Skip to content

Elevating Value

Leveraging technology. Delivering value.
NexTier Announces Fourth Quarter 2020 Financial and Operational Results

HOUSTON, Feb. 15, 2021 /PRNewswire/ -- NexTier Oilfield Solutions Inc. (NYSE: NEX) ("NexTier" or the "Company") today reported fourth quarter 2020 financial and operational results. 

Fourth Quarter 2020 Results and Recent Highlights

  • Generated total revenue of $215.1 million in Q4 2020, reflecting an increase of 31% compared to Q3 2020
  • Reported fracturing and integrated wireline revenue of $186.0 million in Q4 2020, reflecting an increase of 32% compared Q3 2020
  • Reported net loss of $60.2 million in Q4 2020, compared to net loss of $102.4 million in Q3 2020
  • Reported SG&A of $23.7 million in Q4 2020, reflecting a decrease of 7% versus Q3 2020 and 58% versus Q1 2020
  • Reported Adjusted SG&A(1) of $20.6 million in Q4 2020, reflecting an increase of 4% versus Q3 2020 and a decrease of 57% versus Q1 2020
  • Reported Adjusted EBITDA(1) of $7.7 million in Q4 2020, compared to $(2.4) million in Q3 2020
  • Averaged 17 deployed and 14 fully-utilized fleets in Q4 2020 vs. 13 deployed and 11 fully-utilized fleets in Q3 2020
  • Exited Q4 2020 with total liquidity of $349.5 million, including $276.0 million of cash; no term loan maturities through 2025

Management Commentary

"The fourth quarter capped off a year in which our team exhibited tremendous perseverance despite unprecedented market challenges," said Robert Drummond, President and Chief Executive Officer of NexTier. "Throughout 2020, we advanced our strategy and better positioned NexTier for long-term success, including integrating our merger of equals, divesting of a major operating segment, and progressing our Low Cost, Low Carbon strategy."

Mr. Drummond continued, "NexTier enters 2021 with renewed enthusiasm around our commitment to provide ESG leadership across U.S. land unconventional shale completions, providing customers with practical options for responsible operations. We are proud to be a leader in reducing carbon emissions, and we continue to invest in cost-effective natural gas-powered equipment and develop other ESG focused technologies. Driven by our proprietary digital NexHub platform, we continue to differentiate NexTier as a leader in well completions by delivering improved efficiencies, reduced emissions, lower costs and enhanced safety performance." 

"We continued to structurally drive out costs, achieving almost a 60% reduction in adjusted SG&A as compared to the first quarter of 2020," said Kenny Pucheu, Chief Financial Officer of NexTier. "We exited the year armed with $276 million of cash, ahead of our commitment at the beginning of the year, reflecting our vigilance around cost control and capital efficiency. Additionally, we continue to challenge our team to drive efficiency and returns, including advancing our initiatives to expand work scope with integrated logistics and the recently launched Power Solutions business."

"After reaching a trough around mid-year, market activity rebounded in the third quarter and into the fourth quarter, driving a more than 30% sequential increase in revenue with positive adjusted EBITDA and margin incrementals," added Mr.  Drummond. "Because of our leading service quality and market readiness program, we have nearly tripled deployed fleets since late June with minimal start-up costs and record safety and operational performance. Looking ahead, we anticipate a more constructive supply and demand balance and improved calendar efficiency as global demand, and call on U.S. shale, returns, setting the stage for a more favorable earnings climate in the second half of 2021 and beyond."

Fourth Quarter 2020 Financial Results

Revenue totaled $215.1 million in the fourth quarter of 2020, compared to $163.7 million in the third quarter of 2020. The sequential increase was primarily driven by increased activity growth across all of our product and service lines, as well as continued strong operational performance, which was partially offset by continued inefficiencies in calendar utilization.

Net loss totaled $60.2 million, or $0.28 per diluted share, in the fourth quarter of 2020, compared to $102.4 million, or $0.48 per diluted share in the third quarter of 2020. Adjusted net loss(1) totaled $63.6 million, or $0.30 per diluted share, in the fourth quarter of 2020, compared to Adjusted net loss of $82.0 million, or $0.38 per diluted share, in the third quarter of 2020.

Selling, general and administrative expense ("SG&A") totaled $23.7 million in the fourth quarter of 2020, compared to SG&A of $25.5 million in the third quarter of 2020. Adjusted SG&A(1) totaled $20.6 million in the fourth quarter of 2020, compared to Adjusted SG&A of $19.8 million in the third quarter of 2020.

