HOUSTON, Texas, May 4, 2021 /PRNewswire/ -- NexTier Oilfield
Solutions Inc. (NYSE: NEX) ("NexTier" or the "Company") today
reported first quarter 2021 financial and operational
results.
First Quarter 2021 Results and Recent Highlights
- Generated total revenue of $228.4
million in Q1 2021, reflecting an increase of 6% compared to
Q4 2020
- Reported fracturing and integrated wireline revenue of
$189.0 million in Q1 2021, reflecting
an increase of 2% compared to Q4 2020
- Reported net loss of $54.5
million in Q1 2021, compared to net loss of $60.2 million in Q4 2020
- Reported SG&A of $16.1
million in Q1 2021, reflecting a decrease of 32% versus Q4
2020
- Reported Adjusted SG&A(1) of $21.2 million in Q1 2021, reflecting an increase
of 3% versus Q4 2020
- Reported Adjusted EBITDA(1) of $0.7 million in Q1 2021, compared to $7.7 million in Q4 2020
- Reported profitability includes an estimated Q1 2021 storm
impact of $10.0 million
- Averaged 18 deployed and 15 fully-utilized fleets in Q1 2021
vs. 17 deployed and 14 fully-utilized fleets in Q4 2020
- Exited Q1 2021 with total liquidity of $353.0 million, including $271.6 million of cash; no term loan maturities
through 2025
Management Commentary
"NexTier's Completions activity during the first quarter played
out as we expected, with the exception of the abnormal winter storm
that disrupted operations in February," said Robert Drummond, President and Chief Executive
Officer of NexTier. "We were pleased to deploy Completion fleets
for five new customers at the start of the year in January, and
finished the quarter with strong efficiencies in March, which
marked our most profitable month since April of 2020. I was
particularly proud of how our team handled the unusual winter storm
that had a broad impact across the Southern region, including the
Permian, Eagle Ford, and Haynesville, and caused the widespread
halt of operations for approximately 10 days. While this disruption
interrupted our momentum during the quarter, the team managed to
safely accommodate our field crews and minimize impact to our
customers' operations and our equipment."
"We are moving into the second quarter with positive momentum,
which is enhanced by increased activity from some of our historical
customers returning to work. I am pleased to see our customers
continuing to increase their use of natural gas-powered equipment
to further reduce their carbon footprint and capture the value
created by our integrated completions solutions," continued Mr.
Drummond. "We see strong demand for lower emissions frac technology
and are proud to maintain our position as the largest operator of
deployed Tier 4 DGB natural gas-powered fleets. We remain on target
to support our customers with natural gas delivery to the wellsite
from our new Power Solutions business beginning in the third
quarter, which will enable greater diesel displacement, lower
carbon emissions, and increased wellsite
efficiency."
"We were successful in maintaining our cash position, exiting
the first quarter with $272 million
in cash, even while maintaining our asset readiness and making
additional investments upgrading existing fleets to Tier 4 DGB and
in our Power Solutions business startup," said Kenny Pucheu, Chief Financial Officer for
NexTier. "The strong activity we experienced to end the first
quarter is carrying over into the second quarter, including an
improved commodity price environment and further tightening in the
market for natural gas-powered fleets. These dynamics are driving
increased fleet utilization, better calendar efficiency, and some
net pricing recovery."
First Quarter 2021 Financial Results
Revenue totaled $228.4
million in the first quarter of 2021, compared to $215.1 million in the fourth quarter of 2020. The
sequential improvement in revenue was driven by increased activity
levels in all business lines and improvements in net pricing,
largely offset by the impacts of the severe winter weather in
February 2021.
Net loss totaled $54.5 million, or
$0.25 per diluted share, in the first
quarter of 2021, compared to $60.2
million, or $0.28 per diluted
share in the fourth quarter of 2020. Adjusted net
loss(1) totaled $50.3
million, or $0.23 per diluted
share, in the first quarter of 2021, compared to Adjusted net loss
of $63.6 million, or $0.30 per diluted share, in the fourth quarter of
2020.
