NexTier Announces Second Quarter 2020 Financial and Operational Results
HOUSTON, Aug. 3, 2020 /PRNewswire/ -- NexTier Oilfield Solutions Inc. (NYSE: NEX) ("NexTier" or the "Company") today reported second quarter 2020 financial and operational results.
Second Quarter 2020 Results and Recent Highlights
-- Reported revenue of $196.2 million in the second quarter of 2020,
compared to $627.6 million in the first quarter of 2020
-- Reported net loss of $112.5 million in the second quarter of 2020,
compared to net loss of $71.8 million in the first quarter of 2020
-- Reported SG&A of $38.0 million in the second quarter of 2020, compared
to $56.9 million in the first quarter of 2020. Reported adjusted
SG&A((1)) of $31.0 million in the second quarter of 2020, reflecting a
decrease of 35% compared to $47.9 million in the first quarter of 2020
-- Adjusted EBITDA((1)) of $1.7 million in the second quarter of 2020,
compared to $72.0 million in the first quarter of 2020
-- Averaged 11 fully-utilized fracturing fleets in the second quarter of
2020 compared to 27 average fully-utilized fracturing fleets in the
first quarter of 2020; deployed a second completion fleet
internationally
-- Reported revenue of $169.5 million in the second quarter of 2020 when
considering only fracturing and bundled wireline, compared to $460.4
million in the first quarter of 2020
-- Generated annualized adjusted gross profit per fully-utilized fracturing
fleet((1) )of $11.4 million in the second quarter of 2020, compared to
$13.4 million in the first quarter of 2020
-- Advanced digital initiative program, including the successful deployment
of NexHub on all deployed U.S. fleets
-- Exited the second quarter of 2020 with total liquidity of $430.5
million, including cash of $337.1 million and no term loan maturities
through 2025
Management Commentary
"NexTier's second quarter performance in an extremely challenging market demonstrates we can consistently deliver on our commitments through solid execution," said Robert Drummond, President and Chief Executive Officer of NexTier. "During the quarter, U.S. producers abruptly halted much of their activity and production in response to economic shutdowns resulting from COVID-19. Our quick and decisive actions around cost control, continued focus on service quality, and the enhanced strength of our overall platform through the deployment of NexHub, our integrated digital technologies including remote monitoring capabilities, are evident in our financial performance. As we continue to navigate the current market environment, our proactive actions to improve service delivery, increase efficiency and reduce costs further differentiate NexTier and enhance its ability to compete in any environment."
"We delivered adjusted EBITDA decrementals that were meaningfully ahead of our guidance, completion fleet market share at the high-end of our forecast, and increased our cash balance by $23 million," said Kenny Pucheu, Executive Vice President and Chief Financial Officer. "As the market rapidly changed, we reacted quickly to restructure our organization to be even more lean and nimble, enhancing NexTier's ability to generate free cash flow and leading returns as the market eventually recovers. Our results and financial health demonstrate that NexTier is a business partner our customers can rely on over the long haul."
"While future activity remains highly uncertain, we are managing what is within our control, while maintaining an intense focus on NexTier's market readiness," continued Mr. Drummond. "Our ability to respond quickly and efficiently in a recovery is led by the capabilities of our world-class team, flexibility of our balance sheet, readiness of our asset base, and the further evolution of our innovation program. With the hard work and commitment of our entire team, we are further evolving NexTier's position as a leading completions platform."
Second Quarter 2020 Financial Results
Revenue totaled $196.2 million in the second quarter of 2020, compared to $627.6 million in the first quarter of 2020.
Net loss totaled $112.5 million, or $0.53 per diluted share, in the second quarter of 2020, compared to $71.8 million, or $0.34 per diluted share in the first quarter of 2020. Adjusted net loss((1)) totaled $79.4 million, or $0.37 per diluted share, in the second quarter of 2020, compared to Adjusted net loss of $20.1 million, or $0.09 per diluted share, in the first quarter of 2020.