Adjusted EBITDA totaled $7.7 million in the fourth quarter of 2020, compared to Adjusted EBITDA of $(2.4) million in the third quarter of 2020.

Fourth Quarter 2020 Management Adjustments

Adjusted EBITDA for the fourth quarter includes management net gain adjustments of approximately $3.4 million, consisting primarily of a $6.0 million non-cash gain on a financial investment, $1.0 million gain from merger and integration related settlements,  $0.6 million for an accounting gain associated with a make-whole provision on the Basic notes received as part of the Well Support Services divestiture in March, $0.7 million realized net gain from market-driven settlements, partially offset by $4.7 million of non-cash stock compensation expense.   

Completion Services

Revenue in our Completion Services segment totaled $200.5 million in the fourth quarter of 2020, compared to $154.0 million in the third quarter of 2020. The sequential increase was primarily from continued higher levels of activity that we began to experience in the third quarter, coupled with strong operational efficiencies, partially offset by calendar gaps as we ended the quarter. Adjusted Gross Profit totaled $23.6 million in the fourth quarter of 2020, compared to $15.1 million in the third quarter of 2020. Net loss totaled $33.5 million in the fourth quarter of 2020, compared to net loss of $50.9 million in the third quarter of 2020.

The Company had an average of 14 fully-utilized fracturing fleets in the fourth quarter of 2020, and exited the fourth quarter of 2020 with 15 fully-utilized and 18 deployed fleets. When taking only fracturing and integrated wireline into account, annualized Adjusted Gross Profit per fully-utilized fracturing fleet totaled $6.2 million in the fourth quarter of 2020, compared to $5.5 million in the third quarter of 2020.

Well Construction and Intervention Services

Revenue in our Well Construction and Intervention ("WC&I") Services segment, totaled $14.6 million in the fourth quarter of 2020, compared to $9.7 million in the third quarter of 2020. The sequential increase was primarily driven by increased activity and market share growth in focused basins. Adjusted Gross Profit totaled $0.9 million in the fourth quarter of 2020, compared to Adjusted Gross Loss of $0.8 million in the third quarter of 2020. Net loss totaled $2.3 million in the fourth quarter of 2020, compared to net loss of $4.0 million in the third quarter of 2020.

Balance Sheet and Capital

Total debt outstanding as of December 31, 2020 totaled $335.5 million, net of debt discounts and deferred finance costs and excluding lease obligations. As of December 31, 2020, total available liquidity was $349.5 million, comprised of cash of $276.0 million, and $73.5 million of available borrowing capacity under our asset-based credit facility.

Total cash used in operations was $13.8 million and cash used in investing activities was $12.5 million, resulting in a cash use of $26.3 million in the fourth quarter of 2020. Excluding cash used for merger and integration related costs of $2.4 million, and net proceeds from market-driven cash settlements of $1.5 million, Adjusted free cash flow use(1) totaled $25.4 million in the fourth quarter of 2020.

Outlook

For the first quarter of 2021, taking into account the expected impact of current inclement weather conditions in areas constituting a majority of our operations, NexTier expects to realize 18 deployed and 15 fully-utilized fleets. Based on this, and combined with continued pricing and calendar pressures, NexTier anticipates a sequential increase in revenue of between 5% and 10% and Adjusted EBITDA in the range of $5 to $10 million. NexTier expects capital expenditures for the first half of 2021 to include $25 million to $30 million of strategic investments comprised primarily of continued ESG focused investments in gas powered equipment and the Company's Power Solutions business. Additionally, NexTier expects capital expenditures for the first half of 2021 to include maintenance capex of $3 million per fleet and a total of approximately $3 million for the remaining product and service lines.

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 February 16, 2021, NexTier will hold a conference call for investors at 7:30 a.m. Central Time (8:30 a.m. Eastern Time) to discuss fourth quarter and full-year 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 10151821. The replay will be available until February 23, 2021. An archive of the webcast will be available shortly after the call on our website at www.nextierofs.com for twelve months following the call.

About NexTier Oilfield Solutions

Headquartered in Houston, Texas, NexTier is an industry-leading U.S. land oilfield service company, with a diverse set of well completion and production services across the most active and demanding basins.  Our integrated solutions approach delivers efficiency today, and our ongoing commitment to innovation helps our customers better address what is coming next.  NexTier is differentiated through four points of distinction, including safety performance, efficiency, partnership and innovation.  At NexTier, we believe in living our core values from the basin to the boardroom, and helping customers win by safely unlocking affordable, reliable and plentiful sources of energy.

