021, reflecting an increase of $18.8
million compared to the prior quarter
- Reported Adjusted EBITDA(1) of $5.3 million in Q2 2021, compared to $0.7 million in Q1 2021
- Averaged 20 deployed and 18 fully-utilized fleets in Q2 2021
vs. 18 deployed and 15 fully-utilized fleets in Q1 2021
- Exited Q2 2021 with 21 fleets deployed and 2 additional staffed
fleets ready for Q3 2021 deployment
- Ended Q2 2021 with total liquidity of $372.0 million, including $250.4 million of cash; no debt maturities
through 2025
- Expect Q3 2021 organic NexTier standalone sequential revenue
growth of over 25%, enabled by Q2 fleet activation costs
- Entered into an agreement to acquire Alamo Pressure Pumping,
LLC, a pure-play pressure pumper focused on next-gen equipment in
the Permian
- Including September 2021 results
for Alamo, projected combined
revenue growth for Q3 2021 of 35-44%
- Investor presentation detailing the Alamo transaction is available on NexTier's
Investor Relations website
Management Commentary
"We are pleased with the progress on our growth strategy both
organically and with the announced acquisition of Alamo Pressure
Pumping," said Robert Drummond,
President and Chief Executive Officer of NexTier. "Commodity
prices and economic activity continued to improve throughout the
second quarter, leading to a strong recovery in completions
activity and an unusual amount of near-term opportunities to deploy
additional fleets. Our response to the significant level of
concentrated growth included costly investments for activating and
staffing fleets to be deployed in the third quarter beginning in
July. These growing pains, out of period costs, and transitory
startup inefficiencies, impacted our second quarter
profitability. Nevertheless, we remain confident that our
investments will allow us to harvest the benefits during the second
half of this year and beyond."
"NexTier achieved sequential revenue growth of 28%, driven by
continued improvement in completions activity and demand for our
next gen frac equipment," said Kenny
Pucheu, Executive Vice President and Chief Financial Officer
of NexTier. "Offsetting some of the sequential top-line growth was
an estimated $17 million of EBITDA
impact resulting from operational and structural startup
inefficiencies in our frac business, compounded by fleet activation
costs for deployments planned in the third quarter. Having
already funded the major costs to deploy, we stand ready to
efficiently meet another quarter of strong growth and customer
demand."
Second Quarter 2021 Financial Results
Revenue totaled $292.1 million in
the second quarter of 2021, compared to $228.4 million in the first quarter of 2021. The
sequential improvement in revenue was driven by increased activity
levels and added capacity in all business lines and improvements in
net pricing.
Net loss totaled $31.8 million, or
$0.15 per diluted share, in the
second quarter of 2021, compared to $54.5
million, or $0.25 per diluted
share in the first quarter of 2021. Adjusted net loss(1)
totaled $41.7 million, or
$0.19 per diluted share, in the
second quarter of 2021, compared to Adjusted net loss of
$50.3 million, or $0.23 per diluted share, in the first quarter of
2021.
Selling, general and administrative expense ("SG&A") totaled
$20.7 million in the second
quarter of 2021, compared to SG&A of $16.1 million in the first quarter of 2021.
Adjusted SG&A(1) totaled $20.1 million in the second quarter of 2021,
compared to Adjusted SG&A of $21.2 million in the first quarter of
2021.
Adjusted EBITDA(1) totaled $5.3 million in the second quarter of 2021,
compared to Adjusted EBITDA of $0.7
million in the first quarter of 2021.
Second Quarter 2021 Management Adjustments
EBITDA(1) for the second quarter was $15.2 million. When excluding net management
adjustments of $9.9 million, adjusted
EBITDA for the second quarter was $5.3
million. Management adjustments included a gain on estimated
insurance recovery in excess of book value from a fire, a reduction
in a pre-merger tax audit estimate, and a gain on an equity
security, partially offset by stock compensation expense, bad debt
expense related to the Well Support Services divestiture, and
estimated legal expenses related to pre-merger litigation.