Selling, general and administrative expense ("SG&A") totaled
$16.1 million in the first
quarter of 2021, compared to SG&A of $23.7 million in the fourth quarter of 2020.
Adjusted SG&A(1) totaled $21.2 million in the first quarter of 2021,
compared to Adjusted SG&A of $20.6 million in the fourth quarter of
2020.
Adjusted EBITDA totaled $0.7
million in the first quarter of 2021, compared to Adjusted
EBITDA of $7.7 million in the fourth
quarter of 2020.
First Quarter 2021 Management Adjustments
Adjusted EBITDA for the first quarter of
2021 includes management net adjustments of approximately
$4.2 million, which were
primarily non-cash related. Net non-cash adjustments of
approximately $5.0 million were
largely comprised of market-driven facility closure and severance
costs, stock compensation expense, litigation accrual, and a loss
on a financial investment, partially offset by a favorable progress
on a pre-merger related tax audit. Approximately $1.0 million of management adjustments were
cash related.
Completion Services
Revenue in our Completion Services segment totaled $209.0 million in the first quarter of 2021,
compared to $200.5 million in the
fourth quarter of 2020. The sequential increase was primarily
driven by improved calendar efficiency, new fleet deployments, and
some net pricing traction, largely offset by the impacts of the
severe winter weather that resulted in approximately 10 days of
downtime in a majority of our operating locations. Adjusted Gross
Profit totaled $15.4 million in the
first quarter of 2021, compared to $23.6
million in the fourth quarter of 2020.
The Company had an average of 15 fully-utilized fracturing
fleets in the first quarter of 2021, and exited the first quarter
of 2021 with 15 fully-utilized and 18 deployed fleets. When taking
only fracturing and integrated wireline into account, annualized
Adjusted Gross Profit per fully-utilized fracturing fleet totaled
$4.1 million in the first
quarter of 2021, compared to $6.2 million in the fourth quarter of
2020.
Well Construction and Intervention Services
Revenue in our Well Construction and Intervention ("WC&I")
Services segment, totaled $19.4
million in the first quarter of 2021, compared to
$14.6 million in the fourth quarter
of 2020. The sequential improvement was primarily driven by
increased activity and market share growth in focused basins.
Adjusted Gross Profit totaled $1.7
million in the first quarter of 2021, compared to Adjusted
Gross Profit of $0.9 million in the
fourth quarter of 2020.
Balance Sheet and Capital
Total debt outstanding as of March 31,
2021 totaled $335.1 million,
net of debt discounts and deferred finance costs and excluding
lease obligations. As of March 31,
2021, total available liquidity was $353.0 million, comprised of cash of $271.6 million, and $81.4
million of available borrowing capacity under our
asset-based credit facility.
Total cash used in operations during the first quarter of 2021
was $23.2 million and cash used in
investing activities was $13.8
million, excluding $34.4
million from the receipt of cash for disposition of debt
securities and make-whole derivative received as part of the
consideration of the sale of our well services business to Basic
Energy Services, Inc. (collectively the "Basic Notes") in the first
quarter of 2020, resulting in a free cash flow use of $37.0 million in the first quarter of 2021.
Excluding net proceeds from market-driven cash settlements of
$1.4 million, gain on sale of
financial investment of $0.3 million,
and gain on receipt of payment for the Basic Notes of $0.8 million, adjusted free cash flow
use(1) totaled $36.7
million in the first quarter of 2021.
Outlook
For the second quarter of 2021, NexTier expects to deploy 20
fleets and operate the equivalent of 18 fully utilized fleets. The
combination of this increased activity, some net pricing recovery,
and the absence of additional abnormal winter weather impacts
experienced in the first quarter of 2021, is expected to drive
sequential revenue growth of at least 25% in the second quarter of
2021. This revenue growth, combined with better fixed cost
absorption and some improved calendar utilization, is expected to
result in adjusted EBITDA of between $18
million and $22 million for
the second quarter of 2021. NexTier continues to expect total
capital expenditures for the first half of 2021 of approximately
$60 million, comprised of maintenance
capex across product and service lines, including $3 million dollars per fleet per year for Frac,
as well as strategic investments in additional dual fuel
conversions and the continued development of its new Power
Solutions business. For the full year 2021, based on additional
momentum with customers expanding activity beyond the second
quarter of 2021, and assuming a similar economic and commodity
price environment, the Company currently expects full year 2021
Adjusted EBITDA to total at least $80
million.
