From Expansion to Overleveraged
Nine Energy provides services critical to drilling and completing oil and gas wells — the behind-the-scenes engineering that turns boreholes into producing assets.
But in its filings, the company said debt incurred to finance a 2018 acquisition left it heavily leveraged. The financial strain was compounded by the collapse in oil demand during the COVID-19 pandemic and ongoing volatility in global energy markets.
Like many service providers tethered to the cyclical rhythms of oil prices, Nine Energy found itself squeezed when consumption fell and capital spending tightened.
Advisors and Legal Counsel
To navigate the restructuring, Nine Energy has retained Moelis & Co. as its investment banker and FTI Consulting as financial adviser.
The company is represented by John J. Kane, Kyle Woodard, JaKayla J. DaBera and Michael P. Ridulfo of Kane Russell Coleman Logan PC, along with Chad J. Husnick and Ross J. Fiedler of Kirkland & Ellis LLP.
The Chapter 11 filing positions Nine Energy to attempt a rapid reorganization under court supervision, trimming liabilities while preserving operations.
With Nine Energy filed for Chapter 11, the company now begins the delicate process of reshaping its capital structure — an effort to convert financial strain into a fresh start in an energy market still defined by unpredictability.
