NexTier Announces Third Quarter 2020 Financial and Operational Results

HOUSTON, Nov. 3, 2020 /PRNewswire/ -- NexTier Oilfield Solutions Inc. (NYSE: NEX) ("NexTier" or the "Company") today reported third quarter 2020 financial and operational results. 

Third Quarter 2020 Results and Recent Highlights

  • Generated total revenue of $163.7 million in Q3 2020, compared to $196.2 million in Q2 2020
  • Reported fracturing and bundled wireline revenue of $141.3 million in Q3 2020, compared to $169.5 million in Q2 2020
  • Reported net loss of $102.4 million in Q3 2020, compared to net loss of $112.5 million in Q2 2020
  • Reported SG&A of $25.5 million in Q3 2020, reflecting a decrease of 33% versus Q2 2020
  • Reported Adjusted SG&A(1) of $19.8 million in Q3 2020, reflecting a decrease of 36% versus Q2 2020
  • Reported Adjusted EBITDA(1) of $(2.4) million in Q3 2020, compared to $1.7 million in Q2 2020
  • Averaged 11 fully-utilized fleets in Q3 2020 and exited with 13 fully-utilized and 14 deployed fleets
  • Further reducing marketed hydraulic fracturing fleet by 0.4 million diesel-powered horsepower
  • Total liquidity of $370.8 million exiting Q3 2020, including $305.2 million of cash; no term loan maturities through 2025

Management Commentary

"Despite COVID-19 market challenges and a fiercely competitive landscape, NexTier deployed 5 additional fleets during the third quarter," said Robert Drummond, President and Chief Executive Officer of NexTier. "We benefited from our market readiness strategy and effectively re-deployed fleets with minimal start-up costs. The strong momentum gained with customers during the third quarter is carrying over into the fourth quarter, where we have 15 fully-utilized fleets working today, nearly doubling our fully-utilized fleet count exiting the second quarter."

"NexTier delivered third quarter Adjusted EBITDA decrementals ahead of our outlook due to strong operational performance and continued reduction of costs," said Kenny Pucheu, Executive Vice President and Chief Financial Officer of NexTier. "Despite the depths of the downturn, we did not cut to the trough, nor did we size NexTier to operate at current deployed fleet counts. Instead, we are positioning the company to participate and lead in the eventual market recovery, anchored by our fortified balance sheet, including liquidity in excess of $370 million."

"NexTier is executing its strategy to harvest pent-up earnings power as the market continues to recover," said Mr. Drummond. "We continue to reduce our carbon footprint by strategically growing the clean, natural gas-powered portion of our fleet via existing fleet conversions, while proactively taking actions that responsibly utilize our assets and capital. Further, our digital capabilities enable our strategy to increase work scope at the frac well site and improve the overall value proposition for our customers, including reducing costs associated with logistics services. Currently, the growth rate of NexTier's new cutting edge logistics support capabilities is outpacing the growth seen in the rest of NexTier's business."

Quarter 2020 Financial Results

Revenue totaled $163.7 million in the third quarter of 2020, compared to $196.2 million in the second quarter of 2020. The sequential decrease was primarily driven by reduced calendar utilization and lower pricing in Completion Services and Well Construction and Intervention services segments, combined with the impact of a relatively strong April 2020, partially offset by efficiency gains. 

Net loss totaled $102.4 million, or $0.48 per diluted share, in the third quarter of 2020, compared to $112.5 million, or $0.53 per diluted share in the second quarter of 2020. Adjusted net loss(1) totaled $82.0 million, or $0.38 per diluted share, in the third quarter of 2020, compared to Adjusted net loss of $79.4 million, or $0.37 per diluted share, in the second quarter of 2020.

Selling, general and administrative expense ("SG&A") totaled $25.5 million in the third quarter of 2020, compared to SG&A of $38.0 million in the second quarter of 2020. Adjusted SG&A(1) totaled $19.8 million in the third quarter of 2020, compared to Adjusted SG&A of $31.0 million in the second quarter of 2020.

Adjusted EBITDA totaled $(2.4) million in the third quarter of 2020, compared to Adjusted EBITDA of $1.7 million in the second quarter of 2020.