"Despite the weather-related challenges experienced in the first
quarter, we anticipate exiting the second quarter with an Adjusted
EBITDA annual run-rate above $80
million in-line with our expectations as the market begins
to recover," stated Mr. Drummond. "Based on current visibility, we
anticipate the third quarter Adjusted EBITDA run rate further
improving to the point that we plan to achieve double digit
Adjusted EBITDA margins by the exit of 2021. As expected, 2021 will
be a transitional year for the U.S. oilfield services sector, and
we believe NexTier is well positioned with positive momentum as we
move into 2022."
Corporate Responsibility Report
NexTier recently published its Corporate Responsibility Report
for 2020, which highlights the Company's industry leadership in
prioritizing responsible operations including natural gas field
equipment to lower emissions. This report is available on the
Investor page of NexTier's website at
https://investors.nextierofs.com.
"I am pleased to share NexTier's 2020 Corporate Responsibility
Report," sated Mr. Drummond. "We are committed to environmental,
social, and governance (ESG) leadership for the benefit of all
stakeholders, including our shareholders, employees, and the
communities in which we live and work. The report highlights
initiatives demonstrating NexTier's priority to reduce the
environmental impact of our operations, a focal point of commitment
to ESG management."
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 May 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 first quarter 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 replay is 10155091. The replay will
be available until May 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) 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.
Non-GAAP financial measures include 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 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
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.
Non-GAAP Measure Definitions: 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.
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 the Company that are
forward-looking, including projections as to the Company's 2021
guidance and outlook information, 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
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 the Company serves; (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 the Company's operations; (viii)
the effect of a loss of, or interruption in operations of, one or
more key suppliers, including resulting from product defects,
recalls or suspensions; (ix) the variability of crude oil and
natural gas commodity prices; (x) the market price and availability
of materials or equipment; (xi) the ability to obtain permits,
approvals and authorizations from governmental and third parties;
(xii) the Company's ability to employ a sufficient number of
skilled and qualified workers to combat the operating hazards
inherent in the Company's industry; (xiii) fluctuations in the
market price of the Company's stock; (xiv) the level of, and
obligations associated with, the Company's indebtedness; (xv) the
