DAX+0,86 % EUR/USD-0,03 % Gold0,00 % Öl (Brent)0,00 %

NexTier Announces Third Quarter 2019 Financial and Operational Results

Nachrichtenquelle: Business Wire (engl.)
06.11.2019, 23:49  |  2250   |   |   

NexTier Oilfield Solutions Inc. (NYSE: NEX) (“NexTier” or the “Company”) today reported third quarter 2019 financial and operational results. On October 31, 2019, NexTier completed its previously announced merger between Keane Group, Inc. (“Keane”) and C&J Energy Services, Inc. (“C&J”), and concurrent with closing, Keane, as the parent company, was renamed NexTier Oilfield Solutions Inc. Given the completion of the merger subsequent to the third quarter of 2019, results for NexTier reflect the performance of Keane only.

Results and Recent Highlights

  • Reported third quarter 2019 revenue of $444.0 million, compared to second quarter 2019 of $427.7 million
  • Realized third quarter 2019 net income of $3.6 million, compared to second quarter 2019 net loss of $5.0 million
  • Achieved third quarter 2019 Adjusted EBITDA of $88.8 million, compared to second quarter 2019 of $82.4 million
  • Generated third quarter 2019 free cash flow of $42 million and $87 million year to date through third quarter 2019

Merger Related Highlights

  • Keane and C&J merger closed on October 31, 2019, creating an industry-leading U.S. land completions provider
  • Increased expected synergies to $125 million; accelerated timing to achieve run-rate by end of second quarter 2020
  • Rationalized marketed asset base including 10% reduction in frac fleet count to 45 marketed fleets
  • Expanded ABL credit facility to $450 million; pro-forma net debt of $3 million and total liquidity of $712 million

Third Quarter 2019 Financial Results

Revenue for the third quarter of 2019 totaled $444.0 million, an increase of 4%, compared to $427.7 million for the second quarter of 2019. Net income per share for the third quarter of 2019 was $0.03, compared to net loss per share of $0.05 for the second quarter of 2019.

Adjusted Gross Profit for the third quarter of 2019 was $110.5 million, compared to $103.2 million for the second quarter of 2019. Selling, general and administrative expenses for the third quarter of 2019 totaled $33.2 million, compared to $32.6 million for the second quarter of 2019. Excluding management adjustments, selling, general and administrative expenses for the third quarter of 2019 totaled $21.1 million, compared to $21.2 million for the second quarter of 2019. Adjusted EBITDA for the third quarter of 2019 totaled $88.8 million, compared to $82.4 million for the second quarter of 2019.

“Our business performed well throughout the third quarter of 2019, as we extended our track-record of delivering on our commitments despite a challenging market backdrop,” said Robert Drummond, President and Chief Executive Officer of NexTier. “Our strong quarterly performance reflects our continued focus on cost management and efficiency, and resulted in another quarter of strong profitability per fleet and $42 million of free cash flow generation.”

Completion Services

Revenue for Completion Services totaled $437.3 million for the third quarter of 2019, an increase of 4%, compared to $420.4 million for the second quarter of 2019, driven primarily by driven by continued execution and efficiency. Adjusted Gross Profit for Completion Services totaled $109.3 million for the third quarter of 2019, compared to $102.1 million for the second quarter of 2019.

For the third quarter of 2019, the Company had an average of 22 fully-utilized fleets. Annualized revenue per average deployed hydraulic fracturing fleet for the third quarter of 2019 was $79.5 million, compared to $76.4 million for the second quarter of 2019. Annualized Adjusted Gross Profit per fleet totaled $19.9 million, compared to $18.6 million for the second quarter of 2019.

Other Services

Revenue in Other Services for the third quarter of 2019 totaled $6.6 million, compared to $7.4 million for the second quarter of 2019. Adjusted Gross Profit for the third quarter of 2019 was $1.2 million.

Third Quarter 2019 Management Adjustments

Adjusted EBITDA for the third quarter of 2019 includes adjustments of $12.2 million, driven by $6.7 million of transaction costs related to the merger with C&J and $5.5 million of non-cash stock compensation expense.

Balance Sheet and Capital

Total debt outstanding as of September 30, 2019 was $338.3 million, net of unamortized debt discounts and unamortized deferred charges and excluding lease obligations, compared to $339.0 million as of June 30, 2019. As of September 30, 2019, cash and equivalents totaled $157.0 million, compared to $117.1 million as of June 30, 2019.

Total available liquidity as of September 30, 2019 was approximately $323 million, which included availability under our asset-based credit facility. Total operating cash flow for the third quarter of 2019 was approximately $84 million. Total investing cash flow was approximately $42 million, resulting in free cash flow of approximately $42 million for the third quarter of 2019.

NexTier

Merger Update

C&J and Keane completed its previously announced merger on October 31, 2019, creating an industry-leading U.S. land completions provider called NexTier Oilfield Solutions Inc. NexTier’s common stock began trading on the New York Stock Exchange under the ticker symbol “NEX” on October 31, 2019.

