#United States #Houston #Oilfield Services #recapitalization #Nine Energy Service

Nine Energy Service Restructures to Ensure Future Viability

In a significant move aimed at securing its future, Nine Energy Service, Inc., a prominent provider of completion solutions in the oil and gas sector, has unveiled a strategic initiative to revamp its financial structure. On February 1, 2026, the company announced it had finalized an agreement with its creditors, setting the stage for a comprehensive recapitalization designed to bolster its financial health moving forward.

The company has opted to pursue a voluntary, pre-packaged Chapter 11 bankruptcy filing in the U.S. Bankruptcy Court for the Southern District of Texas. This process, which is anticipated to be completed within 45 days, does not encompass the company's operations outside of the U.S. and Canada. By undertaking this restructuring, Nine aims to eradicate approximately $320 million in high-interest secured notes, significantly reducing its annual financial obligations by about $40 million.

President and CEO Ann Fox emphasized that this restructuring is a crucial step towards ensuring the company's long-term success. In her statement, she noted, "Since our founding, we have consistently risen to meet the challenges of an ever-changing industry and support our oil and gas partners in North America and abroad. This strategy will enable us to focus on providing our customers with the tools and technologies needed for successful operations."

Throughout the restructuring process, Nine plans to continue its operations without interruption, maintaining its commitment to delivering innovative solutions to its clients. The company has secured $125 million in new financing to support ongoing activities during the restructuring phase. All vendors are expected to be paid in full, ensuring that the operational aspects remain intact and efficient.

In preparation for the Chapter 11 petition, Nine Energy took proactive steps by engaging with its stakeholders, gathering votes in favor of its restructuring plan. The company has established a framework that will allow it to facilitate normal business operations, ensuring employees will be compensated, and benefits will continue unaffected.

The restructuring initiative is framed within a broader commitment by Nine Energy to enhance its capacity to navigate the complexities of the oil and gas industry. The company's operational strategies focus on performance optimization and the adoption of forward-thinking technologies that optimize resource extraction and reduce emissions.

With headquarters in Houston, Texas, Nine Energy Service has established its presence across major oil and gas production regions in North America. As it embarks on this restructuring journey, Nine aims to emerge as a stronger entity that not only meets but exceeds industry expectations for both safety and efficiency.

In light of these developments, stakeholders can stay informed by accessing Nine Energy's dedicated microsite, which provides continuous updates on the restructuring process and its implications. The ongoing commitment to transparency and operational excellence is expected to garner continued support from clients and stakeholders alike.

As Nine Energy navigates the Chapter 11 process, the organization remains dedicated to its mission of delivering tailored solutions that cater to the evolving needs of the oil and gas sector, reinforcing its position as a leader in the industry.