Nine Energy Service values sustainability and our ability to support the sustainability of our customers. We are committed to integrating sustainable practices across our operations while responsibly managing our resources and meeting the needs of our customers. We are working toward robust environmental, social, and governance (ESG) disclosures and strategies over the next two years in line with credible frameworks such as the Sustainability Accounting Standards Board (SASB) and the Task Force on Climate-Related Financial Disclosures (TCFD).
- Our Sustainability Principles
- Humility, hard work, and respect for the people and communities in which we live and work is at the heart of who we are and what we do.
- We are committed to integrating sustainable practices across our operations while responsibly managing our resources and meeting the needs of our customers.
- We focus on and invest in protecting the health and safety of our employees, customers, and communities.
- We believe strong leadership is the foundation to effective and responsible governance and we are dedicated to the rigorous oversight of decision-making processes, key risks and opportunities material to our business, and the effective delegation of authority for achieving successful outcomes.
- We are committed to deploying innovative strategies and technologies to enable the near-term reduction of greenhouse gas emissions (GHGs) from our operations and for our customers while contributing to a future of sustained, long-term emissions mitigation.
- Biodiversity Statement
Nine Energy Service recognizes the importance of protecting and conserving biodiversity in the areas we operate. As a service company, we consider biodiversity in two areas: on our customers’ locations and within our own field offices and equipment yards.
Our primary operations are conducted on locations secured and managed by our customers. While management of disturbed acreage and associated potential ecological impact is outside our operational control, we work closely with customers during the planning and execution phases of our field services to ensure we can meet all standards set by customers as well as all applicable local, state, and federal regulations. We believe our customers are best suited to identify any sensitive flora, fauna, and ecosystems that may be present at their locations, secure any necessary permits, and manage all biodiversity protections. We also recognize the responsibility that we have as the supplier to take a proactive approach to conduct our operations in a way that limits ecological impacts and complies with our customers’ biodiversity-related requirements. This includes ensuring our field staff are aware of sensitive ecological elements identified by the customer as potentially present at a job site and follow any related procedures set by the customer.
Our Health, Safety, and Environment (HSE) Manual sets policies and procedures to adequately manage environmental-related matters in all operations and business functions that are not directed by our customers, such as waste and chemical disposal and handling, spill prevention, environmental incident response and reporting, water handling, and local pollution mitigation. Nine Energy Service’s training program includes required trainings related to these topics, such as spill control and response, for applicable employees.
- Safety & Responsible Operations
Safety is our highest priority. Our Health, Safety, and Environment (HSE) Manual, HSE Policy, and Employee Handbook outline our policies and procedures to ensure our employees, contractors, customers, and communities remain safe. We also have a Stop Work Authority Policy and are committed to creating a culture in which stop work authority requests are respected and freely exercised.
We provide employees with safety resources, require employees, supervisors, and contractors to undergo various safety trainings, and have established systems for employees to anonymously raise concerns or report complaints about workplace safety.
To ensure our safety policies and procedures are fully implemented at all company facilities and employee worksites, HSE audits and inspections are performed at mandatory frequencies throughout the year. The results of these audits and inspections are monitored, and corrective and preventative actions are implemented when appropriate.
We adhere to all Department of Transportation (DOT) regulations and actively track and measure our safety performance to ensure we are continually improving safety within the workplace and in our communities. Our safety metrics for the previous three years include:
2020 2021 2022 TRIR1 0.30 0.48 0.41 No. Recordable Injuries 4
7 LTIR2 0.00 0.08 0.11 Near Miss Incidents 61 39 47 No. Fatalities 0 0 0 Total Hours Worked 2,651,514 2,515,333 3,422,527
1: TRIR - Total Recordable Incident Rate
2: LTIR - Lost Time Injuries Rate
- Material Management
Nine’s commitment to environmental stewardship requires responsible management and handling of chemicals used in our services and waste resulting from our operations. Our HSE Manual includes procedures covering waste and hazardous materials handling and storage, transportation and disposal, wastewater management, environmental permitting and compliance, and reporting environmental incidents. To ensure diligent chemical handling, our HSE Manual includes guidance for hazardous chemicals reporting, hazard communication, and Safety Data Sheets (SDS).
Nine maintains chemical manifests to appropriately track onsite chemicals and hazardous waste. To increase transparency around waste and chemicals handled by our company, we are actively working toward measuring and disclosing hazardous and non-hazardous waste on an annual basis.
- Emissions & Air Quality
In 2021, we elected to review our 2019 and 2020 on-road vehicle fleet emissions and establish a preliminary baseline to better understand our carbon footprint. We are actively working toward disclosing a comprehensive baseline of our Scope 1 greenhouse gas emissions in 2023 and developing a focused strategy to reduce our own emissions and the emissions of our customers.
