Company: NINE
Filing Date: 2025-05-07
Form Type: 10-Q
Source: 0001532286-25-000011
Chunk: 42

Company: Nine Energy Service, Inc.
Filing Date: 2025-05-07
Form: 10-Q
Item: Part I, Item 1
Chunk 42
---
 to meet our investment and target liquidity requirements. Our future success and growth will be highly dependent on our ability to continue to access outside sources of capital, which we cannot guarantee.

At March 31, 2025, we had $17.3 million of cash and cash equivalents and $36.5 million of availability under the 2018 ABL Credit Facility (as defined and described below), which resulted in a total liquidity position of $53.8 million. On May 1, 2025, we repaid all borrowings outstanding under the 2018 ABL Credit Facility and replaced the 2018 ABL Credit Facility with the 2025 ABL Credit Facility (as defined and described below) under which we borrowed $48.9 million on such date. As of May 1, 2025, after such borrowings, we had $51.3 million of availability under the 2025 ABL Credit Facility.

We believe that, based on our current forecasts, our cash on hand, together with cash flows from operations and borrowings under the 2025 ABL Credit Facility, should be sufficient to fund our capital requirements for at least the next twelve months from the issuance date of our condensed consolidated financial statements. However, we can make no assurance 

 22

regarding our ability to achieve our forecasts, which are materially dependent on our financial performance and the ever-changing market.

ATM Program

On November 6, 2023, we entered into an equity distribution agreement (the “Equity Distribution Agreement”) with Piper Sandler & Co. (the “Agent”), pursuant to which we may, from time to time, sell shares of our common stock having an aggregate offering price of up to $30.0 million through the Agent acting as our sales agent. The Agent will receive a commission equal to 3.0% of the gross sale price of any shares sold under the Equity Distribution Agreement. 

Under the Equity Distribution Agreement, we will set the parameters for the sale of the shares thereunder, including the number of shares to be sold, the time period during which sales are requested to be made and any price below which sales may not be made. During both the three months ended March 31, 2025 and March 31, 2024, no shares were sold under the Equity Distribution Agreement.

Units Offering and 2028 Notes

On January 30, 2023, we completed our public offering of 300,000 units with an aggregate stated