HOUSTON--(BUSINESS WIRE)--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.