Approximately $8.8 million of total
net management adjustments were cash, mostly related to the
insurance recovery.
Completion Services
Revenue in our Completion Services segment totaled $268.8 million in the second quarter of 2021,
compared to $209.0 million in the
first quarter of 2021. The sequential increase was primarily driven
by increased activity in all completions product and services
lines, improved pricing, and new fleet deployments. Adjusted
Gross Profit totaled $20.4 million in
the second quarter of 2021, compared to $15.4 million in the first quarter of 2021.
Despite a fire resulting in the loss of a fleet, the Company had
an average of 18 fully-utilized fracturing fleets in the second
quarter of 2021, and exited the second quarter of 2021 with 19
fully-utilized and 21 deployed fleets. When taking only fracturing
and integrated wireline into account, annualized Adjusted Gross
Profit(1) per fully-utilized fracturing fleet totaled
$4.0 million in the second
quarter of 2021, compared to $4.1 million in the first quarter of
2021.
Well Construction and Intervention Services
Revenue in our Well Construction and Intervention ("WC&I")
Services segment, totaled $23.3
million in the second quarter of 2021, compared to
$19.4 million in the first quarter of
2021. The sequential improvement was primarily driven by increased
customer activity, favorable activity mix, and some pricing
improvements in our Cement business. Adjusted Gross Profit totaled
$2.8 million in the second quarter of
2021, compared to Adjusted Gross Profit of $1.7 million in the first quarter of 2021.
Balance Sheet and Capital
Total debt outstanding as of June 30,
2021 totaled $334.4 million, net of debt discounts and
deferred finance costs and excluding lease obligations. As of
June 30, 2021, total available
liquidity was $372.0 million,
comprised of cash of $250.4 million, and $121.6 million of available borrowing
capacity under our asset-based credit facility.
Total cash provided by operating activities during the second
quarter of 2021 was $14.6 million and
cash used in investing activities was $33.9
million, resulting in a free cash flow(1) use of
$19.3 million in the second quarter
of 2021. Excluding acquisition, integration, and expansion costs of
$0.1 million, market driven costs of
$0.4 million, and other miscellaneous
costs of $0.4 million, adjusted free
cash flow use(1) totaled $18.5
million in the second quarter of 2021.
Acquisition of Alamo Pressure Pumping
On August 4, 2021, NexTier
announced that it entered into an agreement to acquire 100% of the
equity interests of Alamo Pressure Pumping, LLC ("Alamo"). For additional information related to
the acquisition, please reference the Company's press release
issued today and 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 third quarter of 2021, NexTier standalone, expects to
operate the equivalent of 21 fully-utilized frac fleets and exit
the quarter with 23 frac fleets deployed. In addition, the Company
will add capacity, which is expected to be highly-utilized, from
Alamo following the completion of
the acquisition, currently expected at the end of August 2021.
Combined, and based on this forecasted transaction close timing,
revenue for the third quarter of 2021 is expected to be between
$390 million and $420 million, driven by the addition of
Alamo's deployed capacity with
very high utilization for approximately one month, combined with
better utilization of increased Tier 4 duel fuel deployments that
carries better profitability. On this base of activity, on a
combined basis, we expect to generate at least $30 million of adjusted EBITDA in the third
quarter of 2021. With the increased cadence of NexTier's
profitability during the back half of the second quarter, and the
addition of Alamo, the Company
expects to achieve a third quarter of 2021 adjusted EBITDA exit
monthly run rate of $18-20
million.
With NexTier's fleet upgrade program largely completed during
the first half of 2021, combined with the addition of a frac fleet
in early July 2021, the Company
expects to convert two additional fleets to Tier 4 Dual Fuel during
the second half of 2021 for standalone NexTier. NexTier plans to
provide additional details on Alamo's upgrade program following the
completion of the transaction.
"We were very successful at conserving cash during the COVID-19
downturn, positioning us to make strategic moves like the
Alamo transaction when the time
was right," added Robert Drummond.
