Nine Energy Services (NYSE: NINE) reported Q2 EPS of ($1.13), $0.13 worse than the analyst estimate of ($1.00). Revenue for the quarter came in at $52.74 million versus the consensus estimate of $60.55 million.

• As of June 30, 2020, cash and cash equivalents of $88.7 million
• Revenue, net loss and adjusted EBITDAA of $52.7 million, $(24.2) million and $(11.0) million, respectively, for the second quarter of 2020
• Second quarter basic EPS of $(0.81)

“In response to the extreme reduction in demand related to the COVID-19 pandemic, North American operators significantly cut capex, either reducing or completely suspending activity during the quarter,” said Ann Fox, President and Chief Executive Officer, Nine Energy Service. “These reductions were most evident in the Permian Basin where total completions have declined by approximately 77% in June from the 2020 high in February. Activity reductions affected revenue and profitability across service lines, but with what we know today, we believe that we are at or near the trough from an activity perspective.”

“The preservation of cash and debt service remains our top priority. Because of our high variable cost and the asset-light make-up of Nine, we were able to quickly implement cost-cutting measures and will continue to adapt as the market dictates. Our focus on working capital management has resulted in a strong cash balance of $88.7 million as of June 30, 2020, as well as an undrawn revolver.”

“Our team continues to gain ground with the commercialization of our dissolvable plugs, receiving incremental trials with new customers and expanding market share with current customers despite the extremely difficult environment. The tool continues to perform very well, allowing us to maintain some momentum into this downturn. While the near-term outlook is very challenging, we believe that our technological innovations position us to thrive when activity recovers.”

For earnings history and earnings-related data on Nine Energy Services (NINE) click here.