Oilfield services firm Nine Energy Service announced on February 1 that it had filed for Chapter 11 bankruptcy protection. The filing, in the US Bankruptcy Court for the Southern District of Texas, was described as voluntary and prepackaged.

The filing comes against the backdrop of an increasingly challenging environment for oilfield services providers. Oil and gas industry consolidation in recent years – especially among shale producers – has resulted in a reduced number of companies requiring oilfield services. On top of this, producers have been restrained in their capital expenditures on new drilling amid weakening crude prices.

This has taken its toll on the oilfield services sector and on companies such as Nine, which specialises in onshore completions for the unconventional oil and gas industry. However, the company described its bankruptcy filing as a “comprehensive recapitalisation transaction designed to strengthen its capital structure” and support its “long-term financial health”.

Through the restructuring process, Nine anticipates eliminating roughly $320mn of senior secured notes, which it said would reduce its interest expense by roughly $40mn per year. The company said it would continue operating as usual throughout the court‑supervised process and that delivery of services to its customers would not be interrupted.

“Today, we are taking an important strategic step to position the business for long-term success and ensure we have the appropriate capital structure to support us going forward," stated Nine’s president and CEO, Ann Fox. "We are confident that entering into this agreement will enable us to stay focused on what matters most – supplying the teams, the tools and the technology to ensure success for our customers, safely and efficiently.”

According to Nine’s third-quarter presentation for 2025, the company’s customers include ExxonMobil, ConocoPhillips, EOG Resources and Continental Resources, among others. The company operates across numerous shale plays including the Permian Basin, Eagle Ford and Haynesville, as well as in the Appalachian, Williston and Denver-Julesburg (DJ) basins. It also has operations in Canada.

Bloomberg reported this week that Nine went public in 2018, raising about $170mn at the time. However, regulators notified the company in 2024 that it no longer met listing standards.

Nine said it had received a commitment for $125mn in debtor-in-possession financing from its existing asset-based lender (ABL) to support the business throughout the Chapter 11 process. In addition, the lender has committed to providing an exit ABL facility of $135mn upon emergence from Chapter 11, the company said.

Nine expects to complete the restructuring process and emerge from Chapter 11 within 45 days.