Nine Energy Service Expands Cementing Operations in Haynesville Basin with Opening of New Facility in Longview, TX
Leverages technical expertise and fleet of modern equipment to meet increased demand for solving complex cementing challenges
HOUSTON (Nov. 10, 2020) – Nine Energy Service, Inc.(NYSE: NINE), a leading oilfield services company specializing in completion solutions within North America and abroad, announced today the opening of its new 348,000-square-foot cementing facility in Longview, Texas. The facility is expected to be fully operational by the end of November and is the first expansion of Nine’s cementing service line in the Haynesville Basin.
The new cementing facility, which will operate from 9674 TX-149, Longview, TX 75603, and will feature a state-of-the-art laboratory to create and test a broad range of cutting-edge cement slurries, as well as a bulk plant to house additives and other raw materials for storage and distribution.
The opening of the new facility demonstrates Nine’s ability to recognize and capitalize on opportunities that better position the company operationally, as well as its confidence in the near and long-term profitability outlook of the Haynesville basin, even in the face of today’s challenging environment.
The Nine team was able to execute this expansion with minimal capital outlay and the Company’s previous annual 2020 capital expenditure guidance of approximately $10-$15 million remains unchanged. The Company will utilize current and newly delivered cementing spreads and components from its current operations to facilitate the majority of the project. Nine anticipates generating some revenue from its Longview location in the interim period from its opening in November through the end of 2020 and anticipates a more significant contribution starting in the first quarter of 2021.
“We identified the Haynesville as a strategic priority for adding size and scale to our existing cementing operations,” said Ann Fox, President and CEO, Nine Energy Service. “Cementing is a technically challenging service line with high barriers to entry within our industry and a relatively consolidated competitive landscape. Our team has continued to gain market share within other basins and we have confidence that with this expansion into the Haynesville, we will win market share and drive revenue growth.”
District Manager Louis Bone will oversee operations and personnel serving the Longview cementing facility. Bone is a 24-year veteran of the oilfield services and cementing industries with experience in both domestic, international and offshore cementing operations.
Since 2012, Nine’s cementing business line has serviced customers across the southeast region. The company’s new operations in Longview, Texas will add to the list of Nine's other locations dedicated to cementing, which include Jacksboro, Texas; Pleasanton, Texas; Sweetwater, Texas, and Hobbs, New Mexico.
“Our cementing team in the Longview facility will be able to utilize their expertise in high-pressure, high-temperature environments to help customers overcome production-threatening challenges and drive efficiencies,” said Joe Huwel, President, Cementing and Coiled Tubing, Nine Energy Service. “The decision to expand our cementing operations in the Haynesville is both an indication of our long-term commitment to innovation in cementing as well as our sustained interest in the region.”
With headquarters in Houston, Texas, Nine operates facilities in the Permian, Eagle Ford, SCOOP/STACK, Niobrara, Barnett, Bakken, Marcellus, Utica, and Canada.
For more information about Nine Energy Service's cementing services and solutions, visit https://nineenergyservice.com/cementing-drilling-solutions
Nine Energy Service is an oilfield services company that offers completion solutions within North America and abroad. The Company brings years of experience with a deep commitment to serving clients with smarter, customized solutions and world-class resources that drive efficiencies. Serving the global oil and gas industry, Nine continues to differentiate itself through superior service quality, wellsite execution and cutting-edge technology. Nine is headquartered in Houston, Texas with operating facilities in the Permian, Eagle Ford, SCOOP/STACK, Niobrara, Barnett, Bakken, Haynesville, Marcellus, Utica and throughout Canada.
The foregoing contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. Forward-looking statements are those that do not state historical facts and are, therefore, inherently subject to risks and uncertainties. Forward-looking statements also include statements that refer to or are based on projections, uncertain events or assumptions. The forward-looking statements included herein are based on current expectations and entail various risks and uncertainties that could cause actual results to differ materially from those forward-looking statements. Such risks and uncertainties include, among other things, the severity and duration of the COVID-19 pandemic, related economic repercussions and the resulting negative impact on demand for oil and gas; the current significant surplus in the supply of oil and the ability of the OPEC+ countries to agree on and comply with supply limitations; the duration and magnitude of the unprecedented disruption in the oil and gas industry currently resulting from the impact of the foregoing factors, which is negatively impacting our business; operational challenges relating to the COVID-19 pandemic and efforts to mitigate the spread of the virus, including logistical challenges, protecting the health and well-being of our employees, remote work arrangements, performance of contracts and supply chain disruptions; pricing pressures, reduced sales, or reduced market share as a result of intense competition in the markets for the Company’s dissolvable plug products; the Company’s ability to implement and commercialize new technologies, services and tools; the Company’s ability to grow its completion tool business; the Company’s ability to reduce capital expenditures; the Company’s ability to accurately predict customer demand; the loss of, or interruption or delay in operations by, one or more significant customers; the loss of or interruption in operations of one or more key suppliers; the adequacy of the Company’s capital resources and liquidity; the incurrence of significant costs and liabilities resulting from litigation; the loss of, or inability to attract, key personnel; the Company’s ability to successfully integrate recently acquired assets and operations and realize anticipated revenues, cost savings or other benefits thereof; and other factors described in the “Risk Factors” and “Business” sections of the Company’s most recently filed Annual Report on Form 10-K and subsequently filed Quarterly Reports on Form 10-Q and Current Reports on Form 8-K. Readers are cautioned not to place undue reliance on forward-looking statements, which speak only as of the date hereof, and, except as required by law, the Company undertakes no obligation to update those statements or to publicly announce the results of any revisions to any of those statements to reflect future events or developments.