“We are excited to complete our merger as planned, creating an industry-leading U.S. land completions provider,” said Robert Drummond. “I appreciate the tremendous efforts made by our collective team to achieve this milestone, and look forward to achieving continued success as NexTier. Our leadership team is laser focused on executing across NexTier’s four points of distinction, including our commitment to partnerships, safety, efficiency, and innovation.”

Synergy Update

The Company previously announced its expectation to achieve $100 million of run-rate cost synergies within one year of closing. NexTier now expects to realize $125 million of run-rate cost synergies by the end of the second quarter of 2020.

“The upsize in magnitude and acceleration in timing of our synergy commitment reflects the complementary nature of our asset base and deep experience in integration planning and execution,” said Greg Powell, Executive Vice President and Chief Integration Officer of NexTier. “Our robust integration planning process has revealed additional opportunities, and we remain highly confident in our ability to achieve our targets, while ensuring strong customer execution.”

Asset Portfolio Update

On a combined basis at closing, NexTier owned a combined fleet of approximately 2.3 million horsepower, representing 50 total hydraulic fracturing fleets. NexTier conducted a thorough review of its joint asset base as part of the Company’s integration planning. As a result of synchronizing horsepower definitions across companies, establishing fleet configurations to account for increasing job intensity, and removing assets from service, the Company has effectively reduced its marketed hydraulic fracturing asset base to 2.2 million horsepower, representing 45 total hydraulic fracturing fleets. Separately, the Company has made a number of asset retirements across its other service areas, including wireline, coiled tubing, cementing, and well services.

“We are happy to contribute to industry capacity rationalization through a sizable reduction in our effective marketed asset base,” said Robert Drummond. “As a result, our asset portfolio is even better positioned to deliver leading safety, efficiency and service quality for customers.”

Balance Sheet and Capital

Pro-forma total debt as of September 30, 2019 was approximately $338 million, net of unamortized debt discounts and unamortized deferred charges and excluding lease obligations. Pro-forma cash and equivalents as of September 30, 2019 was approximately $335 million, resulting in pro-forma net debt of approximately $3 million.

Concurrent with the closing of the merger, NexTier expanded its asset based revolving credit facility from $300 million to $450 million. Total pro-forma liquidity as of September 30, 2019 was $712 million, which includes $335 million in cash and $377 million of availability under our expanded asset based credit facility.

Guidance and Outlook

NexTier’s total revenue for the fourth quarter of 2019, covering the three months ended December 31, 2019, is expected to range between $600 million and $650 million, including between $310 million and $340 million for legacy Keane, and between $290 million and $310 million for legacy C&J. Adjusted EBTDA for the fourth quarter of 2019 is expected to range between $60 million and $75 million, including between $50 million and $60 million for legacy Keane operations, and between $10 million and $15 million for legacy C&J operations. The reduction relative to the third quarter of 2019 is primarily driven by lower utilization, mainly due to customer budget exhaustion and seasonality, as well as continued competitive pricing.

“Market conditions for U.S. completions will be challenging during the fourth quarter, driven by E&P budget exhaustion and seasonality,” said Jan Kees van Gaalen, Executive Vice President and Chief Financial Officer of NexTier. “Regardless of the industry backdrop, NexTier is uniquely positioned to deliver value to all stakeholders, supported by leading safety and service quality, profitability, balance sheet strength, and a commitment to further investment in innovation.”

Conference Call

On November 7, 2019, NexTier will hold a conference call for investors at 7:30 a.m. Central Time (8:30 a.m. Eastern Time) to discuss third quarter 2019 results. Hosting the call will be management of NexTier, including Robert Drummond, President and Chief Executive Officer, Greg Powell, Executive Vice President and Chief Integration Officer, and Jan Kees van Gaalen, Executive Vice President and Chief Financial Officer. The call can be accessed live over the telephone by dialing (877) 407-9208, or for international callers, (201) 493-6784. A replay will be available shortly after the call and can be accessed by dialing (844) 512-2921, or for international callers, (412) 317-6671. The passcode for the replay is 13695108. The replay will be available until November 21, 2019.

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.

Definitions of Non-GAAP Financial Measures and Other Items

The Company has included both financial measures compiled in accordance with GAAP and certain non-GAAP financial measures in this press release, including Adjusted EBITDA and Adjusted Gross Profit and ratios based on these financial measures. 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. 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 and Adjusted Gross Profit provide helpful information to analysts and investors to facilitate a comparison of its operating performance to that of other companies.

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.

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 anticipated benefits of the proposed transaction, the impact of the proposed transaction on the Company’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 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; 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 prompt and effective integration of C&J’s businesses into the Company and the ability to achieve the anticipated synergies and value-creation contemplated by the proposed transaction. For a more detailed discussion of such risks and other factors, see the Company’s and C&J’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 and Form 10-K/A for the fiscal year ended December 31, 2018, filed on February 27, 2019 and August 19, 2019, respectively, and C&J’s Annual Report on Form 10-K for the fiscal year ended December 31, 2018, filed on February 27, 2019 and in other periodic filings, available on the SEC website or www.NexTierOFS.com or www.cjenergy.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 of this press release, 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.

