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
|
|
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SOURCE NexTier Oilfield Solutions