Third Quarter 2020 Management Adjustments

Adjusted EBITDA for the third quarter includes management adjustments of approximately $20.4 million, consisting primarily of $7.3 million of merger and integration costs, $4.7 million of non-cash stock compensation expense, $3.8 million for an accounting loss associated with a make-whole provision on the Basic notes received as part of the Well Support Services divestiture in March, $2.7 million of an inventory impairment, and $1.4 million of market-driven severance and restructuring costs. The Company does not anticipate material future merger and integration costs going forward. 

Completion Services

Revenue in our Completion Services segment totaled $154.0 million in the third quarter of 2020, compared to $179.0 million in the second quarter of 2020. Activity steadily increased throughout the third quarter of 2020, which was partially offset by challenging pricing and calendar utilization. Adjusted Gross Profit totaled $15.1 million in the third quarter of 2020, compared to $31.7 million in the second quarter of 2020. Net loss totaled $50.9 million in the third quarter of 2020, compared to net loss of $46.9 million in the second quarter of 2020.

The Company had an average of 11 fully-utilized fracturing fleets in the third quarter of 2020, and exited the third quarter of 2020 with 13 fully-utilized and 14 deployed fleets. When taking only fracturing and bundled wireline into account, annualized Adjusted Gross Profit per fully-utilized fracturing fleet totaled $5.5 million in the third quarter of 2020, compared to $11.4 million in the second quarter of 2020.

Well Construction and Intervention Services

Revenue in our Well Construction and Intervention ("WC&I") Services segment, totaled $9.7 million in the third quarter of 2020, compared to $17.3 million in the second quarter of 2020. The sequential decrease in revenue was primarily driven by a further reduction in the Company's footprint of its cementing and coil tubing services lines. Adjusted Gross Loss totaled $0.8 million in the third quarter of 2020, compared to Adjusted Gross Profit of $0.8 million in the second quarter of 2020. Net loss totaled $4.0 million in the third quarter of 2020, compared to net loss of $6.2 million in the second quarter of 2020.

Balance Sheet and Capital

Total debt outstanding as of September 30, 2020 totaled $336.1 million, net of debt discounts and deferred finance costs and excluding lease obligations. As of September 30, 2020, total available liquidity was $370.8 million, comprised of cash of $305.2 million, and $65.6 million of available borrowing capacity under our asset-based credit facility.

Total cash used in operations was $27.7 million and cash used in investing activities was $3.4 million, resulting in a cash use of $31.1 million in the third quarter of 2020. Excluding cash used for merger and integration related costs of $7.4 million, and for market related severance and restructuring cash costs of $1.2 million, combined Adjusted free cash flow(1) totaled $22.6 million in the third quarter of 2020.

NexTier expects its 2020 total capital expenditures to be between $120 million and $130 million, compared to a previous guidance range of between $100 and $120 million. The revision is driven by investments in converting Tier 4 equipment currently in the fleet to produce additional dual fuel capabilities, with expected delivery in the fourth quarter of 2020.

Strategic Updates

NexTier has announced that it will further reduce its marketed hydraulic fracturing fleet by approximately 0.4 million horsepower, resulting in a total hydraulic fracturing fleet of approximately 1.8 million horsepower. NexTier will utilize the major components from the retired equipment over time to support its maintenance inventory. Combined with the horsepower retirements announced in November 2019, NexTier will have removed approximately 0.65 million Tier-2 diesel-powered horsepower from the market since the merger of Keane and C&J.   

NexTier has also announced that in 2021, it will launch NexTier Power Solutions, the Company's natural gas treatment and delivery business that will power NexTier's fleet with field gas or CNG. The launch supplements the Company's ongoing initiatives in growing its natural gas powered horsepower and other ESG technologies, and positions NexTier as the fully integrated natural gas provider of the oilfield.           

"We are experiencing growing customer interest in our carbon emissions reducing solutions as operators recognize our leadership position in providing ESG friendly technologies and the value achievable through aligning with NexTier as a preferred service provider," stated Mr. Drummond.

Outlook

For the fourth quarter of 2020, NexTier currently expects a sequential increase in revenue of between 10% and 15% and positive Adjusted EBITDA.  The Company's outlook for the fourth quarter of 2020 is based on current visibility and assuming no improvement in pricing.

