Nine Energy Service, Inc. Statement on U.S. District Court Decision

Rhea-AI Summary

On January 21, 2022, a jury in Texas found that Nine Energy Service infringed on a patent held by NCS Multistage Holdings, awarding damages of less than $500,000. Nine strongly disputes this verdict, claiming the patent is invalid and intends to appeal the decision. The disputed technology, the BreakThru™ Casing Flotation Device, was acquired by Nine in November 2018. CEO Ann Fox emphasized the company's commitment to defending its technology as a core part of its strategy.

Positive

• Intention to appeal the court's decision demonstrates proactive management.
• Management is confident in validating the technology's integrity.

Negative

• Jury awarded damages under $500,000 which could impact financial resources.
• Infringement verdict may adversely affect the company's reputation and market position.

HOUSTON--(BUSINESS WIRE)-- Nine Energy Service, Inc. (NYSE: NINE) (“Nine” or the “Company”) announced today that a jury in the Western District of Texas, Waco Division (the “Court”) reached a verdict on January 21, 2022 in the patent litigation regarding the Company’s BreakThru™ Casing Flotation Device and its alleged infringement of a patent held by NCS Multistage Holdings, Inc. (“NCS”). The jury found that Nine infringed on NCS’s patent and awarded NCS damages in the amount of less than $500,000.

The Company strongly disputes the merits of NCS’s case, believes that NCS’s patent is invalid and not infringed, and as such, intends to appeal the Court’s decision. Nine acquired Frac Tech and the Breakthru™ Casing Flotation Device technology in November 2018.

“We intend to vigorously pursue overturning this decision in the appellate court where it will be reviewed by subject-matter experts,” said Ann Fox, Nine’s President and Chief Executive Officer. “Technology is a crucial part of Nine’s strategy, and we will continue to protect and defend our products from these claims.”

About Nine Energy Service

Nine Energy Service is an oilfield services company that offers completion solutions within North America and abroad. The Company brings years of experience with a deep commitment to serving clients with smarter, customized solutions and world-class resources that drive efficiencies. Serving the global oil and gas industry, 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 Canada.

For more information on the Company, please visit Nine’s website at 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, such as those regarding the Company’s plan to appeal the Court’s decision, 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 Company’s ability to manage capital expenditures; the adequacy of the Company’s capital resources and liquidity; and other factors described in the “Risk Factors” and “Business” sections of the Company’s most recently filed Annual Report on Form 10-K and 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.

View source version on businesswire.com: https://www.businesswire.com/news/home/20220124005797/en/

Nine Energy Service Investor Contact:



Heather Schmidt

Vice President, Strategic Development, Investor Relations and Marketing

(281) 730-5113

investors@nineenergyservice.com

Source: Nine Energy Service, Inc.

FAQ

What was the verdict in the Nine Energy Service patent case?

On January 21, 2022, a Texas jury found Nine Energy Service liable for infringing on a patent held by NCS Multistage Holdings and awarded damages of less than $500,000.

What is Nine Energy Service's response to the jury's decision?

Nine Energy Service plans to appeal the jury's decision, strongly disputing the merits of NCS's case.

What technology is involved in the Nine Energy Service litigation?

The technology in question is the BreakThru™ Casing Flotation Device, which Nine Energy Service acquired in November 2018.

How might the court's decision affect Nine Energy Service financially?

The awarded damages of less than $500,000 could impact Nine's financial resources, although the company disputes the verdict.

What is Nine Energy Service's focus after the court verdict?

Nine Energy Service emphasizes its commitment to protecting its technology, which is a key part of its business strategy.