"We have frequently stated that the strength of our balance sheet
was a key differentiator for NexTier and now is the time we shift
to using it offensively. Our investments made in 2020 and 2021 on
enhancing and standardizing our fleet combined with our merger with
Alamo accelerates our strategic
plans to deliver higher efficiency, lower cost integrated
completion operations, with a byproduct of reduced emissions for
our customers. We believe that we are now positioned for the right
part of the market and at the right time."
Coronavirus Monitoring
The Company continues our coronavirus measures focused on the
safety of our partners, employees, and the communities in which we
operate, while at the same time seeking to mitigate the impact on
our financial position and operations. We continue to encourage our
workforce to practice safe behaviors in the workplace and while
away from work to help prevent community spread of COVID-19. The
Company continues to assess its mitigation plans for further and
prolonged impact from the coronavirus. Additional information on
the Company's response to the coronavirus can be found in its
periodic reports that are filed with the Securities and Exchange
Commission.
Conference Call Information
On August 5, 2021, NexTier will
hold a conference call for investors at 7:30
a.m. Central Time (8:30 a.m. Eastern
Time) to discuss second quarter 2021 financial and operating
results in addition to its Alamo
acquisition announcement. 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
10158270 and will be available until August
12, 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 the most 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)
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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
This press release 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 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 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, the amount and timing of synergies from the
proposed transaction, and the closing date for 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, one or more key suppliers,
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 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, NexTier's and Alamo's 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, 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; and the
timing of the closing of the proposed transaction, including the
risk that the conditions to the transaction are not satisfied on a
timely basis or at all and the failure of the transaction to close
for any other reason; the risk that a consent or authorization that
may be required for the proposed transaction is not obtained or is
obtained subject to conditions that are not anticipated;
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. 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; and the
timing of the closing of the proposed transaction, including the
risk that the conditions to the transaction are not satisfied on a
timely basis or at all and the failure of the transaction to close
for any other reason; the risk that a consent or authorization that
may be required for the proposed transaction is not obtained or is
