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NexTier Oilfield Solutions: Expect A Slow Pickup

Jan. 04, 2022 11:01 AM ETNexTier Oilfield Solutions Inc. (NEX)1 Comment
Badsha Chowdhury profile picture
Badsha Chowdhury


  • NEX plans to add a Tier 4 dual-fuel frac fleet in Q4 and another in Q1 2022 to enhance efficiency and reduce carbon emission.
  • Inflationary costs will keep margin under pressure in the short term.
  • In the medium term, lower fleet reactivation and efficiency-related costs will boost its operating margin.
  • Negative cash flows and a high debt-to-equity ratio can pullback the upside potential.

driller on oil field in mountains

Cristian Martin/iStock via Getty Images

NEX Can Take Some Time Before Turning Around

In the past couple of quarters, NexTier Oilfield Solutions' (NEX) customer base strengthened again. As energy activity resumes in the US, the company can better utilize its Tier IV hydraulic fracturing fleets

This article was written by

Badsha Chowdhury profile picture
I have more than 14 years of experience in analyzing and writing on stocks. I write on both long and short sides in an unbiased manner. I have been covering the energy sectors for the past 7 years, with the primary focus on the oilfield equipment services sector. I also cover the Industrial Supply industry. I occasionally co-author with Seeking Alpha contributor Thomas Prescott.

Analyst’s Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.

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Comments (1)

What is your pinion of the recent NEX forward guidance
and the market's response to the improved outlook from
the company....?

Does this new guidance allow you to think that possible
balance sheet issues regarding NEX debt levels will not
be a problem is 2022.

Lastly, who would you say is NEX most direct competitor.

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