NEXTIER OILFIELD SOLUTIONS INC. AND SUBSIDIARIES

(formerly Keane Group, Inc.)

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS & COMPREHENSIVE INCOME (LOSS)

(in thousands, except per share data)

 

 

Three Months Ended
September 30,

 

Three Months Ended
June 30,

 

2019

 

2018

 

2019

 

(Unaudited)

 

(Unaudited)

 

(Unaudited)

Revenue

$

 

443,953

 

 

$

 

558,908

 

 

$

 

427,733

 

Operating costs and expenses:

 

 

 

 

 

Cost of services

 

333,438

 

 

 

436,799

 

 

 

324,503

 

Depreciation and amortization

 

68,708

 

 

 

68,287

 

 

 

69,886

 

Selling, general and administrative
expenses

 

33,230

 

 

 

27,783

 

 

 

32,571

 

(Gain) loss on disposal of assets

 

679

 

 

 

1,113

 

 

 

(330

)

Total operating costs and expenses

 

436,055

 

 

 

533,982

 

 

 

426,630

 

Operating income

 

7,898

 

 

 

24,926

 

 

 

1,103

 

Other income (expenses):

 

 

 

 

 

Other income (expense), net

 

55

 

 

 

14,454

 

 

 

(43

)

Interest expense

 

(5,215

)

 

 

(5,978

)

 

 

(5,477

)

Total other income (expense)

 

(5,160

)

 

 

8,476

 

 

 

(5,520

)

Income (loss) before income taxes

 

2,738

 

 

 

33,402

 

 

 

(4,417

)

Income tax benefit (expense)

 

820

 

 

 

(2,623

)

 

 

(564

)

Net income (loss)

 

3,558

 

 

 

30,779

 

 

 

(4,981

)

Other comprehensive income (loss):

 

 

 

 

 

Foreign currency translation adjustments

 

 

 

28

 

 

 

Hedging activities

 

(2,120

)

 

 

1,119

 

 

 

(3,682

)

Total comprehensive income (loss)

$

 

1,438

 

 

$

 

31,926

 

 

$

 

(8,663

)

 

 

 

 

 

 

Net income (loss) per share: basic

$

 

0.03

 

 

$

 

0.28

 

 

$

 

(0.05

)

Net income (loss) per share: diluted

$

 

0.03

 

 

$

 

0.28

 

 

$

 

(0.05

)

 

 

 

 

 

 

Weighted-average shares: basic

 

104,899

 

 

 

108,825

 

 

 

104,837

 

Weighted-average shares: diluted

 

105,259

 

 

 

108,990

 

 

 

104,837

 

 

 

 

 

 

 

NEXTIER OILFIELD SOLUTIONS INC. AND SUBSIDIARIES

(formerly Keane Group, Inc.)

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS & COMPREHENSIVE INCOME (LOSS)

(in thousands, except per share data)

 

Nine Months Ended
September 30,

 

2019

 

2018

 

(Unaudited)

 

(Unaudited)

Revenue

$

 

1,293,340

 

 

$

 

1,650,457

 

Operating costs and expenses:

 

 

 

Cost of services

 

995,587

 

 

 

1,287,892

 

Depreciation and amortization

 

210,069

 

 

 

187,742

 

Selling, general and administrative expenses

 

93,737

 

 

 

85,792

 

Loss on disposal of assets

 

831

 

 

 

5,169

 

Total operating costs and expenses

 

1,300,224

 

 

 

1,566,595

 

Operating income (loss)

 

(6,884

)

 

 

83,862

 

Other income (expenses):

 

 

 

Other income, net

 

460

 

 

 

1,481

 

Interest expense

 

(16,087

)

 

 

(27,285

)

Total other expenses

 

(15,627

)

 

 

(25,804

)

Income (loss) before income taxes

 

(22,511

)

 

 

58,058

 

Income tax expense

 

(718

)

 

 

(4,855

)

Net income (loss)

 

(23,229

)

 

 

53,203

 

Other comprehensive income (loss):

 

 

 

Foreign currency translation adjustments

 

(29

)

 

 

(37

)

Hedging activities

 

(8,664

)

 

 

3,429

 

Total comprehensive income (loss)

$

 

(31,922

)

 

$

 

56,595

 

 

 

 

 

Net income (loss) per share: basic

$

 

(0.22

)

 

$

 

0.48

 

Net income (loss) per share: diluted

$

 

(0.22

)

 

$

 

0.48

 

 

 

 

 

Weighted-average shares, basic

 

104,721

 

 

 

110,706

 

Weighted-average shares, diluted

 

105,080

 

 

 

110,871

 

 

 

 

 

NEXTIER OILFIELD SOLUTIONS INC. AND SUBSIDIARIES

(formerly Keane Group, Inc.)