(1)  Non-GAAP Financial Measures. The Company has included in this press release or discussed on the conference call described above certain non-GAAP financial measures, some of which are calculated on segment basis or product line basis. These measurements provide supplemental information which the Company believes is useful to analysts and investors to evaluate its ongoing results of operations, when considered alongside GAAP measures such as net income and operating income. 

Non-GAAP financial measures include Adjusted EBITDA, Adjusted Gross Profit, Adjusted Net Income (loss), free cash flow, Adjusted free cash flow, Adjusted SG&A, 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 integrated wireline product line because it excludes the effects of the capital structure and certain non-cash items from the product line's operating results.  For a reconciliation of these non-GAAP measures, please see the tables at the end of this press release.

Non-GAAP Measure Definitions: Adjusted EBITDA is defined as net income (loss) adjusted to eliminate the impact of interest, income taxes, depreciation and amortization, along with certain items management does not consider in assessing ongoing performance. Adjusted Gross Profit is defined as revenue less cost of services, further adjusted to eliminate items in cost of services that management does not consider in assessing ongoing performance. Adjusted Gross Profit at the segment level is not considered to be a non-GAAP financial measure as it is our segment measure of profit or loss and is required to be disclosed under GAAP pursuant to ASC 280. Adjusted Net Income (Loss) is defined as net income (loss) plus the after-tax amount of merger/transaction-related costs and other non-routine items. Adjusted SG&A is defined as selling, general and administrative expenses adjusted for severance and business divestiture costs, merger/transaction-related costs, and other non-routine items. Free cash flow is defined as the net increase (decrease) in cash and cash equivalents before financing activities, including share repurchase activity. Adjusted free cash flow adjusts free cash flow for certain management adjustments. Annualized Adjusted Gross Profit per fully-utilized fleet, is a non-GAAP measure and is defined as (i) revenue less cost of services attributable to the fracturing and integrated wireline product line, further adjusted to eliminate items in cost of services that management does not consider in assessing ongoing performance for the fracturing and integrated wireline product line, (ii) divided by the fully-utilized fracturing and integrated wireline fleets (average deployed fleets multiplied by fleet utilization) per quarter, and then (iii) multiplied by four. Adjusted EBITDA decremental is calculated by dividing (i) the difference between third quarter Adjusted EBITDA and fourth quarter Adjusted EBITDA; by (ii) the difference between third quarter Revenue and fourth 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
Partner (ICR)
marc.silverberg@icrinc.com 

 

NEXTIER OILFIELD SOLUTIONS INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

(unaudited, amounts in thousands, except per share data)



Three Months Ended


 December 31,
2020


September 30,
2020


June 30,
2020


March 31,
2020









Revenue

$

215,054



$

163,675



$

196,227



$

627,625


Operating costs and expenses:








Cost of services

191,511



150,066



178,771



512,226


Depreciation and amortization

67,400



73,570



75,260



85,821


Selling, general and administrative expenses

23,718



25,521



38,024



56,884


Merger and integration

(959)



7,288



14,028



12,182


Gain on disposal of assets

(2,519)



(3,027)



(953)



(7,962)


Impairment expense



2,681





34,327


Total operating costs and expenses

279,151



256,099



305,130



693,478


Operating loss

(64,097)



(92,424)



(108,903)



(65,853)


Other income (expense):








Other income (expense), net

7,819



(3,978)



2,259



416


Interest expense, net

(3,709)



(5,524)



(5,353)



(6,066)


Total other income (expense)

4,110



(9,502)



(3,094)



(5,650)


Loss before income taxes

(59,987)



(101,926)



(111,997)



(71,503)


Income tax expense

(219)



(507)



(491)



(253)


Net loss

(60,206)



(102,433)



(112,488)



(71,756)










Net loss per share: basic

$

(0.28)



$

(0.48)



$

(0.53)



$

(0.34)


Net loss per share: diluted

$

(0.28)



$

(0.48)



$

(0.53)



$

(0.34)










Weighted-average shares: basic

214,315



214,251



213,760



212,842


Weighted-average shares: diluted

214,315



214,251



213,760



212,842


 

NEXTIER OILFIELD SOLUTIONS INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS & COMPREHENSIVE INCOME (LOSS)

(unaudited, amounts in thousands, except per share data)



Year Ended


December 31, 2020

Revenue

$

1,202,581


Operating costs and expenses:


Cost of services

1,032,574


Depreciation and amortization

302,051


Selling, general and administrative expenses

144,147


Merger and integration

32,539


Gain on disposal of assets

(14,461)


Impairment expense

37,008


Total operating costs and expenses

1,533,858


Operating loss

(331,277)


