NexTier Oilfield Solutions Inc.

Second quarter revenue was $945 million, up 1% sequentially from $936 million and 12% year over year. Adjusted net income was $158 million, or $0.68 per diluted share, and adjusted EBITDA was $234 million, up from $228 million last quarter and 41% higher than Q2 2022. Completion services revenue was $906 million, well construction and intervention revenue was $40 million, and completion services gross profit was $260 million. Free cash flow was $128 million, though it was reduced by a $37 million final Alamo earn-out payment. Cash was $310 million, total liquidity was $721 million, total debt was $355 million, and net debt was approximately $44 million. For Q3, management said deployed fleet count could fall by as many as three fleets, capex is expected to be roughly $85 million, and free cash flow should remain strong; they also said they expect to exceed their target of zero net debt by the end of Q3.

Robert Drummond framed Q2 as another strong quarter and emphasized that NexTier’s wellsite integration strategy is working across the cycle. He highlighted resilient active fleet levels, strong customer retention, and the company’s ability to choose stacking or redistribution rather than chase sub-threshold pricing if demand weakens. His tone was confident on the long-term outlook, repeatedly pointing to a 2024 recovery, tighter frac supply, and the strategic value of the Patterson merger.

Kenny Pucheu focused on the sequential improvement in revenue, EBITDA, and cash generation. He said Q2 revenue was $945 million, adjusted net income was $158 million, adjusted EBITDA was $234 million, and adjusted EBITDA margins improved for the ninth consecutive quarter; completion services gross profit rose to $260 million while SG&A was $40 million, or $31 million adjusted. On the balance sheet, he cited $310 million of cash, $721 million of liquidity, $355 million of debt, and net debt of about $44 million, then guided to roughly $85 million of Q3 capex and said free cash flow should stay strong.

Analysts focused on 2024 activity, possible Q4 seasonality, pricing resets, and merger integration. Management said Q4 could either follow a normal holiday slowdown or turn into a “running start” for 2024, and they leaned toward the latter, saying customer conversations already include plans for next year. On pricing, they rejected the idea of a wholesale reset, arguing that improved fleet quality, natural gas fuel economics, integrated services, and the need to earn a return on prior fleet investments should support pricing discipline. On the merger, management said integration planning is early but on track, the $200 million synergy target remains intact, and the combined company will be focused on not disrupting the current drilling and completion businesses.