obtained subject to conditions that are not anticipated;
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.
Investor Contact:
Kenneth Pucheu
Executive Vice President - Chief Financial Officer
Marc Silverberg
Partner (ICR)
marc.silverberg@icrinc.com
NEXTIER OILFIELD
SOLUTIONS INC. AND SUBSIDIARIES
CONDENSED
CONSOLIDATED STATEMENTS OF OPERATIONS
(unaudited, amounts
in thousands, except per share data)
|
|
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Three Months
Ended
|
|
June 30,
2021
|
|
March 31,
2021
|
|
|
|
|
Revenue
|
$
|
292,145
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|
|
$
|
228,402
|
|
Operating costs and
expenses:
|
|
|
|
Cost of
services
|
269,260
|
|
|
217,777
|
|
Depreciation and
amortization
|
40,671
|
|
|
45,868
|
|
Selling, general and
administrative expenses
|
20,734
|
|
|
16,069
|
|
Merger and
integration
|
178
|
|
|
—
|
|
Gain on disposal of
assets
|
(2,017)
|
|
|
(4,592)
|
|
Total operating costs
and expenses
|
328,826
|
|
|
275,122
|
|
Operating
loss
|
(36,681)
|
|
|
(46,720)
|
|
Other income
(expense):
|
|
|
|
Other income
(expense), net
|
11,247
|
|
|
(2,719)
|
|
Interest expense,
net
|
(5,726)
|
|
|
(4,206)
|
|
Total other income
(expense)
|
5,521
|
|
|
(6,925)
|
|
Loss before income
taxes
|
(31,160)
|
|
|
(53,645)
|
|
Income tax
expense
|
(621)
|
|
|
(857)
|
|
Net
loss
|
$
|
(31,781)
|
|
|
$
|
(54,502)
|
|
|
|
|
|
Net loss per share:
basic
|
$
|
(0.15)
|
|
|
$
|
(0.25)
|
|
Net loss per share:
diluted
|
$
|
(0.15)
|
|
|
$
|
(0.25)
|
|
|
|
|
|
Weighted-average
shares: basic
|
215,443
|
|
|
215,110
|
|
Weighted-average
shares: diluted
|
215,443
|
|
|
215,110
|
|
NEXTIER OILFIELD
SOLUTIONS INC. AND SUBSIDIARIES
CONSOLIDATED
BALANCE SHEETS
(unaudited, amounts
in thousands)
|
|
|
|
June
30,
|
|
December
31,
|
|
|
2021
|
|
2020
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ASSETS
|
|
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|
Current
assets:
|
|
|
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Cash and cash
equivalents
|
|
$
|
250,436
|
|
|
$
|
275,990
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|
Trade and other
accounts receivable, net
|
|
157,743
|
|
|
122,584
|
|
Inventories,
net
|
|
30,974
|
|
|
30,068
|
|
Assets held for
sale
|
|
1,516
|
|
|
126
|
|
Prepaid and other
current assets
|
|
50,437
|
|
|
58,011
|
|
Total current
assets
|
|
491,106
|
|
|
486,779
|
|
Operating lease
right-of-use assets
|
|
26,704
|
|
|
37,157
|
|
Finance lease
right-of-use assets
|
|
630
|
|
|
1,132
|
|
Property and equipment,
net
|
|
462,447
|
|
|
470,711
|
|
Goodwill
|
|
104,931
|
|
|
104,198
|
|
Intangible
assets
|
|
45,843
|
|
|
51,182
|
|
Other noncurrent
assets
|
|
5,881
|
|
|
6,729
|
|
Total
assets
|
|
$
|
1,137,542
|
|
|
$
|
1,157,888
|
|
LIABILITIES AND
STOCKHOLDERS' EQUITY
|
|
|
|
|
Current
liabilities:
|
|
|
|
|
Accounts
payable
|
|
$
|
122,888
|
|
|
$
|
61,259
|
|
Accrued
expenses
|
|
140,243
|
|
|
134,230
|
|
Customer contract
liabilities
|
|
2,546
|
|
|
266
|
|
Current maturities of
operating lease liabilities
|
|
11,497
|
|
|
18,551
|
|
Current maturities of
finance lease liabilities
|
|
380
|
|
|
606
|
|
Current maturities of
long-term debt
|
|
2,282
|
|
|
2,252
|
|
Other current
liabilities
|
|
2,747
|
|
|
2,993
|
|
Total current
liabilities
|
|
282,583
|
|
|
220,157
|
|