Other income (expense):


Other income (expense), net

6,516


Interest expense, net

(20,652)


Total other income (expense)

(14,136)


Loss before income taxes

(345,413)


Income tax expense

(1,470)


Net loss

(346,883)


Other comprehensive loss:


Foreign currency translation adjustments

(241)


Hedging activities

(6,422)


Total comprehensive loss

$

(353,546)




Net loss per share: basic

$

(1.62)


Net loss per share: diluted

$

(1.62)




Weighted-average shares: basic

213,795


Weighted-average shares: diluted

213,795


 

NEXTIER OILFIELD SOLUTIONS INC. AND SUBSIDIARIES

CONSOLIDATED BALANCE SHEETS

(unaudited, amounts in thousands)




December 31,


December 31,



2020


2019

ASSETS





Current assets:





Cash and cash equivalents


$

275,990



$

255,015


Trade and other accounts receivable, net


122,584



350,765


Inventories, net


30,068



61,641


Assets held for sale


126



141


Prepaid and other current assets


58,011



20,492


Total current assets


486,779



688,054


Operating lease right-of-use assets


37,157



54,503


Finance lease right-of-use assets


1,132



9,511


Property and equipment, net


470,711



709,404


Goodwill


104,198



137,458


Intangible assets


51,182



55,021


Other noncurrent assets


6,729



10,956


Total assets


$

1,157,888



$

1,664,907


LIABILITIES AND STOCKHOLDERS' EQUITY





Current liabilities:





Accounts payable


$

61,259



$

115,251


Accrued expenses


134,230



234,895


Customer contract liabilities


266



60


Current maturities of operating lease liabilities


18,551



23,473


Current maturities of finance lease liabilities


606



4,594


Current maturities of long-term debt


2,252



2,311


Other current liabilities


2,993



5,610


Total current liabilities


220,157



386,194


Long-term operating lease liabilities, less current maturities


24,232



35,123


Long-term finance lease liabilities, less current maturities


504



4,844


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


333,288



335,312


Other non-current liabilities


22,419



16,662


Total non-current liabilities


380,443



391,941


Total liabilities


600,600



778,135


Stockholders' equity:





Common stock


2,144



2,124


Paid-in capital in excess of par value


989,995



966,762


Retained deficit


(421,741)



(73,333)


Accumulated other comprehensive loss


(13,110)



(8,781)


Total stockholders' equity


557,288



886,772


Total liabilities and stockholders' equity


$

1,157,888



$

1,664,907


 

NEXTIER OILFIELD SOLUTIONS INC. AND SUBSIDIARIES

ADDITIONAL SELECTED FINANCIAL AND OPERATING DATA

(unaudited, amounts in thousands)



Three Months Ended


December 31, 2020


September 30, 2020

Completion Services:




Revenue

$

200,450



$

154,016


Cost of services

177,777



139,477


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

56,149



65,468


Net loss

(33,476)



(50,929)


Adjusted gross profit(1)

$

23,600



$

15,145






Well Construction and Intervention Services:




Revenue

$

14,604



$

9,659


Cost of services

13,734



10,589


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

3,199



3,093


Net loss

(2,329)



(4,023)


Adjusted gross profit (loss)(1)

$

920



$

(785)



(1)  The Company uses Adjusted gross profit as its measure of profitability for segment reporting.




Three Months Ended


Variance



December 31, 2020


September 30, 2020


Completion Services:







Adjusted gross profit


$

23,600



$

15,145



$

8,455


Revenue


$

200,450



$

154,016



$

46,434









Adjusted gross profit incremental






18

%




Three Months Ended


Variance



December 31, 2020


September 30, 2020


Well Construction and Intervention Services:







Adjusted gross profit (loss)


$

920



$

(785)



$

1,705


Revenue


$

14,604



$

9,659



$

4,945









Adjusted gross profit incremental






34

%








 

NEXTIER OILFIELD SOLUTIONS INC. AND SUBSIDIARIES

NON-GAAP FINANCIAL MEASURES

(unaudited, amounts in thousands)




Three Months Ended



December 31, 2020


September 30, 2020

Net loss


$

(60,206)



$

(102,433)


Interest expense, net


3,709



5,524


Income tax expense


219



507


Depreciation and amortization


67,400



73,570


EBITDA


$

11,122



$

(22,832)


Plus management adjustments:





Acquisition, integration and expansion(1)


(959)



7,288


Non-cash stock compensation(2)


4,675



4,748


Impairment of assets (5)




2,681


Market-driven costs(3)


(650)



