Stonegate Initiates Coverage on Nine Energy Services, Highlighting Post-Bankruptcy Transition

Stonegate Capital Partners has initiated coverage on Nine Energy Services, Inc. (NYSEAM: NINE), marking the company's first-quarter 2026 earnings report as a crucial transition period following its emergence from Chapter 11 bankruptcy. The research note emphasizes that while GAAP comparability was limited due to fresh-start accounting, the underlying commercial dynamics suggest a stable foundation for future growth.

According to Stonegate, Nine Energy Services' 1Q26 results were burdened by severe January and February weather conditions, as well as a $5.5 million non-cash inventory write-down that management did not add back to adjusted EBITDA. Despite these headwinds, the company reported no material customer or vendor losses, and pricing across its technology and service offerings remained mostly unchanged quarter-over-quarter. Stonegate analysts highlighted that stable pricing is particularly significant for an oilfield services (OFS) company exiting restructuring, as it indicates that margin pressure in the first quarter was driven by utilization disruption and timing rather than customer concessions or competitive share loss.

"2Q guidance is the cleaner benchmark for post-emergence earnings power," the report states, noting that the first quarter was distorted by non-recurring items. The read-through from the quarter was positive, with service-line pricing largely stable versus 2025 exit rates. Stonegate views commercial stability as a critical indicator, suggesting that the restructuring process did not impair Nine Energy Services' market relevance.

Looking ahead, Stonegate identifies upside potential tied to normalization and mix improvements rather than a broad activity recovery. The company's exposure to gas basins, its completion tools segment, and international growth are cited as the clearest levers for EBITDA expansion. The full announcement, including downloadable images and bios, is available here.

Stonegate Capital Partners is a capital markets advisory firm that provides investor relations, equity research, and institutional investor outreach services for public companies. Its affiliate, Stonegate Capital Markets (member FINRA), offers investment banking, equity research, and capital raising services. For more information, visit Stonegate's website.

The initiation of coverage by Stonegate underscores a renewed focus on Nine Energy Services as it navigates its post-bankruptcy landscape, with analysts closely monitoring the company's ability to leverage its stabilized pricing and customer relationships to drive future earnings growth.