It seems that the third fiscal quarter financial results that were announced by Nine Energy Service Inc (NYSE:NINE) on Wednesday came as a source of optimism for investors.
Trading Data
On Thursday, NINE stock surged 6.25% at $1.8700 with more than 271.46K shares, compared to its average volume of 249.67K shares. The stock has moved within a range of $1.7500 – 1.8800 after opening the trade at $1.8300.
Earnings Recap
On Thursday, the Nine Energy stock was on the move and ended the day with gains of as much as 6%. It is likely that the stock is going to be back on focus among investors again and hence, it could be a good move to take a look at the financial results. The company announced that it generated revenues of as much as $92.9 million in the quarter to go along with a net loss of $16.1 million. The net loss actually worked out to a loss per share of $0.53.
The adjusted loss for the period stood at $15.7 million and that worked out to losses of $0.51 a share. In this regard, it should be noted that the revenue projections for the quarter from Nine Energy had been in the range of $95 million and $103 million. Although Nine Energy fell short, the revenue figure still represented a jump of as much as 9% from the previous quarter and that is a significant development.
Key Quote:
“Sequential revenue increases this quarter of approximately 9% outpaced EIA US completions, which increased approximately 6% over the same time period, but was less than what we anticipated due mostly to labor constraints in the Permian Basin,” said Ann Fox, President and Chief Executive Officer, Nine Energy Service. “Because of our inability to field labor, we were unable to complete all anticipated wireline jobs in the region. By the end of the quarter, we were able to fill most of our labor needs for our Permian wireline operations but do anticipate labor shortages will continue to be a significant challenge for Nine and the collective OFS industry moving forward.”
Technical Data
NINE stock is trading below the 20-Day and 50-Day Moving averages of $1.97 and $2 respectively. Moreover, the stock is trading below 200-Day moving average of $2.42. The stock is up 10% in the past month.
Allied Energy Corp. (OTCMKTS:AGYP): On a more speculative note, AGYP deserve a look from oil and gas investors as they have recently announced signing a new lease and also struck oil on their leased well sites located in Texas. Global energy prices are at 7 year highs. With the need for more domestic energy growing apparent, AGYP and its US based exploration projects may benefit. AGYP issued news Thursday that they have achieved production on the #1, #2, and #5 wells of the Gilmer Lease in Texas.
