Nuverra Announces First Quarter 2021 Results
Nuverra Environmental Solutions reported a 38% decline in revenue for Q1 2021, totaling $23.7 million compared to $37.9 million in Q1 2020. The net loss narrowed to $7.6 million from $23.0 million. Adjusted EBITDA also fell, posting a loss of $0.8 million. Revenue decreases were driven by lower water transport and disposal services, with a significant decrease in rig counts across divisions. Total liquidity as of March 31, 2021, was $15.6 million, including $10.6 million in cash and $5.0 million available under the credit line.
- Narrowed net loss from $23.0 million in Q1 2020 to $7.6 million in Q1 2021.
- Total costs decreased by 31% from $60.0 million in Q1 2020 to $30.6 million in Q1 2021.
- Total liquidity increased to $15.6 million, improving cash flow status.
- Revenue decreased by 38% year-over-year, driven by lower water transport services.
- Adjusted EBITDA declined 140.7% from a profit of $1.9 million in Q1 2020 to a loss of $0.8 million.
- Rig counts dropped significantly, with Rocky Mountain division experiencing a 77% decline.
Nuverra Environmental Solutions, Inc. (NYSE American: NES) (“Nuverra” or the “Company”) today announced financial and operating results for the first quarter ended March 31, 2021.
SUMMARY OF FINANCIAL RESULTS
-
Revenue for the first quarter of 2021 was
$23.7 million compared to$37.9 million for the first quarter of 2020. -
Net loss for the first quarter of 2021 was
$7.6 million compared to a net loss of$23.0 million for the first quarter of 2020, primarily as a result of$15.6 million of long-lived asset impairment charges in 2020. -
Adjusted EBITDA for the first quarter of 2021 was a loss of
$0.8 million compared to a profit of$1.9 million for the first quarter of 2020, driven by activity declines year over year partially offset by meaningful fixed and variable cost reductions. -
During the three months ended March 31, 2021, the Company generated net cash used in operating activities of
$0.8 million . -
Total liquidity available as of March 31, 2021 was
$15.6 million including$5.0 million available under the Company’s undrawn operating line of credit. -
Principal payments on debt and finance lease payments during the three months ended March 31, 2021 totaled
$0.8 million . -
The Company invested
$0.6 million in gross capital expenditures during the first quarter of 2021.
FIRST QUARTER 2021 RESULTS
For the first quarter of 2021 when compared to the first quarter of 2020, revenue decreased by
The Rocky Mountain division experienced a significant slowdown as compared to the prior year, as evidenced by the rig count declining
Revenues for the Northeast division decreased by
The Southern division experienced the lowest revenue decline relative to the other business units, driven by its focus on servicing customers who are themselves focused on dry natural gas, which has experienced a relatively smaller impact from the 2020 downturn in commodity prices. Revenues for the Southern division decreased by
Total costs and expenses for the first quarter of 2021 and 2020 were
Net loss for the first quarter of 2021 was
Adjusted EBITDA for the first quarter of 2021 was a
CASH FLOW AND LIQUIDITY
Net cash used in operating activities for the three months ended March 31, 2021 was
Total liquidity available as of March 31, 2021 was
About Nuverra
Nuverra Environmental Solutions, Inc. provides water logistics and oilfield services to customers focused on the development and ongoing production of oil and natural gas from shale formations in the United States. Our services include the delivery, collection, and disposal of solid and liquid materials that are used in and generated by the drilling, completion, and ongoing production of shale oil and natural gas. We provide a suite of solutions to customers who demand safety, environmental compliance and accountability from their service providers. Find additional information about Nuverra in documents filed with the U.S. Securities and Exchange Commission (“SEC”) at http://www.sec.gov.
Forward-Looking Statements
This press release contains forward-looking statements within the meaning of Section 27A of the United States Securities Act of 1933, as amended, and Section 21E of the United States Securities Exchange Act of 1934, as amended. You can identify these and other forward-looking statements by the use of words such as “anticipates,” “expects,” “intends,” “plans,” “predicts,” “believes,” “seeks,” “estimates,” “may,” “might,” “will,” “should,” “would,” “could,” “potential,” “future,” “continue,” “ongoing,” “forecast,” “project,” “target” or similar expressions, and variations or negatives of these words.