duration, impact and severity of the COVID-19 pandemic and the
evolving response thereto, including the impact of social
distancing, shelter-in-place, shutdowns of non-essential businesses
and similar measures imposed or undertaken by governments, private
businesses or others; and (xvi) other risk factors and additional
information. 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
investors@nextierofs.com
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)
|
|
|
Three Months
Ended
|
|
March
31, 2021
|
|
December 31,
2020
|
|
|
|
|
Revenue
|
$
|
228,402
|
|
|
$
|
215,054
|
|
Operating costs and
expenses:
|
|
|
|
Cost of
services
|
217,777
|
|
|
191,511
|
|
Depreciation and
amortization
|
45,868
|
|
|
67,400
|
|
Selling, general and
administrative expenses
|
16,069
|
|
|
23,718
|
|
Merger and
integration
|
—
|
|
|
(959)
|
|
Gain on disposal of
assets
|
(4,592)
|
|
|
(2,519)
|
|
Total operating costs
and expenses
|
275,122
|
|
|
279,151
|
|
Operating
loss
|
(46,720)
|
|
|
(64,097)
|
|
Other income
(expense):
|
|
|
|
Other income
(expense), net
|
(2,719)
|
|
|
7,819
|
|
Interest expense,
net
|
(4,206)
|
|
|
(3,709)
|
|
Total other income
(expense)
|
(6,925)
|
|
|
4,110
|
|
Loss before income
taxes
|
(53,645)
|
|
|
(59,987)
|
|
Income tax
expense
|
(857)
|
|
|
(219)
|
|
Net
loss
|
$
|
(54,502)
|
|
|
$
|
(60,206)
|
|
|
|
|
|
Net loss per share:
basic
|
$
|
(0.25)
|
|
|
$
|
(0.28)
|
|
Net loss per share:
diluted
|
$
|
(0.25)
|
|
|
$
|
(0.28)
|
|
|
|
|
|
Weighted-average
shares: basic
|
215,110
|
|
|
214,315
|
|
Weighted-average
shares: diluted
|
215,110
|
|
|
214,315
|
|
NEXTIER OILFIELD
SOLUTIONS INC. AND SUBSIDIARIES
|
CONSOLIDATED
BALANCE SHEETS
|
(unaudited, amounts
in thousands)
|
|
|
|
March
31,
|
|
December
31,
|
|
|
2021
|
|
2020
|
ASSETS
|
|
|
|
|
Current
assets:
|
|
|
|
|
Cash and cash
equivalents
|
|
$
|
271,639
|
|
|
$
|
275,990
|
|
Trade and other
accounts receivable, net
|
|
163,540
|
|
|
122,584
|
|
Inventories,
net
|
|
31,621
|
|
|
30,068
|
|
Assets held for
sale
|
|
—
|
|
|
126
|
|
Prepaid and other
current assets
|
|
21,220
|
|
|
58,011
|
|
Total current
assets
|
|
488,020
|
|
|
486,779
|
|
Operating lease
right-of-use assets
|
|
29,273
|
|
|
37,157
|
|
Finance lease
right-of-use assets
|
|
772
|
|
|
1,132
|
|
Property and equipment,
net
|
|
456,712
|
|
|
470,711
|
|
Goodwill
|
|
104,198
|
|
|
104,198
|
|
Intangible
assets
|
|
47,779
|
|
|
51,182
|
|
Other noncurrent
assets
|
|
6,274
|
|
|
6,729
|
|
Total
assets
|
|
$
|
1,133,028
|
|
|
$
|
1,157,888
|
|
LIABILITIES AND
STOCKHOLDERS' EQUITY
|
|
|
|
|
Current
liabilities:
|
|
|
|
|
Accounts
payable
|
|
$
|
88,464
|
|
|
$
|
61,259
|
|
Accrued
expenses
|
|
125,266
|
|
|
134,230
|
|
Customer contract
liabilities
|
|
12,000
|
|
|
266
|
|
Current maturities of
operating lease liabilities
|
|
14,637
|
|
|
18,551
|
|
Current maturities of
finance lease liabilities
|
|
441
|
|
|
606
|
|
Current maturities of
long-term debt
|
|
2,310
|
|
|
2,252
|
|
Other current
liabilities
|
|
2,710
|
|
|
2,993
|
|
Total current
liabilities
|
|
245,828
|
|
|
220,157
|
|
Long-term operating
lease liabilities, less current maturities
|
|
24,351
|
|
|
24,232
|
|
Long-term finance lease