Long-term operating
lease liabilities, less current maturities
|
|
21,145
|
|
|
24,232
|
|
Long-term finance lease
liabilities, less current maturities
|
|
209
|
|
|
504
|
|
Long-term debt, net of
unamortized deferred financing costs and unamortized debt discount,
less current maturities
|
|
332,124
|
|
|
333,288
|
|
Other non-current
liabilities
|
|
19,748
|
|
|
22,419
|
|
Total non-current
liabilities
|
|
373,226
|
|
|
380,443
|
|
Total
liabilities
|
|
655,809
|
|
|
600,600
|
|
Stockholders'
equity:
|
|
|
|
|
Common
stock
|
|
2,157
|
|
|
2,144
|
|
Paid-in capital in
excess of par value
|
|
998,628
|
|
|
989,995
|
|
Retained
deficit
|
|
(508,024)
|
|
|
(421,741)
|
|
Accumulated other
comprehensive loss
|
|
(11,028)
|
|
|
(13,110)
|
|
Total stockholders'
equity
|
|
481,733
|
|
|
557,288
|
|
Total liabilities
and stockholders' equity
|
|
$
|
1,137,542
|
|
|
$
|
1,157,888
|
|
NEXTIER OILFIELD
SOLUTIONS INC. AND SUBSIDIARIES
ADDITIONAL
SELECTED FINANCIAL AND OPERATING DATA
(unaudited, amounts
in thousands)
|
|
|
Three Months
Ended
|
|
June 30,
2021
|
|
March 31,
2021
|
Completion
Services:
|
|
|
|
Revenue
|
$
|
268,839
|
|
|
$
|
208,981
|
|
Cost of
services
|
248,585
|
|
|
199,680
|
|
Depreciation,
amortization, (gain) loss on sale of assets, and
impairment
|
34,552
|
|
|
34,408
|
|
Net loss
|
(14,298)
|
|
|
(25,107)
|
|
Adjusted gross
profit(1)
|
$
|
20,361
|
|
|
$
|
15,414
|
|
|
|
|
|
Well Construction
and Intervention Services:
|
|
|
|
Revenue
|
$
|
23,306
|
|
|
$
|
19,421
|
|
Cost of
services
|
20,675
|
|
|
18,097
|
|
Depreciation,
amortization, (gain) loss on sale of assets, and
impairment
|
1,080
|
|
|
2,203
|
|
Net loss
|
1,551
|
|
|
(879)
|
|
Adjusted gross
profit(1)
|
$
|
2,756
|
|
|
$
|
1,676
|
|
|
(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,
2021
|
|
March 31,
2021
|
Net
loss
|
|
$
|
(31,781)
|
|
|
$
|
(54,502)
|
|
Interest expense,
net
|
|
5,726
|
|
|
4,206
|
|
Income tax
expense
|
|
621
|
|
|
857
|
|
Depreciation and
amortization
|
|
40,671
|
|
|
45,868
|
|
EBITDA
|
|
$
|
15,237
|
|
|
$
|
(3,571)
|
|
Plus management
adjustments:
|
|
|
|
|
Acquisition,
integration and expansion(1)
|
|
178
|
|
|
—
|
|
Non-cash stock
compensation(2)
|
|
4,889
|
|
|
5,203
|
|
Market-driven
costs(3)
|
|
378
|
|
|
7,295
|
|
Divestiture of
business(4)
|
|
2,428
|
|
|
(785)
|
|
(Gain) loss on
equity security
investment(5)
|
|
(1,331)
|
|
|
3,693
|
|
Litigation(6)
|
|
1,638
|
|
|
2,137
|
|
Tax
audit(7)
|
|
(8,778)
|
|
|
(13,328)
|
|
Insurance
recovery(8)
|
|
(9,686)
|
|
|
—
|
|
Other
|
|
347
|
|
|
25
|
|
Adjusted
EBITDA
|
|
$
|
5,300
|
|
|
$
|
669
|
|
|
|
|
|
|
|
|
(1)
|
Represents
transaction costs related to acquisitions.
|
(2)
|
Represents non-cash
amortization of equity awards issued under the Company's Incentive
Award Plan, excluding accelerations associated with market-driven
workforce reductions.
|
(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 and make-whole
derivative received during the first quarter of 2021 as part of the
sale of the Well Support Services segment and a bad debt expense
recognized in the second quarter of 2021 related to the divestiture
of the segment.
|
(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 increase
in accrual related to contingencies acquired in business
acquisitions.