These statements relate to our expectations for future events and time periods. All statements other than statements of historical fact are statements that could be deemed to be forward-looking statements, and any forward-looking statements contained herein are based on information available to us as of the date of this press release and our current expectations, forecasts and assumptions, and involve a number of risks and uncertainties. Accordingly, forward-looking statements should not be relied upon as representing our views as of any subsequent date. Future performance cannot be ensured, and actual results may differ materially from those in the forward-looking statements. Some factors that could cause actual results to differ include, among others: the severity, magnitude and duration of the coronavirus disease 2019 ("COVID-19") pandemic and commodity market disruptions; changes in commodity prices; fluctuations in consumer trends, pricing pressures, transportation costs, changes in raw material or labor prices or rates related to our business and changing regulations or political developments in the markets in which we operate; risks associated with our indebtedness, including changes to interest rates, decreases in our borrowing availability, our ability to manage our liquidity needs and to comply with covenants under our credit facilities, including as a result of COVID-19 and oil price declines; the loss of one or more of our larger customers; delays in customer payment of outstanding receivables and customer bankruptcies; natural disasters, such as hurricanes, earthquakes and floods, pandemics (including COVID-19), acts of terrorism, or extreme weather conditions, that may impact our business locations, assets, including wells or pipelines, or distribution channels, or which otherwise disrupt our customers' operations or the markets we serve; disruptions impacting crude oil and natural gas transportation, processing, refining, and export systems, including vacated easements, environmental impact studies, forced shutdown by governmental agencies and litigation affecting the Dakota Access Pipeline; bans on drilling and fracking leases and permits on federal land; our ability to attract and retain key executives and qualified employees in strategic areas of our business; our ability to attract and retain a sufficient number of qualified truck drivers; the unfavorable change to credit and payment terms due to changes in industry condition or our financial condition, which could constrain our liquidity and reduce availability under our operating line of credit; higher than forecasted capital expenditures to maintain and repair our fleet of trucks, tanks, pipeline, equipment and disposal wells; our ability to control costs and expenses; changes in customer drilling, completion and production activities, operating methods and capital expenditure plans, including impacts due to low oil and/or natural gas prices, shut-in production, decline in operating drilling rigs, closures or pending closures of third-party pipelines or the economic or regulatory environment; risks associated with the limited trading volume of our common stock on the NYSE American Stock Exchange, including potential fluctuation in the trading prices of our common stock; risks and uncertainties associated with the potential for a further appeal of the order confirming our previously completed plan of reorganization; risks associated with the reliance on third-party analyst and expert market projections and data for the markets in which we operate that is utilized in our business strategy; present and possible future claims, litigation or enforcement actions or investigations; risks associated with changes in industry practices and operational technologies; risks associated with the operation, construction, development and closure of salt water disposal wells, solids and liquids transportation assets, landfills and pipelines, including access to additional locations and rights-of-way, permitting and licensing, environmental remediation obligations, unscheduled delays or inefficiencies and reductions in volume due to micro- and macro-economic factors or the availability of less expensive alternatives; the effects of competition in the markets in which we operate, including the adverse impact of competitive product announcements or new entrants into our markets and transfers of resources by competitors into our markets; changes in economic conditions in the markets in which we operate or in the world generally, including as a result of political uncertainty; reduced demand for our services due to regulatory or other influences related to extraction methods such as hydraulic fracturing, shifts in production among shale areas in which we operate or into shale areas in which we do not currently have operations, and shifts to reuse of water and water sharing in completion activities; the unknown future impact of changes in laws and regulation on waste management and disposal activities, including those impacting the delivery, storage, collection, transportation, and disposal of waste products, as well as the use or reuse of recycled or treated products or byproducts; and risks involving developments in environmental or other governmental laws and regulations in the markets in which we operate and our ability to effectively respond to those developments including laws and regulations relating to oil and natural gas extraction businesses, particularly relating to water usage, and the disposal and transportation of liquid and solid wastes.
The forward-looking statements contained, or incorporated by reference, herein are also subject generally to other risks and uncertainties that are described from time to time in the Company’s filings with the SEC. Readers are cautioned not to place undue reliance on these forward-looking statements, which reflect management’s views as of the date of this press release. The Company undertakes no obligation to update any such forward-looking statements, whether as a result of new information, future events, changes in expectations or otherwise. Additional risks and uncertainties are disclosed from time to time in the Company’s filings with the SEC, including our Annual Reports on Form 10-K, Quarterly Reports on Form 10-Q, and Current Reports on Form 8-K.