liabilities, less current maturities
|
|
293
|
|
|
504
|
|
Long-term debt, net of
unamortized deferred financing costs and unamortized debt discount,
less current maturities
|
|
332,779
|
|
|
333,288
|
|
Other non-current
liabilities
|
|
20,449
|
|
|
22,419
|
|
Total non-current
liabilities
|
|
377,872
|
|
|
380,443
|
|
Total
liabilities
|
|
623,700
|
|
|
600,600
|
|
Stockholders'
equity:
|
|
|
|
|
Common
stock
|
|
2,153
|
|
|
2,144
|
|
Paid-in capital in
excess of par value
|
|
994,179
|
|
|
989,995
|
|
Retained
deficit
|
|
(476,243)
|
|
|
(421,741)
|
|
Accumulated other
comprehensive loss
|
|
(10,761)
|
|
|
(13,110)
|
|
Total stockholders'
equity
|
|
509,328
|
|
|
557,288
|
|
Total liabilities
and stockholders' equity
|
|
$
|
1,133,028
|
|
|
$
|
1,157,888
|
|
NEXTIER OILFIELD
SOLUTIONS INC. AND SUBSIDIARIES
|
ADDITIONAL
SELECTED FINANCIAL AND OPERATING DATA
|
(unaudited, amounts
in thousands)
|
|
|
Three Months
Ended
|
|
March 31,
2021
|
|
December 31,
2020
|
Completion
Services:
|
|
|
|
Revenue
|
$
|
208,981
|
|
|
$
|
200,450
|
|
Cost of
services
|
199,680
|
|
|
177,777
|
|
Depreciation,
amortization, (gain) loss on sale of assets, and
impairment
|
34,408
|
|
|
56,149
|
|
Net loss
|
(25,107)
|
|
|
(33,476)
|
|
Adjusted gross
profit(1)
|
$
|
15,414
|
|
|
$
|
23,600
|
|
|
|
|
|
Well Construction
and Intervention Services:
|
|
|
|
Revenue
|
$
|
19,421
|
|
|
$
|
14,604
|
|
Cost of
services
|
18,097
|
|
|
13,734
|
|
Depreciation,
amortization, (gain) loss on sale of assets, and
impairment
|
2,203
|
|
|
3,199
|
|
Net loss
|
(879)
|
|
|
(2,329)
|
|
Adjusted gross
profit(1)
|
$
|
1,676
|
|
|
$
|
920
|
|
|
|
(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
|
|
|
March 31,
2021
|
|
December 31,
2020
|
Net
loss
|
|
$
|
(54,502)
|
|
|
$
|
(60,206)
|
|
Interest expense,
net
|
|
4,206
|
|
|
3,709
|
|
Income tax
expense
|
|
857
|
|
|
219
|
|
Depreciation and
amortization
|
|
45,868
|
|
|
67,400
|
|
EBITDA
|
|
$
|
(3,571)
|
|
|
$
|
11,122
|
|
Plus management
adjustments:
|
|
|
|
|
Acquisition,
integration and expansion(1)
|
|
—
|
|
|
(959)
|
|
Non-cash stock
compensation(2)
|
|
5,203
|
|
|
4,675
|
|
Market-driven
costs(3)
|
|
7,295
|
|
|
(650)
|
|
Divestiture of
business(4)
|
|
(785)
|
|
|
(617)
|
|
(Gain) loss on equity
security investment(5)
|
|
3,693
|
|
|
(6,000)
|
|
Litigation(6)
|
|
2,137
|
|
|
—
|
|
Pre-merger tax
audit(7)
|
|
(13,328)
|
|
|
|
Other
|
|
25
|
|
|
111
|
|
Adjusted
EBITDA
|
|
$
|
669
|
|
|
$
|
7,682
|
|
|
|
|
|
|
|
|
(1)
|
Represents
transaction and integration costs related to the merger.
|
(2)
|
Represents non-cash
amortization of equity awards issued under the Company's Incentive
Award Plan, excluding accelerations associated with market-driven
costs or acquisition, integration, and expansion costs.
|
(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 and (increase)/decrease in fair value of
the Basic Notes and make-whole derivative received for the first
and fourth quarter, respectively, as part of the sale of the Well
Support Services 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 pre-merger litigation.
|
(7)
|
Represents a
reduction of the Company's accrual related to a tax
audit.