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 November 4, 2020, 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 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 10148197. The replay will be available until November 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 second quarter Adjusted EBITDA and third quarter Adjusted EBITDA; by (ii) the difference between second quarter Revenue and third 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
September 30, 2020


Three Months Ended
June 30, 2020





Revenue

$

163,675



$

196,227


Operating costs and expenses:




Cost of services

150,066



178,771


Depreciation and amortization

73,570



75,260


Selling, general and administrative expenses

25,521



38,024


Merger and integration

7,288



14,028


Gain on disposal of assets

(3,027)



(953)


Impairment expense

2,681




Total operating costs and expenses

256,099



305,130


Operating loss

(92,424)



(108,903)


Other income (expense):




Other income (expense), net

(3,978)



2,259


Interest expense, net

(5,524)



(5,353)


Total other expense

(9,502)



(3,094)


Loss before income taxes

(101,926)



(111,997)


Income tax expense

(507)



(491)


Net loss

(102,433)



(112,488)


Other comprehensive loss:




Foreign currency translation adjustments

(157)



(354)


Hedging activities

(453)



(2,654)


Total comprehensive loss

$

(103,043)



$

(115,496)






Net loss per share: basic

$

(0.48)



$

(0.53)


Net loss per share: diluted

$

(0.48)



$

(0.53)






Weighted-average shares: basic

214,251



213,760


Weighted-average shares: diluted

214,251



213,760


 

NEXTIER OILFIELD SOLUTIONS INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED BALANCE SHEETS

(amounts in thousands)




September 30,


December 31,



2020


2019

ASSETS


(Unaudited)



Current assets:





Cash and cash equivalents


$

305,212



$

255,015


Trade and other accounts receivable, net


96,740



350,765


Inventories, net


30,199



61,641


Assets held for sale




141


Prepaid and other current assets


56,164



20,492


Total current assets


488,315



688,054


Operating lease right-of-use assets


42,165



54,503


Finance lease right-of-use assets


2,396



9,511


Property and equipment, net


514,264



709,404


Goodwill


104,198



137,458


Intangible assets


52,945



55,021


Other noncurrent assets


6,895



10,956


Total assets


$

1,211,178



$

1,664,907


LIABILITIES AND STOCKHOLDERS' EQUITY





Current liabilities:





Accounts payable


$

52,598



$

115,251


Accrued expenses


130,585



234,895


Customer contract liabilities


745



60


Current maturities of operating lease liabilities


19,555



23,473


Current maturities of finance lease liabilities


1,549



4,594


Current maturities of long-term debt


2,263



2,311


Other current liabilities


2,672



5,610


Total current liabilities


209,967



386,194


Long-term operating lease liabilities, less current maturities


28,999



35,123


Long-term finance lease liabilities, less current maturities


1,167



4,844


Long-term debt, net of unamortized deferred financing costs and unamortized debt discount, less current maturities


333,844



335,312


Other non-current liabilities


23,283



16,662


Total non-current liabilities


387,293



391,941


Total liabilities


597,260



778,135


Stockholders' equity:





Common stock


2,144



2,124


Paid-in capital in excess of par value


985,900



966,762


Retained deficit


(361,535)



(73,333)


Accumulated other comprehensive loss


(12,591)



(8,781)


Total stockholders' equity


613,918



886,772


Total liabilities and stockholders' equity


$

1,211,178



$

1,664,907


 

NEXTIER OILFIELD SOLUTIONS INC. AND SUBSIDIARIES

ADDITIONAL SELECTED FINANCIAL AND OPERATING DATA

(unaudited, amounts in thousands)



Three Months Ended


September 30, 2020


June 30, 2020

Completion Services:




Revenue

$

154,016



$

178,977


Cost of services

139,477



159,149


Depreciation, amortization, (gain) loss on sale of assets, and impairment

65,468



66,746


Net loss

(50,929)



(46,918)


Adjusted gross profit(1)

$

15,145



$

31,655






Well Construction and Intervention Services:




Revenue

$

9,659



$

17,250


Cost of services

10,589



19,622


Depreciation, amortization, (gain) loss on sale of assets, and impairment

3,093



3,858


Net loss

(4,023)



(6,230)


Adjusted gross profit (loss)(1)

$

(785)



$

812




(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


September 30, 2020


June 30, 2020

Net loss

$

(102,433)



$

(112,488)


Interest expense, net

5,524



5,353


Income tax expense

507



491


Depreciation and amortization

73,570



75,260


EBITDA

$

(22,832)



$

(31,384)


Plus management adjustments:




Acquisition, integration and expansion(1)

7,288



14,028


Non-cash stock compensation(2)

4,748



5,141


Impairment of assets (5)

2,681




Market-driven costs(3)

1,422



18,925


Divestiture of business(4)

3,848



(3,775)


Other

430



(1,253)


Adjusted EBITDA

$

(2,415)



$

1,682




(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 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)/loss on the sale of Well Support Services segment and (increase)/decrease in fair value of the Basic notes and make-whole derivative received as part of the sale.