|
(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
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
|
|
|
|
|
|
Three Months
Ended
March 31, 2021
|
Selling, general
and administrative expenses
|
|
$
|
16,069
|
|
Less management
adjustments:
|
|
|
Non-cash stock
compensation
|
|
(5,203)
|
|
Market-driven
costs
|
|
(830)
|
|
Litigation
|
|
(2,137)
|
|
Tax
audit
|
|
13,328
|
|
Other
|
|
(25)
|
|
Adjusted selling,
general and administrative expenses
|
|
$
|
21,202
|
|
|
|
|
|
Three Months
Ended
June 30, 2020
|
Selling, general
and administrative expenses
|
|
$
|
38,024
|
|
Less management
adjustments:
|
|
|
Non-cash stock
compensation
|
|
(5,141)
|
|
Market-driven
costs
|
|
(3,914)
|
|
Divestiture of
business
|
|
728
|
|
Other
|
|
1,253
|
|
Adjusted selling,
general and administrative expenses
|
|
$
|
30,950
|
|
NEXTIER OILFIELD
SOLUTIONS INC. AND SUBSIDIARIES
NON-GAAP FINANCIAL
MEASURES
(unaudited, amounts
in thousands)
|
|
|
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
March 31, 2021
|
|
Completion
Services
|
|
WC&I
|
|
Total
|
Revenue
|
$
|
208,981
|
|
|
$
|
19,421
|
|
|
$
|
228,402
|
|
Cost of
services
|
199,680
|
|
|
18,097
|
|
|
217,777
|
|
Gross profit
excluding depreciation and amortization
|
9,301
|
|
|
1,324
|
|
|
10,625
|
|
Management
adjustments associated with cost of services
|
6,113
|
|
|
352
|
|
|
6,465
|
|
Adjusted gross
profit
|
$
|
15,414
|
|
|
$
|
1,676
|
|
|
$
|
17,090
|
|
|
|
|
|
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
|
|
|
|
|
|
Three Months
Ended
|
|
|
March 31,
2021
|
|
|
Frac &
Integrated Wireline
|
Revenue
|
|
$
|
189,039
|
|
Cost of
services
|
|
178,951
|
|
Gross profit
excluding depreciation and amortization
|
|
10,088
|
|
Management
adjustments associated with cost of services
|
|
5,316
|
|
Adjusted gross
profit
|
|
$
|
15,404
|
|
|
|
|
Average hydraulic
fracturing fleets deployed
|
|
18
|
|
Fully-utilized
hydraulic fracturing fleets
|
|
15
|
|
Annualized adjusted
gross profit per fully-utilized fleet
|
|
$
|
4,108
|
|
NEXTIER OILFIELD
SOLUTIONS INC. AND SUBSIDIARIES
NON-GAAP FINANCIAL
MEASURES
(unaudited, amounts
in thousands)
|
|
|
|
Three Months
Ended
|
|
|
June 30,
2021
|
Net cash provided by
operating activities
|
|
$
|
14,627
|
|
Net cash used in
investing activities
|
|
(33,949)
|
|
Free cash
flow
|
|
(19,322)
|
|
Acquisition,
integration, and expansion(2)
|
|
68
|
|
Market-driven
costs(2)
|
|
378
|
|
Other
|
|
352
|
|
Adjusted free cash
flow
|
|
$
|
(18,524)
|
|
|
|
|
|
Three Months
Ended
|
|
|
March 31,
2021
|
Net cash used by
operating activities
|
|
$
|
(23,226)
|
|
Net cash used in
investing activities(1)
|
|
(13,762)
|
|
Free cash
flow
|
|
(36,988)
|
|
Market-driven
costs(2)
|
|
1,423
|
|
Equity security
investment
|
|
(337)
|
|
Divestiture of
Business
|
|
(785)
|
|
Adjusted free cash
flow
|
|
$
|
(36,687)
|
|
|
(1) Excludes $34.4
million from settlement of Basic Notes.
|
(2)
Acquisition, integration and expansion and market-driven costs in
the reconciliation to Adjusted
free cash flow may
differ from those included in the reconciliation to Adjusted
EBITDA due to
cash paid in the
quarter related to management adjustments.
|
|
|
|
|
|
|
|
|
|
|
|
|
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
|
|
NEXTIER OILFIELD
SOLUTIONS INC. AND SUBSIDIARIES
NON-GAAP FINANCIAL
MEASURES
(unaudited, amounts
in thousands)
|
|
|
Three Months
Ended
|
|
March 31,
2021
|
Net loss
|
$
|
(54,502)
|
|
Plus management
adjustments:
|
|
Non-cash stock
compensation
|
5,203
|
|
Market-driven
costs
|
7,295
|
|
Divestiture of
business
|
(785)
|
|
Gain (loss) on equity
security investment
|
3,693
|
|
Litigation
|
2,137
|
|
Tax audit
|
(13,328)
|
|
Other
|
25
|
|
Adjusted net
loss
|
$
|
(50,262)
|
|
|
|
Adjusted net loss per
share, basic and diluted
|
$
|
(0.23)
|
|
|
|
Weighted-average
shares, basic and diluted
|
215,110
|
|
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SOURCE NexTier Oilfield Solutions