|
NEXTIER OILFIELD
SOLUTIONS INC. AND SUBSIDIARIES
|
NON-GAAP FINANCIAL
MEASURES
|
(unaudited, amounts
in thousands)
|
|
|
|
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)
|
|
Pre-merger tax
audit
|
|
13,328
|
|
Other
|
|
(25)
|
|
Adjusted selling,
general and administrative expenses
|
|
$
|
21,202
|
|
|
|
|
Three Months
Ended
December 31, 2020
|
Selling, general
and administrative expenses
|
|
$
|
23,718
|
|
Less management
adjustments:
|
|
|
Non-cash stock
compensation
|
|
(4,675)
|
|
Market-driven
costs
|
|
1,627
|
|
Other
|
|
(111)
|
|
Adjusted selling,
general and administrative expenses
|
|
$
|
20,559
|
|
|
|
|
Three Months
Ended
March 31, 2020
|
Selling, general
and administrative expenses
|
|
$
|
56,884
|
|
Less management
adjustments:
|
|
|
Non-cash stock
compensation
|
|
(5,451)
|
|
Market-driven
costs
|
|
(5,011)
|
|
Other
|
|
1,460
|
|
Adjusted selling,
general and administrative expenses
|
|
$
|
47,882
|
|
NEXTIER OILFIELD
SOLUTIONS INC. AND SUBSIDIARIES
|
NON-GAAP FINANCIAL
MEASURES
|
(unaudited, amounts
in thousands)
|
|
|
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
December 31, 2020
|
|
Completion
Services
|
|
WC&I
|
|
Total
|
Revenue
|
$
|
200,450
|
|
|
$
|
14,604
|
|
|
$
|
215,054
|
|
Cost of
services
|
177,777
|
|
|
13,734
|
|
|
191,511
|
|
Gross profit
excluding depreciation and amortization
|
22,673
|
|
|
870
|
|
|
23,543
|
|
Management
adjustments associated with cost of services
|
927
|
|
|
50
|
|
|
977
|
|
Adjusted gross
profit
|
$
|
23,600
|
|
|
$
|
920
|
|
|
$
|
24,520
|
|
|
|
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
|
|
|
|
Three Months
Ended
|
|
|
December 31,
2020
|
|
|
Frac &
Integrated Wireline
|
Revenue
|
|
$
|
185,993
|
|
Cost of
services
|
|
165,006
|
|
Gross profit
excluding depreciation and amortization
|
|
20,987
|
|
Management
adjustments associated with cost of services
|
|
856
|
|
Adjusted gross
profit
|
|
$
|
21,843
|
|
|
|
|
Average hydraulic
fracturing fleets deployed
|
|
17
|
|
Fully-utilized
hydraulic fracturing fleets
|
|
14
|
|
Annualized adjusted
gross profit per fully-utilized fleet
|
|
$
|
6,241
|
|
NEXTIER OILFIELD
SOLUTIONS INC. AND SUBSIDIARIES
|
NON-GAAP FINANCIAL
MEASURES
|
(unaudited, amounts
in thousands)
|
|
|
Three Months
Ended
|
|
|
|
|
March 31,
2021
|
Net cash used in
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.
|
|
|
Three Months
Ended
|
|
|
|
|
December 31,
2020
|
Net cash used by
operating activities
|
|
$
|
(13,791)
|
|
Net cash used in
investing activities
|
|
(12,535)
|
|
Free cash
flow
|
|
(26,326)
|
|
Acquisition,
integration and expansion(2)
|
|
2,424
|
|
Market-driven
costs(2)
|
|
(1,493)
|
|
Adjusted free cash
flow
|
|
$
|
(25,395)
|
|
|
|
(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
|
|
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
|
|
Pre-merger 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
|
|
NEXTIER OILFIELD
SOLUTIONS INC. AND SUBSIDIARIES
|
NON-GAAP FINANCIAL
MEASURES
|
(unaudited, amounts
in thousands)
|
|
|
Three Months
Ended
|
|
December 31,
2020
|
Net loss
|
$
|
(60,206)
|
|
Plus management
adjustments:
|
|
Acquisition,
integration and expansion
|
(959)
|
|
Non-cash stock
compensation
|
4,675
|
|
Market-driven
costs
|
(650)
|
|
Divestiture of
business
|
(617)
|
|
Gain (loss) on equity
security investment
|
(6,000)
|
|
Other
|
111
|
|
Adjusted net
loss
|
$
|
(63,646)
|
|
|
|
Adjusted net loss per
share, basic and diluted
|
$
|
(0.30)
|
|
|
|
Weighted-average
shares, basic and diluted
|
214,315
|
|
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SOURCE NexTier Oilfield Solutions