CONDENSED CONSOLIDATED BALANCE SHEETS

(in thousands)

 

ASSETS

 

September 30,

 

December 31,

 

 

2019

 

2018

 

 

(Unaudited)

 

(Audited)

Current Assets:

 

 

 

 

Cash and cash equivalents

 

$

 

157,025

 

 

$

 

80,206

 

Accounts receivable

 

 

196,222

 

 

 

210,428

 

Inventories, net

 

 

21,585

 

 

 

35,669

 

Assets held for sale

 

 

264

 

 

 

176

 

Prepaid and other current assets

 

 

6,309

 

 

 

5,784

 

Total current assets

 

 

381,405

 

 

 

332,263

 

Operating lease right-of-use assets

 

 

41,429

 

 

 

Finance lease right-of-use assets

 

 

8,971

 

 

 

Property and equipment, net

 

 

437,262

 

 

 

531,319

 

Goodwill

 

 

132,524

 

 

 

132,524

 

Intangible assets

 

 

51,080

 

 

 

51,904

 

Other noncurrent assets

 

 

6,156

 

 

 

6,569

 

Total Assets

 

$

 

1,058,827

 

 

$

 

1,054,579

 

LIABILITIES AND SHAREHOLDERS’ EQUITY

 

 

 

 

Current liabilities:

 

 

 

 

Accounts payable

 

$

 

106,118

 

 

$

 

106,702

 

Accrued expenses

 

 

79,249

 

 

 

101,539

 

Current maturities of operating lease liabilities

 

 

19,378

 

 

 

Current maturities of finance lease liabilities

 

 

4,175

 

 

 

4,928

 

Current maturities of long-term debt

 

 

2,352

 

 

 

2,776

 

Customer contract liabilities

 

 

471

 

 

 

60

 

Stock based compensation

 

 

 

 

4,281

 

Other current liabilities

 

 

1,626

 

 

 

294

 

Total current liabilities

 

 

213,369

 

 

 

220,580

 

Long-term operating lease liabilities, less current maturities

 

 

22,061

 

 

 

Long-term finance lease liabilities, less current maturities

 

 

5,550

 

 

 

5,581

 

Long-term debt, net(1) less current maturities

 

 

335,965

 

 

 

337,954

 

Other non-current liabilities

 

 

9,878

 

 

 

3,283

 

Total non-current liabilities

 

 

373,454

 

 

 

346,818

 

Total liabilities

 

 

586,823

 

 

 

567,398

 

Shareholders’ equity:

 

 

 

 

Stockholders’ equity

 

 

472,400

 

 

 

456,485

 

Retained earnings

 

 

9,595

 

 

 

31,494

 

Accumulated other comprehensive loss

 

 

(9,991

)

 

 

(798

)

Total shareholders’ equity

 

 

472,004

 

 

 

487,181

 

Total liabilities and shareholders’ equity

 

$

 

1,058,827

 

 

$

 

1,054,579

 

 

 

 

 

 

(1)

Net of unamortized deferred financing costs and unamortized debt discounts.

NEXTIER OILFIELD SOLUTIONS INC. AND SUBSIDIARIES

(formerly Keane Group, Inc.)

ADDITIONAL SELECTED FINANCIAL AND OPERATING DATA

(unaudited, amounts in thousands, except for non-financial statistics)

 

 

Three Months Ended

September 30,

 

Three Months Ended
June 30,

 

2019

 

2018

 

2019

Completion Services:

 

 

 

 

 

Revenues

$

 

437,343

 

 

$

 

548,418

 

 

$

 

420,363

 

Cost of services

 

328,029

 

 

 

425,928

 

 

 

318,232

 

Depreciation and amortization

 

64,735

 

 

 

64,579

 

 

 

65,672

 

Operating income

$

 

43,505

 

 

$

 

56,771

 

 

$

 

36,857

 

 

 

 

 

 

 

Average hydraulic fracturing fleets
deployed

 

23.0

 

 

 

27.0

 

 

 

23.0

 

Average hydraulic fracturing fleet
utilization(1)

 

96

%

 

 

89

%

 

 

96

%

Wireline - fracturing fleet integration
percentages

 

88

%

 

 

77

%

 

 

79

%

Average annualized revenue per fleet
deployed(2)

$

 

79,517

 

 

$

 

91,403

 

 

$

 

76,430

 

Average annualized adjusted gross
profit per fleet deployed(2)

$

 

19,875

 

 

$

 

20,453

 

 

$

 

18,569

 

Adjusted gross profit

$

 

109,314

 

 

$

 

122,717

 

 

$

 

102,130

 

 

 

 

 

 

 

Other Services:

 

 

 

 

 

Revenues

$

 

6,610

 

 

$

 

10,490

 

 

$

 

7,370

 

Cost of services

 

5,409

 

 

 

10,871

 

 

 

6,271

 

Depreciation and amortization

 

502

 

 

 

840

 

 

 

631

 

Operating income (loss)

 

699

 

 

 

(1,221

)

 

 

468

 

Adjusted gross profit (loss)

$

 

1,201

 

 

$

 

(381

)

 

$

 

1,099

 

 

 

 

 

 

 

(1)

Average hydraulic frac fleet utilization is calculated using fully-utilized fleets divided by deployed fleets.