NUVERRA ENVIRONMENTAL SOLUTIONS, INC. AND SUBSIDIARIES |
|||||||||
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS |
|||||||||
(In thousands, except per share amounts) |
|||||||||
(Unaudited) |
|||||||||
|
Three Months Ended |
||||||||
|
March 31, |
||||||||
|
2021 |
|
|
2020 |
|
||||
Revenue: |
|
|
|
||||||
Service revenue |
$ |
22,326 |
|
|
|
$ |
34,471 |
|
|
Rental revenue |
1,339 |
|
|
|
3,471 |
|
|
||
Total revenue |
23,665 |
|
|
|
37,942 |
|
|
||
Costs and expenses: |
|
|
|
||||||
Direct operating expenses |
20,981 |
|
|
|
31,476 |
|
|
||
General and administrative expenses |
3,527 |
|
|
|
4,924 |
|
|
||
Depreciation and amortization |
6,070 |
|
|
|
7,989 |
|
|
||
Impairment of long-lived assets |
— |
|
|
|
15,579 |
|
|
||
Other, net |
— |
|
|
|
— |
|
|
||
Total costs and expenses |
30,578 |
|
|
|
59,968 |
|
|
||
Operating loss |
(6,913 |
) |
|
|
(22,026 |
) |
|
||
Interest expense, net |
(678 |
) |
|
|
(1,160 |
) |
|
||
Other income (expense), net |
(4 |
) |
|
|
142 |
|
|
||
Reorganization items, net |
(8 |
) |
|
|
— |
|
|
||
Loss before income taxes |
(7,603 |
) |
|
|
(23,044 |
) |
|
||
Income tax expense |
— |
|
|
|
— |
|
|
||
Net loss |
$ |
(7,603 |
) |
|
|
$ |
(23,044 |
) |
|
|
|
|
|
||||||
Loss per common share: |
|
|
|
||||||
Net loss per basic common share |
$ |
(0.48 |
) |
|
|
$ |
(1.46 |
) |
|
|
|
|
|
||||||
Net loss per diluted common share |
$ |
(0.48 |
) |
|
|
$ |
(1.46 |
) |
|
|
|
|
|
||||||
Weighted average shares outstanding: |
|
|
|
||||||
Basic |
15,877 |
|
|
|
15,754 |
|
|
||
Diluted |
15,877 |
|
|
|
15,754 |
|
|
||
NUVERRA ENVIRONMENTAL SOLUTIONS, INC. AND SUBSIDIARIES |
|||||||||
CONDENSED CONSOLIDATED BALANCE SHEETS |
|||||||||
(In thousands) |
|||||||||
(Unaudited) |
|||||||||
|
March 31, |
|
December 31, |
||||||
|
2021 |
|
|
2020 |
|
||||
Assets |
|
|
|
||||||
Cash and cash equivalents |
$ |
10,578 |
|
|
|
$ |
12,880 |
|
|
Restricted cash |
2,990 |
|
|
|
2,820 |
|
|
||
Accounts receivable, net |
16,788 |
|
|
|
15,427 |
|
|
||
Inventories |
2,893 |
|
|
|
2,852 |
|
|
||
Prepaid expenses and other receivables |
2,438 |
|
|
|
3,119 |
|
|
||
Other current assets |
— |
|
|
|
— |
|
|
||
Assets held for sale |
778 |
|
|
|
778 |
|
|
||
Total current assets |
36,465 |
|
|
|
37,876 |
|
|
||
Property, plant and equipment, net |
145,654 |
|
|
|
151,164 |
|
|
||
Operating lease assets |
1,609 |
|
|
|
1,691 |
|
|
||
Equity investments |
— |
|
|
|
35 |
|
|
||
Intangibles, net |
182 |
|
|
|
194 |
|
|
||
Other assets |
88 |
|
|
|
106 |
|
|
||
Total assets |
$ |
183,998 |
|
|
|
$ |
191,066 |
|
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FAQ
What were Nuverra's Q1 2021 revenue figures and how do they compare to Q1 2020?
Nuverra reported Q1 2021 revenue of $23.7 million, a 38% decrease from $37.9 million in Q1 2020.
What is the net loss reported by Nuverra for Q1 2021?
Nuverra reported a net loss of $7.6 million for Q1 2021, compared to a net loss of $23 million in Q1 2020.
How did Nuverra's adjusted EBITDA perform in Q1 2021?
In Q1 2021, Nuverra's adjusted EBITDA was a loss of $0.8 million, down from a profit of $1.9 million in Q1 2020.
What was the liquidity status of Nuverra as of March 31, 2021?
Nuverra had total liquidity of $15.6 million as of March 31, 2021, including $10.6 million in cash.
What factors contributed to the decline in revenue for Nuverra in Q1 2021?
The decline was primarily due to lower demand for water transport services and a significant reduction in rig counts across divisions.
NES
NYSE:NESNES RankingsNES Latest NewsAug 19, 2021
Nuverra Announces Second Quarter 2021 Results
NES Stock Data
2.09M
18.72%
Crude Petroleum and Natural Gas Extraction
Mining, Quarrying, and Oil and Gas Extraction
US
Scottsdale
|