(5) 

Represents write-down in inventory carrying value down to its net realizable value.

 



Three Months Ended


Variance



September 30, 2020


June 30, 2020












Adjusted EBITDA


$

(2,415)



$

1,682



$

(4,097)


Revenue


$

163,675



$

196,227



$

(32,552)









Adjusted EBITDA decremental(1)






13

%



(1) 

Adjusted EBITDA decremental is calculated by dividing (i) the difference between second quarter Adjusted EBITDA and third quarter Adjusted EBITDA; by (ii) the difference between second quarter Revenue and third quarter Revenue.

 

NEXTIER OILFIELD SOLUTIONS INC. AND SUBSIDIARIES

ADDITIONAL SELECTED FINANCIAL AND OPERATING DATA

(unaudited, amounts in thousands)




Three Months Ended
September 30, 2020

Selling, general and administrative expenses


$

25,521


Less management adjustments:



Non-cash stock compensation


(4,748)


Market-driven costs


(671)


Other


(301)


Adjusted selling, general and administrative


$

19,801






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


 

NEXTIER OILFIELD SOLUTIONS INC. AND SUBSIDIARIES

NON-GAAP FINANCIAL MEASURES

(amounts in thousands)



Three Months Ended September 30, 2020


Completion
Services


WC&I


Total

Revenue

$

154,016



$

9,659



$

163,675


Cost of services

139,477



10,589



150,066


Gross profit (loss) excluding depreciation and amortization

14,539



(930)



13,609


Management adjustments associated with cost of services

606



145



751


Adjusted gross profit (loss)

$

15,145



$

(785)



$

14,360





Three Months Ended June 30, 2020


Completion
Services


WC&I


Total

Revenue

$

178,977



$

17,250



$

196,227


Cost of services

159,149



19,622



$

178,771


Gross profit (loss) 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



September 30, 2020



Frac & Bundled Wireline

Revenue 


$

141,331


Cost of services


126,705


Gross profit excluding depreciation and amortization


14,626


Management adjustments associated with cost of services


549


Adjusted gross profit


$

15,175





Average hydraulic fracturing fleets deployed


13


Fully-utilized hydraulic fracturing fleets


11


Annualized adjusted gross profit per fully-utilized fleet


$

5,518






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


 

NEXTIER OILFIELD SOLUTIONS INC. AND SUBSIDIARIES

NON-GAAP FINANCIAL MEASURES

(unaudited, amounts in thousands)







Three Months Ended



September 30, 2020

Net cash provided (used) in operating activities


$

(27,738)


Net cash used in investing activities (1)


(3,397)


Free cash flow use


(31,135)


Acquisition, integration and expansion(2)


7,373


Market-driven costs(2)


1,193


Adjusted free cash flow use


$

(22,569)




(1)

Excludes proceeds from the WSS working capital settlement.








Three Months Ended



June 30, 2020

Net cash provided (used) by operating activities


$

61,927


Net cash used in investing activities


(36,436)


Free cash flow generation


25,491


Acquisition, integration and expansion(2)


12,968


Market-driven costs(2)


14,559


Adjusted free cash flow generation


$

53,018




(2) 

Acquisition, integration and expansion and market-driven costs in the reconciliation to Adjusted free cash flow differs from those included in the reconciliation to Adjusted EBITDA due to cash paid in the quarter related to management adjustments.






Three Months Ended


September 30, 2020

Net loss

$

(102,433)


Plus management adjustments:


Acquisition, integration and expansion

7,288


Non-cash stock compensation

4,748


Impairment of assets

2,681


Market-driven costs

1,422


Divestiture of business

3,848


Other

430


Adjusted net loss

$

(82,016)




Adjusted net loss per share, basic and diluted

$

(0.38)




Weighted-average shares, basic and diluted

214,251


 

NEXTIER OILFIELD SOLUTIONS INC. AND SUBSIDIARIES

NON-GAAP FINANCIAL MEASURES

(unaudited, amounts in thousands)



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 Logo (PRNewsfoto/NexTier Oilfield Solutions)

 

SOURCE NexTier Oilfield Solutions