(2)

For the third quarter of 2019, average annualized revenue per fleet deployed and average annualized adjusted gross profit per fleet deployed was calculated using the equivalent of 22.0 fully-utilized hydraulic fracturing fleets. For the second quarter of 2019, average annualized revenue per fleet deployed and average annualized adjusted gross profit per fleet deployed was calculated using the equivalent of 22.0 fully-utilized hydraulic fracturing fleets.

NEXTIER OILFIELD SOLUTIONS INC. AND SUBSIDIARIES

(formerly Keane Group, Inc.)

ADDITIONAL SELECTED FINANCIAL AND OPERATING DATA

(unaudited, amounts in thousands, except for non-financial statistics)


 

Nine Months Ended
September 30,

 

2019

 

2018

Completion Services:

 

 

 

Revenues

$

 

1,269,681

 

 

$

 

1,625,798

 

Cost of services

 

972,932

 

 

 

1,261,676

 

Depreciation and amortization

 

197,152

 

 

 

174,376

 

Operating income

$

 

98,331

 

 

$

 

186,731

 

 

 

 

 

Average hydraulic fracturing fleets deployed

 

23.0

 

 

 

26.4

 

Average hydraulic fracturing fleet utilization(1)

 

94

%

 

 

96

%

Wireline - fracturing fleet integration percentages

 

82

%

 

 

75

%

Average annualized revenue per fleet deployed(2)

$

 

78,014

 

 

$

 

85,344

 

Average annualized adjusted gross profit per fleet deployed(2)

$

 

18,233

 

 

$

 

19,126

 

Adjusted gross profit

$

 

296,749

 

 

$

 

364,349

 

 

 

 

 

Other Services:

 

 

 

Revenues

$

 

23,659

 

 

$

 

24,659

 

Cost of services

 

22,655

 

 

 

26,216

 

Depreciation, amortization and administrative expenses, and
impairment

 

2,007

 

 

 

3,557

 

Operating loss

 

(1,003

)

 

 

(5,114

)

Adjusted gross profit (loss)

$

 

1,004

 

 

$

 

(1,557

)

 

 

 

 

(1)

Average hydraulic frac fleet utilization is calculated using fully-utilized fleets divided by deployed fleets.

(2)

For the nine months ended September 30, 2019, average annualized revenue per fleet deployed and average annualized adjusted gross profit per fleet deployed was calculated using the equivalent of 21.7 fully-utilized hydraulic fracturing fleets.

NEXTIER OILFIELD SOLUTIONS INC. AND SUBSIDIARIES

(formerly Keane Group, Inc.)

NON-U.S. GAAP FINANCIAL MEASURES

(unaudited, in thousands)

 

 

 

 

 

 

 

 

 

Three Months Ended September 30, 2019

 

Completion
Services

 

Other
Services

 

Corporate and
Other

 

Total

Net Income (loss)

$

 

43,505

 

 

$

 

699

 

 

$

 

(40,646

)

 

$

 

3,558

 

Interest expense, net

 

 

 

 

 

5,215

 

 

 

5,215

 

Income tax benefit

 

 

 

 

 

(820

)

 

 

(820

)

Depreciation and amortization

 

64,735

 

 

 

502

 

 

 

3,471

 

 

 

68,708

 

EBITDA

$

 

108,240

 

 

$

 

1,201

 

 

$

 

(32,780

)

 

$

 

76,661

 

Plus Management Adjustments:

 

 

 

 

 

 

 

Acquisition, integration and expansion(1)

 

 

 

 

 

6,651

 

 

 

6,651

 

Non-cash stock compensation (2)

 

 

 

 

 

5,488

 

 

 

5,488

 

Adjusted EBITDA

$

 

108,240

 

 

$

 

1,201

 

 

$

 

(20,641

)

 

$

 

88,800

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended September 30, 2019

 

 

Corporate and Other

Selling, general and administrative expenses

 

$

 

33,230

 

Less Management Adjustments:

 

 

Acquisition, integration and expansion(1)

 

 

6,651

 

Non-cash stock compensation (2)

 

 

5,488

 

Adjusted selling, general and administrative

 

$

 

21,091

 

(1)

Represents transaction costs related to the Merger with C&J recorded in selling, general and administrative expenses.

(2)

Represents non-cash amortization of equity awards issued under the Company’s Incentive Award Plan (the "Equity Plan"). According to the Equity Plan, the Compensation Committee of the Board of Directors can approve awards in the form of restricted stock, restricted stock units, and/or other deferred compensation. Consistent with prior policy, amortization of awards is made ratably over the vesting periods, beginning with the grant date, based on the total fair value determined on grant date and recorded in selling, general and administrative expenses.

NEXTIER OILFIELD SOLUTIONS INC. AND SUBSIDIARIES

(formerly Keane Group, Inc.)

