Nine Energy Service Inc. narrowed its focus through the divestiture of its production solutions business that CEO Ann Fox said will transform Houston-based Nine into a “pure-play, asset-light completions company.”
Brigade Energy Services LLC, a Denver-based company backed by Turnbridge Capital Partners, agreed to buy Nine’s production segment for about $17 million in cash. The transaction includes Nine’s fleet of 107 workover rigs, ancillary equipment and real estate associated with the 13 operating facilities located throughout the U.S.
While the deal size won’t likely “fire folks up,” analysts with Tudor, Pickering, Holt & Co. (TPH) said they believe the transaction has multiple positive implications for Nine, which has seen its stock price plummet roughly 80% over the past year.
