New Acquisition Adds Differentiated Patented Technologies to
Nine’s Portfolio
Nine Energy Service, Inc. ("Nine" or the "Company") (NYSE: NINE)
announced today that it has officially completed the acquisition of
Magnum Oil Tools International, LTD. (“Magnum”), a market-leading
downhole technology provider serving the global oil and gas industry for
over a decade. Magnum has a broad offering of proprietary downhole
completions products, including dissolvable and composite frac plugs, as
well as a number of other patented consumables.
With the acquisition completed, Magnum will provide Nine with a strong,
first-mover advantage in the dissolvable frac plug market due to its
extensive track record of successful market penetration. The new
partnership positions Nine as one of the premier providers of
completion-focused technology combined with excellence in both service
execution and conveyance capability. The addition of Magnum to Nine’s
portfolio will help operators reduce risk and cycle times as completions
continue to become more complex with longer laterals, more stages and
mega-well pads.
“We believe this deal will continue to differentiate Nine within the
industry, and Magnum’s capabilities allow us to create a more balanced
profile of completion tools,” said Ann G. Fox, Nine’s President and
Chief Executive Officer. “Ultimately, this acquisition delivers an oil
field service platform that provides customers with even better service
and aids Nine’s continued growth.”
“Magnum is excited to join Nine. This is a perfect next step, given the
standards and culture that have made Nine a leader in the industry match
so closely to our own,” said Lynn Frazier, Chief Executive Office and
founder of Magnum. “We look forward to working together to provide
customers with the best quality products and services possible while
furthering the development of Nine as an industry pioneer.”
About Nine Energy Service
Nine Energy Service is an oilfield services company that offers
completion and production solutions throughout North America. The
Company brings years of experience with a deep commitment to serving
clients with smarter, customized solutions and world-class resources
that drive efficiencies. Strategically located throughout
the U.S. and Canada, Nine continues to differentiate itself through
superior service quality, wellsite execution and cutting-edge
technology. Nine is headquartered in Houston, Texas with operating
facilities in the Permian, Eagle Ford, SCOOP/STACK, Niobrara, Barnett,
Bakken, Marcellus, Utica and throughout Canada. For more information
about Nine, visit their website at www.nineenergyservice.com.
Forward Looking Statements
The foregoing contains forward-looking statements within the meaning of
Section 27A of the Securities Act of 1933 and Section 21E of the
Securities Exchange Act of 1934. Forward-looking statements are those
that do not state historical facts and are, therefore, inherently
subject to risks and uncertainties. Forward-looking statements also
include statements that refer to or are based on projections, uncertain
events or assumptions. The forward-looking statements included herein,
including those related to the Company’s acquisition of Magnum, are
based on current expectations and entail various risks and uncertainties
that could cause actual results to differ materially from those
forward-looking statements. Such risks and uncertainties include, among
other things, the general energy service industry risks; volatility of
crude oil and natural gas commodity prices; a decline in demand for the
Company’s services, including due to declining commodity prices; the
Company’s ability to implement price increases or maintain pricing of
the Company’s core services; the loss of, or interruption or delay in
operations by, one or more significant customers; the loss of or
interruption in operations of one or more key suppliers; the adequacy of
the Company’s capital resources and liquidity; the Company’s ability to
implement new technologies and services; the incurrence of significant
costs and liabilities resulting from litigation; the loss of, or
inability to attract, key personnel; and other factors described in the
“Risk Factors” and “Business” sections of the Company’s Annual Report
on Form 10-K for the year ended December 31, 2017 and the subsequently
filed Quarterly Reports on Form 10-Q and Current Reports on Form 8-K.
Readers are cautioned not to place undue reliance on forward-looking
statements, which speak only as of the date hereof, and, except as
required by law, the Company undertakes no obligation to update those
statements or to publicly announce the results of any revisions to any
of those statements to reflect future events or developments.
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