NON-U.S. GAAP FINANCIAL MEASURES

(unaudited, in thousands)

 

 

 

 

 

 

 

 

 

Three Months Ended June 30, 2019

 

Completion
Services

 

Other
Services

 

Corporate
and Other

 

Total

Net Income (loss)

$

 

36,856

 

 

$

 

468

 

 

$

 

(42,305

)

 

$

 

(4,981

)

Interest expense, net

 

 

 

 

 

5,477

 

 

 

5,477

 

Income tax benefit

 

 

 

 

 

564

 

 

 

564

 

Depreciation and amortization

 

65,672

 

 

 

631

 

 

 

3,583

 

 

 

69,886

 

EBITDA

$

 

102,528

 

 

$

 

1,099

 

 

$

 

(32,681

)

 

$

 

70,946

 

Plus Management Adjustments:

 

 

 

 

 

 

 

Acquisition, integration and expansion (1)

 

 

 

 

 

6,108

 

 

 

6,108

 

Non-cash stock compensation (2)

 

 

 

 

 

5,637

 

 

 

5,637

 

Other

 

 

 

 

 

(326

)

 

 

(326

)

Adjusted EBITDA

$

 

102,528

 

 

$

 

1,099

 

 

$

 

(21,262

)

 

$

 

82,365

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended June 30, 2019

 

 

Corporate and Other

Selling, general and administrative expenses

 

$

 

32,571

 

Less Management Adjustments:

 

 

Acquisition, integration and expansion(1)

 

 

6,108

 

Non-cash stock compensation (2)

 

 

5,637

 

Other

 

$

 

(326

)

Adjusted selling, general and administrative

 

$

 

21,152

 

(1)

Represents transaction costs related to the Merger with C&J recorded in selling, general and administrative expenses.

(2)

Represents non-cash amortization of equity awards issued under the Equity Plan. According to the Equity Plan, the Compensation Committee of the Board of Directors can approve awards in the form of restricted stock, restricted stock units, and/or other deferred compensation. Consistent with prior policy, amortization of awards is made ratably over the vesting periods, beginning with the grant date, based on the total fair value determined on grant date and recorded in selling, general and administrative expenses.

NEXTIER OILFIELD SOLUTIONS INC. AND SUBSIDIARIES

(formerly Keane Group, Inc.)

NON-U.S. GAAP FINANCIAL MEASURES

(unaudited, in thousands)

 

 

 

 

 

 

 

 

 

Three Months Ended September 30, 2018

 

Completion
Services

 

Other
Services

 

Corporate and
Other

 

Total

Net Income (loss)

$

 

56,771

 

 

$

 

(1,221

)

 

$

 

(24,771

)

 

$

 

30,779

 

Interest expense, net

 

 

 

 

 

5,978

 

 

 

5,978

 

Income tax expense

 

 

 

 

 

2,623

 

 

 

2,623

 

Depreciation and amortization

 

64,579

 

 

 

840

 

 

 

2,868

 

 

 

68,287

 

EBITDA

$

 

121,350

 

 

$

 

(381

)

 

$

 

(13,302

)

 

$

 

107,667

 

Plus Management Adjustments:

 

 

 

 

 

 

 

Acquisition, integration and expansion (1)

 

227

 

 

 

 

 

301

 

 

 

528

 

Non-cash stock compensation (2)

 

 

 

 

 

4,809

 

 

 

4,809

 

Others (3)

 

 

 

 

 

(12,127

)

 

 

(12,127

)

Adjusted EBITDA

$

 

121,577

 

 

$

 

(381

)

 

$

 

(20,319

)

 

$

 

100,877

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended September 30, 2018

 

 

Corporate and Other

Selling, general and administrative expenses

 

$

 

27,783

 

Less Management Adjustments:

 

 

Acquisition, integration and expansion(1)

 

 

301

 

Non-cash stock compensation (2)

 

 

4,809

 

Others (3)

 

$

 

2,765

 

Adjusted selling, general and administrative

 

$

 

19,908

 

(1)

 

Represents integration costs related to the asset acquisition from Refinery Specialties, Incorporated (“RSI”), of which $0.2 million was recorded in cost of services and $0.3 million was recorded in selling, general and administrative expenses.

(2)

 

Represents non-cash amortization of equity awards issued under the Equity Plan. According to the Equity Plan, the Compensation Committee of the Board of Directors can approve awards in the form of restricted stock, restricted stock units, and/or other deferred compensation. Consistent with prior policy, amortization of awards is made ratably over the vesting periods, beginning with the grant date, based on the total fair value determined on grant date and recorded in selling, general and administrative expenses.

(3)

 

Represents gain of $14.9 million recognized for insurance proceeds received in connection with a fire that damaged a portion of one hydraulic fracturing fleet on July 1, 2018, which was recorded in (gain) loss on disposal of assets, offset by $2.8 million of legal contingencies, which were recorded in selling, general and administrative expenses.

NEXTIER OILFIELD SOLUTIONS INC. AND SUBSIDIARIES

(formerly Keane Group, Inc.)

