đąïžNew Chapter 11 Bankruptcy Filing - Nine Energy Service Inc. ($NINE)đąïž
Oilfield services company files prepack to equitize $300+mm of senior secured notes.
It appears the millennials and Gen Zers were right when they declared that â26 is the new â16 a few weeks ago because, just like â16, oilfield services are in bankruptcy, baby!
On February 1, 2026, Houston-based Nine Energy Service Inc. ($NINE) and nine affiliates (collectively, the âdebtorsâ) filed prepackaged chapter 11 bankruptcy cases in the Southern District of Texas (Judge Lopez).
We wonât spend too much time on these debtors because (a) anyone who was alive in â16 remembers what these OFS companies are all about, and (b) itâs a simple cap stack with a prepackaged plan (small âpâ and large âPâ) thatâs about as clean as they come. We will highlight, however, that the debtors say they were hindered by their âoverleveragedâ capital structure âŠ
⊠and attendant high interest expense costs âŠ
⊠and inability to reinvest in the business and compete (read: make acquisitions!). The fact that the oil and gas industry ââŠcontinues to experience challenging macroeconomic conditions, as major oil indexes suffer persistent pricing declines, leading many [Exploration & Production] companies to reduce their drilling completion programs,â didnât help, especially when you recognize that the debtorsâ ââŠfinancial success is highly predicated on active drilling rigs and fracturing fleets.â Interestingly, the debtorsâ management doesnât foresee any radical changes for â26 so it figured it might as well tackle that suffocating debt rather than crawl through yet another year of struggle. The market seemed to validate this approach:
And so there were talks.