Company: NINE
Filing Date: 2025-03-06
Form Type: 10-K
Source: 0001532286-25-000008
Chunk: 81

Company: Nine Energy Service, Inc.
Filing Date: 2025-03-06
Form: 10-K
Item: Item 7
Chunk 81
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 fourth quarter of 2024 levels if commodity prices are supportive and customer budgets are reset and believe that we are well-positioned to capitalize on an improving market, should it materialize.

Significant factors that are likely to affect commodity prices moving forward include geopolitical and economic developments in the U.S. and globally, including conflicts, instability, acts of war or terrorism in oil producing countries or regions, particularly the Middle East, Russia, South America and Africa; actions of the members of OPEC and other oil exporting nations that relate to or impact oil production or supply; weather conditions; the effect of energy, monetary, and trade policies of the U.S.; the pace of economic growth in the U.S. and throughout the world, including the potential for macro weakness; changes to energy regulations and policies, including those of the EPA and other governmental bodies; and overall North American oil and natural gas supply and demand fundamentals, including the pace at which export capacity grows. Furthermore, although as noted above, our customers’ activity and spending levels, and thus demand for our services and products, are strongly influenced by current and expected oil and natural gas prices, even with price improvements in oil and natural gas, operator activity may not materially increase, as operators remain focused on operating within their capital plans, and uncertainty remains around supply and demand fundamentals.

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Results of Operations

 Year Ended December 31, 20242023ChangePercentage Change (in thousands, except percentage change)Revenues$554,104 $609,526 $(55,422)(9)%Cost of revenues (exclusive of depreciation and amortization shown separately below)456,729 490,750 (34,021)(7)%Adjusted gross profit$97,375 $118,776 $(21,401)(18)%General and administrative expenses$51,298 $59,817 $(8,519)(14)%Depreciation25,594 29,141 (3,547)(12)%Amortization of intangibles11,183 11,516 (333)(3)%Loss on revaluation of contingent liability104 437 (333)(76)%Loss on sale of property and equipment256 292 (36)(12)%Income from operations8,940 17,573 (8,633)(49)%Non-operating expenses49,824 49,201 623 1 %Loss before income taxes(40,884)(31,628)(9,256)29 %Provision for income