To further Nine’s commitment to reducing the emissions of our customers, we conducted an analytical study with ERM to quantify cradle-to-grave emissions reduction achieved with a dissolvable plug versus composite plug completion. The study helped us understand the emission-related advantages of our services by demonstrating that the dissolvable plugs we offer to customers have a ~91% smaller carbon footprint per wellbore than conventional composite plugs when customers eliminate a drill-out.
Additionally, we developed and deployed a fleet of electric-powered wireline units in 2021 that provide increased power and efficiency with significantly reduced carbon emissions compared to conventional diesel-powered wireline units. We used our electric wireline units as part of a joint field trial that successfully demonstrated the operational and environmental benefits of an all-electric approach to well completion. We are continuing to allocate capital to the further development of our electric wireline fleet.
Our Health, Safety, and Environment (HSE) Manual’s Environmental Management section provides guidance for corporate HSE and operations personnel on coordinating the management of air emissions for each facility. These include procedures for identifying and tracking potentially applicable regulatory requirements, preparing emissions inventories to determine necessary permits and satisfy permit reporting requirements, using appropriate equipment to control and capture air pollutants, operating air pollution control devices in accordance with manufacturer guidance, and maintaining and inspecting air pollution control devices on a regular basis to verify proper operation.
- Water Management
Nine Energy Service does not offer water-intensive stimulation and completion services that are conventionally considered to be part of an oilfield services company. Our primary use of freshwater occurs within our cementing operations. Freshwater used for cementing and washing our equipment is sourced, transported, and provided by our upstream customers.
Because we know responsible handling of freshwater and wastewater is important to prevent spills, reduce unnecessary use, and safely dispose, we are working toward measuring and communicating our total freshwater handled over the next year. Our HSE Manual’s Environmental Management section includes policies and guidance on wastewater management, stormwater management, spill preparedness and response, and reporting environmental incidents.
- Land Stewardship & Community Engagement
We value the communities in which we live, work, and operate. We employ several policies and procedures to mitigate our impact to locations and nearby residents. These include planning haul routes and monitoring noise in coordination with our customers. To ensure stakeholders have the ability to ask questions and raise potential issues, Nine employs a hotline that directs communication to the appropriate contact with the company to address it and follow up with the stakeholder.
To mitigate impacts to land and the environment, we follow all customer biodiversity and environmental policies, provide guidance on spill preparedness and response in our HSE Manual, and comply with federal and state spill reporting.
- Our People
At Nine, we believe our people are our greatest asset. We strive to create a workplace where employees are treated with respect, have opportunities to professionally grow, and can envision a future for themselves.
We believe that providing professional development opportunities for our employees is key to not only the performance of the company, but the growth of every individual. For this reason, managers offer employees funding and opportunities for training relevant to their jobs.
We are proud to offer our employees competitive benefits and pay. An independent party evaluates our healthcare plan on an annual basis, and it continually benchmarks above our peers. We work to enrich and improve these healthcare benefits every year.
Furthermore, we are actively working towards creating policies, initiatives and procedures that promote diversity and inclusion throughout the company. To support these efforts and track our progress, we actively measure the gender and racial representation of our workforce.
2019 2020 2021 Gender Representation - % Female Total Workforce 8% 11% 11% Managers1 13% 14% 14% Individual Contributors 7% 11% 11% Minority Representation - % Minorities Total Workforce 31% 25% 29% Managers1 10% 16% 17% Individual Contributors 32% 27% 31%
1: The Manager category consists of mid-level managers, officials, and senior/executive managers and officials
*2022 information is pending and will be released upon completion of the EEO-1 report.
- ESG Governance
At Nine Energy Service, we understand ESG-related topics and issues should be managed at all levels of our company. ESG risks and opportunities are regularly discussed at the leadership level. To ensure a disciplined focus on ESG-related progress, performance, risks, and opportunities, the Senior Management team discusses ESG strategy and related topics on monthly operational calls across corporate functions and service lines. Nine’s Management team works with third-party ESG advisors on a regular basis to build framework, infrastructure and execute the strategy throughout the organization. Results from these discussions are provided to the Board on at least a quarterly basis for input and guidance on the strategic direction and progress. Additionally, Nine employs a dedicated ESG Manager that drives the implementation of Nine’s ESG strategy.
These ongoing reviews are supported and complemented by weekly, or as needed, updates to the leadership team, where employees and teams raise identified risks and leadership assesses their merits and potential necessary actions. As risks are identified, certain risks are raised to the board level throughout the year. Each one of our employees reports up to one of the 11 individuals on the leadership team through our organizational structure, enabling Nine to take a holistic, all-hands approach to risk identification and mitigation.
Risk topics that are regularly reviewed and addressed include:
- Community Relations
- Capital Availability/Liquidity
- Natural Disasters/Catastrophe