Nine Energy Service, Inc. Files for Chapter 11 Bankruptcy: Key Details and Risks for Investors

HOUSTON, TX, March 4, 2026 – Nine Energy Service, Inc. (“Nine” or the “Company”) has filed its Annual Report on Form 10-K for the fiscal year ended December 31, 2025, revealing significant developments that are highly material for current and potential shareholders.

Key Highlights from the 2025 Annual Report

• Chapter 11 Bankruptcy Filing: On February 1, 2026, Nine Energy Service and its domestic and Canadian subsidiaries voluntarily filed for protection under Chapter 11 of the U.S. Bankruptcy Code. This action was taken to facilitate the implementation of a pre-arranged restructuring plan (the “Plan”). The Company is currently operating as a debtor-in-possession.
• Common Stock to be Cancelled: The proposed Plan contemplates that all existing shares of Nine’s common stock will be canceled for no consideration. This means shareholders are expected to receive no recovery for their current equity holdings.
• Trading in Shares is Highly Speculative: The Company has explicitly warned that trading in its securities, including common stock, is highly speculative during the bankruptcy proceedings. Trading prices may not reflect the actual recovery, if any, for shareholders. The Company expects that shareholders could experience a significant or complete loss on their investment.
• NYSE Delisting Process Underway: The New York Stock Exchange (“NYSE”) has already filed a Form 25 to delist Nine’s common stock. The delisting will become effective 90 days after the filing, or sooner if determined by the SEC. After delisting, shares will no longer be traded on the NYSE.
• No Recovery for Equity Holders: Nine has a substantial amount of indebtedness that is senior to the common stock. As the Plan prioritizes the repayment of secured and unsecured creditors (who themselves are not expected to be made whole), the Company makes clear that common equity holders will receive nothing unless all senior claims are paid in full — which is not expected to occur.

Other Critical Risks and Information for Shareholders

• Uncertainty Around Restructuring: The outcome of the Chapter 11 Cases is uncertain. Risks include the possibility that the Plan is not consummated, or that the Restructuring Support Agreement is terminated, which could result in even less favorable outcomes for stakeholders.
• Management Distraction and Attrition: The bankruptcy process and restructuring negotiations are consuming significant management attention and could lead to increased employee turnover, which may affect ongoing operations.
• Liquidity and Capital Constraints: The Company faces extreme uncertainty regarding its liquidity and capital resources, both during and after Chapter 11. The ability to secure necessary financing post-emergence is not guaranteed.
• Debt Structure Changes: The post-bankruptcy capital structure will change significantly, with new debt and equity securities to be issued. Existing equity will be canceled. There is no assurance that new securities will hold value after issuance.
• Business Risks: Nine’s business remains exposed to cyclical energy industry trends, customer concentration risks, and competitive pressures. The bankruptcy process adds further uncertainty to customer, vendor, and employee relationships.
• Fresh Start Accounting: Upon emergence from bankruptcy, Nine is expected to adopt fresh start accounting, which will result in significant changes to its balance sheet and may make future financial statements not comparable to historical results.

Summary for Investors

Shareholders should be aware that, under the current Plan, their shares will be canceled for no compensation. The Company expects its common stock to be worthless as a result of the Chapter 11 process. Trading in Nine’s shares is highly speculative and is likely to result in a total loss.

The bankruptcy process is ongoing, and the final outcome for creditors and other stakeholders will depend on the Bankruptcy Court’s approval and the Company’s ability to implement the restructuring plan. However, unless there is a dramatic improvement in the Company’s financial position or a change in circumstances, the outlook for common equity holders is extremely negative.

Potential Share Price Impact

• Delisting from the NYSE and the expectation that shares will be canceled for no consideration are both highly negative and price-sensitive events, likely to drive the share price to zero.
• Investors should exercise extreme caution and consider that any investment in Nine’s common stock is likely to result in a total loss.

Disclaimer

This article is for informational purposes only and does not constitute investment advice. The situation regarding Nine Energy Service, Inc. is fluid and subject to change based on ongoing bankruptcy proceedings and court decisions. Investors are strongly encouraged to review all SEC filings and consult professional advisors before making any investment decisions in connection with Nine Energy Service, Inc.

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