Selling, general and administrative expense ("SG&A") totaled $38.0 million in the second quarter of 2020, compared to SG&A of $56.9 million in the first quarter of 2020. Adjusted SG&A((1)) totaled $31.0 million in the second quarter of 2020, compared to Adjusted SG&A of $47.9 million in the first quarter of 2020.
Adjusted EBITDA totaled $1.7 million in the second quarter of 2020, compared to Adjusted EBITDA of $72.0 million in the first quarter of 2020.
Second Quarter 2020 Management Adjustments
Adjusted EBITDA in the second quarter of 2020 includes management adjustments of approximately $33.1 million consisting primarily of $18.9 million in market-driven severance 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, $5.1 million of non-cash stock compensation expense, $14.0 million of merger and integration costs, partially offset by gains of $5.0 million, which includes a net gain associated with the make-whole provision on the Basic notes received as part of the Well Support Services divestiture completed in March 2020.
Completion Services
Revenue in our Completion Services segment totaled $179.0 million in the second quarter of 2020, compared to $512.9 million in the first quarter of 2020. A sharp decrease in utilization, combined with price reductions in all basins, led to a significant decline in revenue in all service lines due to the global oil supply and demand imbalance and the impact of the COVID-19 pandemic. Adjusted Gross Profit totaled $31.7 million in the second quarter of 2020, compared to $97.9 million in the first quarter of 2020. Net loss totaled $46.9 million in the second quarter of 2020, compared to net loss of $13.1 million in the first quarter of 2020.
The Company had an average of 11 fully-utilized fracturing fleets in the second quarter of 2020. When taking only fracturing and bundled wireline into account, annualized Adjusted Gross Profit per fully-utilized fracturing fleet totaled $11.4 million in the second quarter of 2020, compared to $13.4 million in the first quarter of 2020.
Well Construction and Intervention Services
Revenue in our Well Construction and Intervention ("WC&I") Services segment, totaled $17.3 million in the second quarter of 2020, compared to $56.8 million in the first quarter of 2020. Revenue decreased 70% as a result of a sharp declines in activity in both our Coil Tubing and Cementing services lines, combined with pricing reductions in all basins, resulting from unprecedented declines in market activity. Adjusted Gross Profit totaled $0.8 million in the second quarter of 2020, compared to $8.8 million in the first quarter of 2020. Net loss totaled $6.2 million in the second quarter of 2020, compared to net income of $3.0 million in the first quarter of 2020.
Well Support Services
The Company completed the divestiture of its Well Support Services segment on March 9, 2020. As a result, there was no contribution from this business during the second quarter of 2020, and results for the first quarter of 2020 for this segment reflect operations from January 1, 2020 through the date of sale. Subsequent to this divestiture, the Company's reportable segments are (i) Completion Services and (ii) Well Construction and Intervention Services.
Balance Sheet and Capital
Total debt outstanding as of June 30, 2020 totaled $336.7 million, net of debt discounts and deferred finance costs and excluding lease obligations. As of June 30, 2020, total available liquidity was $430.5 million, comprised of cash and equivalents of $337.1 million, and $93.4 million of available borrowing capacity under our asset-based credit facility.
Total operating cash flow was $61.9 million and cash flow used in investing activities was $36.4 million, resulting in free cash flow of $25.5 million in the second quarter of 2020. Excluding cash used for merger and integration related costs of $13.0 million, and for market related severance and restructuring cash costs of $14.6 million, combined Adjusted free cash flow((1)) totaled $53.0 million in the second quarter of 2020.
NexTier continues to expect its 2020 total capital expenditures to be between $100 million and $120 million, subject to market conditions. Capital expenditures in 2020 will be driven by strategic innovation investments and maintenance capital expenditures. Capital expenditures during the first half of 2020 were primarily driven by the delivery of certain strategic innovation investments, with second half of 2020 spending expected to be mainly driven by maintenance.