1,422


Divestiture of business(4)


(617)



3,848


Unrealized gain on equity security investment


(6,000)




Other


111



430


Adjusted EBITDA


$

7,682



$

(2,415)







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

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




Three Months Ended


Variance



December 31, 2020


September 30, 2020









Adjusted EBITDA


$

7,682



$

(2,415)



$

10,097


Revenue


$

215,054



$

163,675



$

51,379









Adjusted EBITDA incremental(1)






20

%








(1)     Adjusted EBITDA incremental is calculated by dividing (i) the difference between third quarter Adjusted EBITDA and fourth quarter 
        Adjusted EBITDA; by (ii) the difference between third quarter Revenue and fourth quarter Revenue.

 

NEXTIER OILFIELD SOLUTIONS INC. AND SUBSIDIARIES

NON-GAAP FINANCIAL MEASURES

(unaudited, amounts in thousands)




Year Ended



December 31, 2020

Net loss


$

(346,883)


Interest expense, net


20,652


Income tax expense


1,470


Depreciation and amortization


302,051


EBITDA


$

(22,710)


Plus management adjustments:



Acquisition, integration and expansion(1)


33,116


Non-cash stock compensation(2)


20,015


Impairment of assets (3)


37,008


Market-driven costs(4)


28,308


Divestiture of business(5)


(8,589)


Unrealized gain on equity security investment


(6,000)


Other


(2,172)


Adjusted EBITDA


$

78,976





(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 goodwill impairment and write-down of inventory carrying 
        value down to its net realizable value.

(4)     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.

(5)     Represents net gain 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.

 

NEXTIER OILFIELD SOLUTIONS INC. AND SUBSIDIARIES

NON-GAAP FINANCIAL MEASURES

(unaudited, amounts in thousands)




Three Months Ended
December 31, 2020

Selling, general and administrative expenses


$

23,718


Less management adjustments:



Non-cash stock compensation


(4,675)


Market-driven costs


1,627


Other


(111)


Adjusted selling, general and administrative


$

20,559





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
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

(unaudited, amounts in thousands)



Three Months Ended December 31, 2020


Completion
Services


WC&I


Total

Revenue

$

200,450



$

14,604



$

215,054


Cost of services

177,777



13,734



191,511


Gross profit (loss) excluding depreciation and amortization

22,673



870



23,543


Management adjustments associated with cost of services

927



50



977


Adjusted gross profit (loss)

$

23,600



$

920



$

24,520




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



December 31, 2020



Frac & Integrated Wireline

Revenue 


$

185,993


Cost of services


165,006


Gross profit excluding depreciation and amortization


20,987


Management adjustments associated with cost of services


856


Adjusted gross profit


$

21,843





Average hydraulic fracturing fleets deployed


17


Fully-utilized hydraulic fracturing fleets


14


Annualized adjusted gross profit per fully-utilized fleet


$

6,241





Three Months Ended



September 30, 2020



Frac & Integrated 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


 

NEXTIER OILFIELD SOLUTIONS INC. AND SUBSIDIARIES

NON-GAAP FINANCIAL MEASURES

(unaudited, amounts in thousands)



Three Months Ended





December 31, 2020

Net cash provided (used) in operating activities


$

(13,791)


Net cash used in investing activities


(12,535)


Free cash flow


(26,326)


Acquisition, integration and expansion(2)


2,424


Market-driven costs(2)


(1,493)


Adjusted free cash flow


$

(25,395)





Three Months Ended





September 30, 2020

Net cash provided (used) by operating activities


$

(27,738)


Net cash used in investing activities(1)


(3,397)


Free cash flow


(31,135)


Acquisition, integration and expansion(2)


7,373


Market-driven costs(2)


1,193


Adjusted free cash flow


$

(22,569)



(1)       Excludes proceeds from the WSS working capital settlement.

(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


December 31, 2020

Net loss

$

(60,206)


Plus management adjustments:


Acquisition, integration and expansion

(959)


Non-cash stock compensation

4,675


Impairment of assets


Market-driven costs

(650)


Divestiture of business

(617)


Financial investment

(6,000)


Other

111


Adjusted net loss

$

(63,646)




Adjusted net loss per share, basic and diluted

$

(0.30)




Weighted-average shares, basic and diluted

214,315


 

NEXTIER OILFIELD SOLUTIONS INC. AND SUBSIDIARIES

NON-GAAP FINANCIAL MEASURES

(unaudited, amounts in thousands)



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 Logo (PRNewsfoto/NexTier Oilfield Solutions)

 

SOURCE NexTier Oilfield Solutions