NON-U.S. GAAP FINANCIAL MEASURES

(unaudited, in thousands)

 

 

 

 

 

 

 

 

 

Nine Months Ended September 30, 2019

 

Completion
Services

 

Other
Services

 

Corporate and
Other

 

Total

Net Income (loss)

$

 

98,331

 

 

$

 

(1,003

)

 

$

 

(120,557

)

 

$

 

(23,229

)

Interest expense, net

 

 

 

 

 

16,087

 

 

 

16,087

 

Income tax expense

 

 

 

 

 

718

 

 

 

718

 

Depreciation and amortization

 

197,152

 

 

 

2,007

 

 

 

10,910

 

 

 

210,069

 

EBITDA

$

 

295,483

 

 

$

 

1,004

 

 

$

 

(92,842

)

 

$

 

203,645

 

Plus Management Adjustments:

 

 

 

 

 

 

 

Acquisition, integration and expansion (1)

 

 

 

 

 

12,759

 

 

 

12,759

 

Non-cash stock compensation (2)

 

 

 

 

 

15,098

 

 

 

15,098

 

Others (3)

 

 

 

 

 

3,794

 

 

 

3,794

 

Adjusted EBITDA

$

 

295,483

 

 

$

 

1,004

 

 

$

 

(61,191

)

 

$

 

235,296

 

 

 

 

 

 

 

 

 

 

 

Nine Months Ended September 30, 2019

 

 

Corporate and Other

Selling, general and administrative expenses

 

$

93,737

 

Less Management Adjustments:

 

 

Acquisition, integration and expansion(1)

 

12,759

 

Non-cash stock compensation (2)

 

15,098

 

Others (3)

 

$

3,794

 

Adjusted selling, general and administrative

 

$

62,086

 

(1)

 

Represents transaction costs related to the Merger with C&J recorded in selling, general and administrative expenses.

(2)

 

Represents non-cash amortization of equity awards issued under the Equity Plan. According to the Equity Plan, the Compensation Committee of the Board of Directors can approve awards in the form of restricted stock, restricted stock units, and/or other deferred compensation. Consistent with prior policy, amortization of awards is made ratably over the vesting periods, beginning with the grant date, based on the total fair value determined on grant date and recorded in selling, general and administrative expenses.

(3)

 

Represents legal contingencies, which is recorded in selling, general and administrative expenses.

NEXTIER OILFIELD SOLUTIONS INC. AND SUBSIDIARIES

(formerly Keane Group, Inc.)

NON-U.S. GAAP FINANCIAL MEASURES

(unaudited, in thousands)

 

 

 

 

 

 

 

 

 

Nine Months Ended September 30, 2018

 

Completion
Services

 

Other
Services

 

Corporate and
Other

 

Total

Net Income (loss)

$

 

186,731

 

 

$

 

(5,114

)

 

$

 

(128,414

)

 

$

 

53,203

 

Interest expense, net

 

 

 

 

 

27,285

 

 

 

27,285

 

Income tax expense

 

 

 

 

 

4,855

 

 

 

4,855

 

Depreciation and amortization

 

174,376

 

 

 

3,557

 

 

 

9,809

 

 

 

187,742

 

EBITDA

$

 

361,107

 

 

$

 

(1,557

)

 

$

 

(86,465

)

 

$

 

273,085

 

Plus Management Adjustments:

 

 

 

 

 

 

 

Acquisition, integration and expansion (1)

 

227

 

 

 

 

 

16,382

 

 

 

16,609

 

Offering-related expenses (2)

 

 

 

 

 

12,969

 

 

 

12,969

 

Non-cash stock compensation (3)

 

 

 

 

 

11,924

 

 

 

11,924

 

Others (4)

 

 

 

 

 

(11,138

)

 

 

(11,138

)

Adjusted EBITDA

$

 

361,334

 

 

$

 

(1,557

)

 

$

 

(56,328

)

 

$

 

303,449

 

 

 

 

 

 

 

 

 

 

 

Nine Months Ended September 30, 2018

 

 

Corporate and Other

Selling, general and administrative expenses

 

$

 

85,792

 

Less Management Adjustments:

 

 

Acquisition, integration and expansion(1)

 

 

448

 

Offering-related expenses (2)

 

 

12,969

 

Non-cash stock compensation (3)

 

 

11,924

 

Others (4)

 

 

3,754

 

Adjusted selling, general and administrative

 

$

 

56,697

 

(1)

 

Represents adjustment to the contingent value right liability based on the final agreed-upon settlement, which was recorded in other income (expense), net and a markdown to fair value of idle real estate pending for sale in Mathis, Texas acquired as part of the acquisition of the majority of the U.S. assets and assumed certain liabilities of Trican Well Service L.P., which was recorded in (gain) loss on disposal of assets. Also represents integration costs related to the asset acquisition from RSI, of which $0.2 million was recorded in cost of services and $0.3 million was recorded in selling, general and administrative expenses.

(2)

 

Represents primarily professional fees and other miscellaneous expenses to consummate the secondary common stock offering completed in January 2018. These expenses were recorded in selling, general and administrative expenses, as Keane did not receive any proceeds in the offering to offset the expenses.