Integration Update
On October 31, 2019, Keane and C&J completed their business combination and concurrent with closing, Keane, as the parent company, was renamed NexTier. Keane was determined to be the accounting acquirer in the merger, and as a result, the historical financial statements of Keane, prepared under U.S. generally accepted accounting principles ("GAAP"), for the periods prior to the merger are considered to be the historical financial statements of NexTier.
The Company has now fully completed its integration program related to the merger between Keane and C&J. The Company's targeted run-rate cost synergies of $125 million were achieved in April 2020, and ERP system integration was completed in the second quarter of 2020.
"I commend our team for completing a world-class integration process, including the achievement of increased target cost synergies more than 6 months ahead of original schedule, all while upholding our commitment to customers," said Mr. Drummond.
Coronavirus Monitoring and Planning
The Company is monitoring the spread and impact of the coronavirus closely, and is implementing measures in accordance with local directives, as well as internal policies, to protect employees and limit business interruption. These measures include restriction on travel and employee contact in certain regions, employee education, enhanced customer and supplier communication, alternative sourcing, and other measures. 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 4, 2020, NexTier will hold a conference call for investors at 7:00 a.m. Central Time (8:00 a.m. Eastern Time) to discuss second quarter 2020 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 10146668. The replay will be available until August 11, 2020. 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, annualized adjusted
gross profit per fully-utilized fracturing
fleet, and adjusted EBITDA decremental. 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,
Adjusted Net Income(loss) and adjusted EBITDA
decremental 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
bundled 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 bundled
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
bundled wireline product line, (ii) divided
by the fully-utilized fracturing and bundled
wireline fleets (average deployed fleets
multiplied by fleet utilization) per quarter,
and then (iii) multiplied by four. Adjusted
EBITDA decremental is calculated by dividing
(i) the difference between first quarter
Adjusted EBITDA and second quarter Adjusted
EBITDA; by (ii) the difference between first
quarter Revenue and second quarter Revenue.
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 amount and timing of synergies from C&J merger and the Company's 2020 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. 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 effectiveness of the integration of C&J's businesses into the Company and the ability to continue to achieve the anticipated synergies and value-creation contemplated in connection with the merger. 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, 2019, and in our subsequently filed Quarterly Report on Form 10-Q, both 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
Managing Director (ICR)
marc.silverberg@icrinc.com
NEXTIER OILFIELD SOLUTIONS INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS & COMPREHENSIVE INCOME (LOSS)
(unaudited, amounts in thousands, except per share data)
Three Months Ended Three Months Ended
June 30, 2020 March 31, 2020
Revenue $
196,227 $
627,625
Operating costs and expenses:
Cost of services 178,771 512,226
Depreciation and amortization 75,260 85,821
Selling, general and administrative expenses 38,024 56,884
Merger and integration 14,028 12,182
Gain on disposal of assets (953) (7,962)
Impairment expense - 34,327
Total operating costs and expenses 305,130 693,478
Operating income (108,903) (65,853)
Other income (expenses):
Other income (expense), net 2,259 416
Interest expense (5,353) (6,066)
Total other income (expense) (3,094) (5,650)
Loss before income taxes (111,997) (71,503)
Income tax benefit (expense) (491) (253)
Net loss (112,488) (71,756)
Other comprehensive income (loss):
Foreign currency translation adjustments (354) 1,107
Hedging activities (2,654) (2,620)
