Company: NINE
Filing Date: 2025-08-05
Form Type: 10-Q
Source: 0001532286-25-000016
Chunk: 124

Company: Nine Energy Service, Inc.
Filing Date: 2025-08-05
Form: 10-Q
Item: Part I, Item 2
Chunk 124
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 and negative covenants, including financial reporting requirements and limitations on indebtedness, liens, mergers, consolidations, liquidations and dissolutions, sales of assets, dividends and other restricted payments and investments (including acquisitions). In addition, the 2025 ABL Credit Agreement contains a financial covenant requiring a minimum fixed charge ratio of 1.10 to 1.00 that is tested quarterly when the availability under the 2025 ABL Credit Facility is less than $10.0 million. This financial covenant applies until the availability exceeds such threshold for 30 consecutive days.

At June 30, 2025, we had $49.4 million of borrowings under the 2025 ABL Credit Facility, and our availability under the 2025 ABL Credit Facility was approximately $51.3 million. In July 2025, we borrowed an additional $13.4 million under the 2025 ABL Credit Facility.

For additional information on the 2018 ABL Credit Facility and the 2025 ABL Credit Facility, see Note 8 – Debt Obligations included in Item 1 of Part I of this Quarterly Report on Form 10-Q.

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Cash Flows

Cash flows provided by (used in) operations by type of activity were as follows for the six months ended June 30, 2025 and 2024: 

Six Months Ended June 30,20252024(in thousands)Operating activities$4,811 $4,057 Investing activities(9,746)(8,093)Financing activities(5,471)(719)Impact of foreign exchange rate on cash281 (58)Net change in cash, cash equivalents, and restricted cash$(10,125)$(4,813)

Operating Activities

Net cash provided by operating activities was $4.8 million in the first six months of 2025 compared to $4.1 million in the first six months of 2024. The increase in cash flow provided by operating activities was primarily attributed to a $6.9 million increase in cash provided by operations, driven mainly by a decreased net loss in comparison to the first six months of 2024. The increase was partially offset by a $6.2 million decrease in cash provided by working capital in comparison to the first six months of 2024, driven mainly by a decrease in cash provided by accounts receivable collections between periods.

Investing Activities

Net cash used in investing activities was