Nine Energy faces NYSE delisting over low stock price

HOUSTON - Nine Energy Service, Inc. (NYSE: NINE), an oilfield services company, has been notified by the New York Stock Exchange (NYSE) that it is not in compliance with the exchange’s continued listing standards due to the average closing price of its common stock falling below $1.00 per share over a consecutive 30-day trading period. The stock, currently trading at $0.89, has experienced significant pressure, declining nearly 60% over the past year according to InvestingPro data.

The notification, dated April 30, 2025, triggers a six-month period during which Nine Energy can regain compliance. To do so, the company’s common stock must reach a closing price of at least $1.00 per share and maintain an average closing price of at least $1.00 over the 30 trading-day period ending on the last trading day of any calendar month within this timeframe. InvestingPro analysis reveals the company operates with a significant debt burden, with a concerning debt-to-capital ratio of 0.91.

Nine Energy’s Board of Directors is actively considering options to address the share price deficiency, including a potential reverse stock split, which would require stockholder approval. This measure must be approved at the company’s next annual meeting of stockholders if it is deemed necessary to remedy the non-compliance.

During this cure period, Nine Energy’s common stock will continue to be listed on the NYSE, trading under the symbol "NINE" with an additional ".BC" designation to indicate its non-compliance status. If the company fails to regain compliance, the NYSE may proceed with the suspension and delisting of Nine Energy’s common stock.

The NYSE’s notification has no immediate impact on Nine Energy’s business operations or its reporting requirements with the Securities and Exchange Commission, nor does it lead to a default under any of the company’s material debt agreements.

Based in Houston, Texas, Nine Energy Service provides completion solutions to the oil and gas industry across North America and internationally, focusing on service quality, wellsite execution, and advanced technology. The company currently maintains a market capitalization of $37.5 million, with annual revenues of $554.1 million. For deeper insights into Nine Energy’s financial health and future prospects, including exclusive analysis and 8 additional ProTips, visit InvestingPro to access the comprehensive Pro Research Report.

This news is based on a press release statement from Nine Energy Service, Inc.

In other recent news, Nine Energy Service reported its fourth-quarter earnings for 2024, showcasing a mixed financial performance. Revenue for the quarter exceeded expectations, reaching $141.4 million, which was a positive deviation of approximately 5% from forecasts. However, earnings per share (EPS) fell slightly short, coming in at -$0.22 versus the anticipated -$0.20. The company recorded a net loss of $41.1 million for the year, translating to -$1.11 per share. Despite the EPS miss, the company’s stock surged over 13% in after-hours trading, indicating investor optimism about its revenue growth.

In other developments, Moody’s Ratings downgraded Nine Energy Service’s Corporate Family Rating from Caa1 to Caa2, with a negative outlook. The downgrade reflects the company’s weakened liquidity amid a challenging industry environment and high debt levels. The company’s senior secured notes were also downgraded to Caa3. Moody’s highlighted the risk of further slowdown in onshore rig activity in the U.S., which could strain Nine’s liquidity further. Despite these challenges, Nine Energy Service benefits from diversification across multiple business lines and exposure to various U.S. basins.

The company has projected its Q1 2025 revenue to be between $146 million and $152 million, with expectations for increased revenue and adjusted EBITDA. Analysts from Moody’s noted that factors such as a stronger-than-expected increase in revenues and profitability could lead to an upgrade in the company’s ratings.

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