Total comprehensive loss $
(115,496) $
(73,269)
Net loss per share: basic $
(0.53) $
(0.34)
Net loss per share: diluted $
(0.53) $
(0.34)
Weighted-average shares: basic 213,760 212,842
Weighted-average shares: diluted 213,760 212,842
NEXTIER OILFIELD SOLUTIONS INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS (amounts in thousands)
June 30, December 31,
2020 2019
ASSETS (Unaudited)
Current assets:
Cash and cash equivalents $
337,147 $
255,015
Trade and other accounts receivable, net 86,570 350,765
Inventories, net 43,153 61,641
Assets held for sale 141
Prepaid and other current assets 51,342 20,492
Total current assets 518,212 688,054
Operating lease right-of-use assets 47,098 54,503
Finance lease right-of-use assets 2,743 9,511
Property and equipment, net 575,094 709,404
Goodwill 104,198 137,458
Intangible assets 54,881 55,021
Other noncurrent assets 7,360 10,956
Total assets $
1,309,586 $
1,664,907
LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities:
Accounts payable $
37,765 $
115,251
Accrued expenses 144,747 234,895
Customer contract liabilities 60
Current maturities of operating lease liabilities 19,673 23,473
Current maturities of finance lease liabilities 1,363 4,594
Current maturities of long-term debt 2,303 2,311
Other current liabilities 2,816 5,610
Total current liabilities 208,667 386,194
Long-term operating lease liabilities, less current maturities 32,986 35,123
Long-term finance lease liabilities, less current maturities 1,479 4,844
Long-term debt, net of unamortized deferred financing costs and unamortized 334,375 335,312
debt discount, less current maturities
Other non-current liabilities 20,490 16,662
Total non-current liabilities 389,330 391,941
Total liabilities 597,997 778,135
Shareholders' equity:
Common stock 2,141 2,124
Paid-in capital in excess of par value 981,204 966,762
Retained deficit (259,102) (73,333)
Accumulated other comprehensive loss (12,654) (8,781)
Total shareholders' equity 711,589 886,772
Total liabilities and shareholders' equity $
1,309,586 $
1,664,907
NEXTIER OILFIELD SOLUTIONS INC. AND SUBSIDIARIES
ADDITIONAL SELECTED FINANCIAL AND OPERATING DATA (unaudited, amounts in thousands)
Three Months Ended
June 30, 2020 March 31, 2020
Completion Services:
Revenue $
178,977 $
512,871
Cost of services 159,149 417,382
Depreciation, amortization, (gain) loss on sale of assets, and impairment 66,746 108,591
Net loss (46,918) (13,102)
Adjusted gross profit(1) $
31,655 $
97,876
Well Construction and Intervention Services:
Revenue $
17,250 $
56,825
Cost of services 19,622 49,253
Depreciation, amortization, (gain) loss on sale of assets, and impairment 3,858 4,561
Net income (loss) (6,230) 3,011
Adjusted gross profit(1) $
812 $
8,784
Well Support Services:
Revenue
$ $
57,929
Cost of services - 45,591
Depreciation, amortization, (gain) loss on sale of assets, and impairment - 1,398
Net income - 10,940
Adjusted gross profit(1)
$ $
12,338
(1) The Company uses adjusted gross profit as its measure of profitability for segment reporting.
NEXTIER OILFIELD SOLUTIONS INC. AND SUBSIDIARIES
ADDITIONAL SELECTED FINANCIAL AND OPERATING DATA (unaudited, amounts in thousands)
Three Months Ended
June 30, 2020 March 31, 2020
Net loss $
(112,488) $
(71,756)
Interest expense, net 5,353 6,066
Income tax benefit 491 253
Depreciation and amortization 75,260 85,821
EBITDA $
(31,384) $
20,384
Plus Management Adjustments:
Acquisition, integration and expansion(1) 14,028 12,759
Non-cash stock compensation(2) 5,141 5,451
Impairment of assets 34,327
Market-driven costs(3) 18,925 8,611
Divestiture of business(4) (3,775) (8,045)
Other (1,253) (1,460)
Adjusted EBITDA $
1,682 $
72,027
(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 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 net gain on the sale
of Well Support Services segment
and increase fair value of the
Basic notes and make-whole
derivative received as part of
the sale.
Three Months Ended Variance
June 30, 2020 March 31, 2020
Adjusted EBITDA $
1,682 $
72,027 $
(70,345)
Revenue $
196,227 $
627,625 $
(431,398)
Adjusted EBITDA decremental(1) 16
%
(1) Adjusted EBITDA decremental is
calculated by dividing (i) the
difference between first
quarter Adjusted EBITDA and
second quarter Adjusted EBITDA;
by (ii) the difference between
first quarter Revenue and
second quarter Revenue.