(3)

 

Represents non-cash amortization of equity awards issued under the Equity Plan. According to the Equity Plan, the Compensation Committee of the Board of Directors can approve awards in the form of restricted stock, restricted stock units, and/or other deferred compensation. Consistent with prior policy, amortization of awards is made ratably over the vesting periods, beginning with the grant date, based on the total fair value determined on grant date and recorded in selling, general and administrative expenses.

(4)

 

Represents gain recognized for insurance proceeds received in connection with a fire that damaged a portion of one hydraulic fracturing fleet on July 1, 2018, which was recorded in (gain) loss on disposal of assets. Also represents legal contingencies and rating agency fees for establishing initial ratings in connection with entering into a new $350 million senior secured term facility, which were recorded in selling, general and administrative expenses.

NEXTIER OILFIELD SOLUTIONS INC. AND SUBSIDIARIES

(formerly Keane Group, Inc.)

NON-U.S. GAAP FINANCIAL MEASURES

(unaudited, in thousands)

 

 

 

 

 

 

 

Three Months Ended September 30, 2019

 

Completion Services

 

Other Services

 

Total

Revenue

$

 

437,343

 

 

$

 

6,610

 

 

$

 

443,953

 

Cost of services

 

328,029

 

 

 

5,409

 

 

 

333,438

 

Gross profit excluding depreciation
and amortization

 

109,314

 

 

 

1,201

 

 

 

110,515

 

Management adjustments associated with
cost of services

 

 

 

 

 

Adjusted Gross Profit

$

 

109,314

 

 

$

 

1,201

 

 

$

 

110,515

 

 

 

 

 

 

 

 

Three Months Ended June 30, 2019

 

Completion Services

 

Other Services

 

Total

Revenue

$

 

420,363

 

 

$

 

7,370

 

 

$

 

427,733

 

Cost of services

 

318,232

 

 

 

6,271

 

 

 

324,503

 

Gross profit excluding depreciation
and amortization

 

102,131

 

 

 

1,099

 

 

 

103,230

 

Management adjustments associated with
cost of services

 

 

 

 

 

Adjusted Gross Profit

$

 

102,131

 

 

$

 

1,099

 

 

$

 

103,230

 

 

 

 

 

 

 

 

Three Months Ended September 30, 2018

 

Completion Services

 

Other Services

 

Total

Revenue

$

 

548,418

 

 

$

 

10,490

 

 

$

 

558,908

 

Cost of services

 

425,928

 

 

 

10,871

 

 

 

436,799

 

Gross profit (loss) excluding
depreciation and amortization

 

122,490

 

 

 

(381

)

 

 

122,109

 

Management adjustments associated with
cost of services(1)

 

227

 

 

 

 

 

227

 

Adjusted Gross Profit (Loss)

$

 

122,717

 

 

$

 

(381

)

 

$

 

122,336

 

(1)

 

Represents integration costs related to the asset acquisition from RSI.

NEXTIER OILFIELD SOLUTIONS INC. AND SUBSIDIARIES

(formerly Keane Group, Inc.)

NON-U.S. GAAP FINANCIAL MEASURES

(unaudited, in thousands)

 

 

 

 

 

 

 

Nine Months Ended September 30, 2019

 

Completion Services

 

Other Services

 

Total

Revenue

$

 

1,269,681

 

 

$

 

23,659

 

 

$

 

1,293,340

 

Cost of services

 

972,932

 

 

 

22,655

 

 

 

995,587

 

Gross profit excluding depreciation
and amortization

 

296,749

 

 

 

1,004

 

 

 

297,753

 

Management adjustments associated with
cost of services

 

 

 

 

 

Adjusted Gross Profit

$

 

296,749

 

 

$

 

1,004

 

 

$

 

297,753

 

 

 

 

 

 

 

 

Nine Months Ended September 30, 2018

 

Completion Services

 

Other Services

 

Total

Revenue

$

 

1,625,798

 

 

$

 

24,659

 

 

$

 

1,650,457

 

Cost of services

 

1,261,676

 

 

 

26,216

 

 

 

1,287,892

 

Gross profit (loss) excluding
depreciation and amortization

 

364,122

 

 

 

(1,557

)

 

 

362,565

 

Management adjustments associated with
cost of services

 

227

 

 

 

 

 

227

 

Adjusted Gross Profit (Loss)

$

 

364,349

 

 

$

 

(1,557

)

 

$

 

362,792

 

 

Diesen Artikel teilen
Mehr zum Thema
Klicken Sie auf eines der Themen und seien Sie stets dazu informiert. Mehr Informationen hier.
CapitalCapFIUBSRSI


0 Kommentare

Schreibe Deinen Kommentar

Bitte melden Sie sich an, um zu kommentieren. Anmelden | Registrieren

 

Disclaimer

Aus der Community
LUS Wikifolio-Index BITCOIN, ETHEREUM & GOLD Index Zertifikat Open-End (LASW)
Chart: arniarni
LUS Wikifolio-Index Performance von Kryptowährungen Index Zertifikat Open-End (LASW)
Chart: arniarni

Meistgelesene Nachrichten des Autors

Titel
Titel
Titel
Titel