Nine Energy Service, Inc.

Greetings and welcome to Nine Energy Service second quarter 2024 earnings call. At this time, all participants are on a listen-only mode. A question and answer session will follow the formal presentation. If anyone should require operator assistance during the conference, please press star zero on your telephone keypad. As a reminder, this conference is being recorded. I will now turn it over to Heather Schmidt.

Thank you. Good morning, everyone, and welcome to the Nine Energy Service Earnings conference call to discuss our results for the second quarter of 2024. With me today are Anne Fox, President and Chief Executive Officer, and Guy Sirkis, Chief Financial Officer. We appreciate your participation. Some of our comments today may include forward-looking statements reflecting views about future events. Forward-looking statements are subject to a number of risks and uncertainties, many of which are beyond our control. These risks and uncertainties can cause actual results to differ materially from our current expectations. We advise listeners to review our earnings release and the risk factors discussed in our filings with the SEC. We undertake no obligation to revise or update publicly any forward-looking statements for any reason. Our comments today also include non-GAAP financial measures. Additional details and a reconciliation to the most directly comparable GAAP financial measures are also included in our second quarter press release and can be found in the investor relations section of our website. I will now turn the call over to Ant.

Thank you, Heather. Good morning, everyone. Thank you for joining us today to discuss our second quarter results for 2024. Revenue for the quarter was 132.4 million, which was within our original guidance of 130 to 140 million. We generated adjusted EBITDA of 9.7 million and diluted EPS of negative 40 cents. During Q2, we continued to see rig declines coming out of an already depressed market, which impacted both our revenue and earnings. Since the end of 2023, we have seen over 40 additional rigs come out of the market. This is following a year in which we had over 150 rigs come off the market, resulting in almost a 200 rig decline since the end of 2022. As a spot market business, our revenues and earnings are correlated very closely with the U.S. land rig count, which drives volume and pricing for all of our service lines. In addition to lower rig counts, We also had full quarter realizations of lower pricing in our cementing business, as well as increased white space across most of our service lines, which negatively impacted margins. As anticipated, cementing revenue was down slightly this quarter due to both a decrease in activity and pricing. This service line has been significantly impacted by the continued rig declines, especially in the Hainesville and Eagleford basins. We have historically seen this business recover quickly and rapidly with the market, and it is one of our most differentiated service lines. Completion tool revenue was down single digits this quarter due to a reduction of tools sold related to U.S. land activity, as well as a decrease in international sales. Growing our international tools business continues to be an important part of our medium to long-term strategy, but our international revenue will continue to be lumpy quarter over quarter. We had a strong quarter in our U.S. refract business. We have run over 300 refract jobs to date for some of the largest acreage holders in the US and have established ourselves as one of the top refract providers. This will be an important niche market for Nine moving forward. Both our dissolvable and composite plugs continue to perform very well. We are seeing more operators running dissolvables, especially in the toe of the well, as lateral lengths continue to extend. Our customers are getting bigger through consolidation which often means bigger programs and more complex, difficult completions, as well as higher quality and ESG standards. This is supportive for the adoption of dissolvables in the U.S. market moving forward. Coiled tubing revenue is down due mostly to white space in our customers' completion schedules in the Permian and sustained activity declines in the Hainesville, which has historically accounted for over 50% of coiled tubing revenue for nine. Despite low activity levels in the Northeast, Our wireline team maintained flat revenue quarter over quarter. Wireline is the most competitive service line in which we operate, yet our team continues to differentiate through superior well site execution and service. Additionally, our wireline team has been able to supplement pump down revenue with remedial and gas storage revenue, which is typically more specialized than traditional pump down operations. I would now like to turn the call over to Guy to walk through detailed financial information.