NEXTIER OILFIELD SOLUTIONS INC. AND SUBSIDIARIES
ADDITIONAL SELECTED FINANCIAL AND OPERATING DATA (unaudited, amounts in thousands)
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 $
30,950
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 $
47,882
NEXTIER OILFIELD SOLUTIONS INC. AND SUBSIDIARIES NON-GAAP FINANCIAL MEASURES
(amounts in thousands)
Three Months Ended June 30, 2020
Completion WC&I Well Support Total
Services Services
Revenue $
178,977 $
17,250
$ $
196,227
Cost of services 159,149 19,622 178,771
Gross profit excluding depreciation and amortization 19,828 (2,372) 17,456
Management adjustments associated with cost of services 11,827 3,184 15,011
Adjusted gross profit $
31,655 $
812
$ $
32,467
Three Months Ended March 31, 2020
Completion WC&I Well Support Total
Services Services
Revenue $
512,871 $
56,825 $
57,929 $
627,625
Cost of services 417,382 49,253 45,591 512,226
Gross profit excluding depreciation and amortization 95,489 7,572 12,338 115,399
Management adjustments associated with cost of services 2,387 1,212 3,599
Adjusted gross profit $
97,876 $
8,784 $
12,338 $
118,998
Three Months Ended
June 30, 2020
Frac & Bundled Wireline
Revenue $
169,470
Cost of services 148,326
Gross profit excluding depreciation and amortization 21,144
Management adjustments associated with cost of services 10,260
Adjusted gross profit $
31,404
Average hydraulic fracturing fleets deployed 13
Fully-utilized hydraulic fracturing fleets 11
Annualized adjusted gross profit per fully-utilized fleet $
11,420
Three Months Ended
March 31, 2020
Frac & Bundled Wireline
Revenue $
460,372
Cost of services 371,817
Gross profit excluding depreciation and amortization 88,555
Management adjustments associated with cost of services 2,115
Adjusted gross profit $
90,670
Average hydraulic fracturing fleets deployed 29
Fully-utilized hydraulic fracturing fleets 27
Annualized adjusted gross profit per fully-utilized fleet $
13,433
NEXTIER OILFIELD SOLUTIONS INC. AND SUBSIDIARIES
NON-GAAP FINANCIAL MEASURES (unaudited, amounts in thousands)
Three Months
Ended
June 30, 2020
Net cash provided by operating activities $
61,927
Cash flows used in investing activities (1) 36,436
Free cash flow generation 25,491
Acquisition, integration and expansion 12,968
Market-driven costs 14,559
Adjusted combined free cash flow generation $
53,018
Three Months
Ended
March 31, 2020
Net cash provided by operating activities $
48,487
Cash flows used in investing activities (1) 39,142
Free cash flow generation 9,345
Acquisition, integration and expansion 14,665
Market-driven costs 137
Adjusted combined free cash flow generation $
24,147
(1) Excludes the $53.3 million of proceeds from the WSS Sale.
Three Months
Ended
June 30, 2020
Net loss (112,488)
Plus Management Adjustments:
Acquisition, integration and expansion 14,028
Non-cash stock compensation 5,141
Market-driven costs 18,925
Divestiture of business (3,775)
Other (1,253)
Adjusted net loss $
(79,422)
Adjusted net loss per share, basic and diluted $
(0.37)
Weighted-average shares, basic and diluted 213,760
NEXTIER OILFIELD SOLUTIONS INC. AND SUBSIDIARIES
NON-GAAP FINANCIAL MEASURES (unaudited, amounts in thousands)
Three Months
Ended
March 31, 2020
Net loss (71,756)
Plus Management Adjustments:
Acquisition, integration and expansion 12,759
Non-cash stock compensation 5,451
Impairment of assets 34,327
Market-driven costs 8,611
Divestiture of business (8,045)
Other (1,460)
Adjusted net loss $
(20,113)
Adjusted net loss per share, basic and diluted $
(0.09)
Weighted-average shares, basic and diluted 212,842
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SOURCE NexTier Oilfield Solutions
