Oilfield service company NexTier Oilfield Solutions, Inc. (NEX) has provided guidance for the fourth quarter of 2021. It expects total revenue to range from $500 million to $510 million, up 25% quarter-over-quarter.
Adjusted EBITDA is anticipated to lie between $75 million and $80 million, and the company expects to end the quarter with 31 deployed fleets.
Following the announcement, after the market closed on Monday, NEX stock gained 2.1% to end the day at $3.95.
The President and CEO of NexTier, Robert Drummond, said, “The strong momentum we experienced when exiting the third quarter continued through year-end. The expected sequential gains resulted from solid growth across the entire NexTier enterprise, enhanced by the inclusion of a full quarter of Alamo contribution versus just one month in Q3 2021. Further, market indicators suggest that the pace of market recovery is increasing and fracturing service supply is rapidly tightening.”
Kenny Pucheu, the Executive Vice-President and CFO of NexTier, said, “NexTier is beginning to experience the benefits from our counter-cyclical investment strategy, with the guidance revealing signs of strong, profitable growth as we exited 2021. Despite typical holiday seasonality, our Q4 2021 guidance suggests a step change in profitability per active fracturing fleet relative to Q3 2021 and we anticipate further gains throughout 2022.”
About NexTier
Headquartered in Texas, NexTier offers completion solutions, hydraulic fracturing, wireline, pump down, coiled tubing, cementing, rig services, special services, and fluids management services.
Overall, the stock has a Strong Buy consensus rating based on 3 Buys and 1 Hold. The average NEX price target of $6.38 implies 65% upside potential. Shares have lost 17.7% over the past six months.
Hedge Fund Confidence
TipRanks’ Hedge Fund Trading Activity tool shows that confidence in NexTier is currently Very Positive, as the cumulative change in holdings across all five hedge funds that were active in the last quarter was an increase of 2.8 million shares.
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