Stonegate Capital Partners Initiates Coverage on Nine Energy Services, Highlighting Post-Bankruptcy Transition
Stonegate Capital Partners initiated coverage on Nine Energy Services, noting the company's emergence from bankruptcy and positive commercial stability as key indicators of its market relevance, with upside tied to normalization and mix rather than broad activity recovery.
Stonegate Capital Partners has initiated coverage on Nine Energy Services, Inc. (NYSEAM: NINE), marking a significant milestone as the company navigates its post-bankruptcy landscape. In a research note released on May 18, 2026, Stonegate highlighted that NINE's first-quarter 2026 results represented a pivotal transition quarter, as the company emerged from Chapter 11 and reset its financial foundation. The report underscores the importance of this development for investors monitoring the oilfield services sector, as it provides a clearer picture of the company's earnings power going forward.
Stonegate's analysis points out that GAAP comparability in the first quarter was limited by Chapter 11 emergence and fresh-start accounting. Adjusted EBITDA was further burdened by severe January and February weather, as well as a $5.5 million non-cash inventory write-down that management did not add back. Despite these distortions, the read-through was positive. Management reported no material customer or vendor losses, and pricing across technology and service offerings remained mostly unchanged quarter-over-quarter, with service-line pricing largely stable versus 2025 exit rates. For an oilfield services company exiting restructuring, stable pricing is a critical indicator, as it suggests that first-quarter margin pressure was driven by utilization disruption and timing rather than customer concessions or competitive share loss.
The report identifies second-quarter guidance as a cleaner benchmark for post-emergence earnings power, given that the first quarter was distorted by fresh-start accounting, weather, and the inventory write-down. Stonegate emphasizes that commercial stability was a key indicator, as the lack of material customer or vendor losses and stable pricing suggest that the restructuring did not impair the company's market relevance. Looking ahead, upside for NINE is more tied to normalization and mix than to a broad activity recovery. The company's gas-basin exposure, completion tools, and international growth provide the clearest EBITDA levers, according to Stonegate.
This initiation of coverage comes at a time when investors are closely watching companies that have undergone restructuring to assess their long-term viability and growth potential. For more details, the full announcement is available here. Stonegate Capital Partners is a leading capital markets advisory firm providing investor relations, equity research, and institutional investor outreach services for public companies. Its affiliate, Stonegate Capital Markets (member FINRA), offers a full spectrum of investment banking, equity research, and capital raising for public and private companies.