Nine Energy Service Inc., a leading oilfield services company specializing in completion solutions within North America and abroad, has opened its new 348,000-sq. ft. cementing facility in Longview, Texas on Nov. 10. The facility is expected to be fully operational by the end of November and is the first expansion of Nine’s cementing service line in the Haynesville Basin.
The new cementing facility, which will operate from 9674 TX-149, Longview, TX 75603, and will feature a state-of-the-art laboratory to create and test a broad range of cutting-edge cement slurries, as well as a bulk plant to house additives and other raw materials for storage and distribution.
The opening of the new facility demonstrates Nine’s ability to recognize and capitalize on opportunities that better position the company operationally, as well as its confidence in the near and long-term profitability outlook of the Haynesville basin, even in the face of today’s challenging environment.
The Nine team was able to execute this expansion with minimal capital outlay and the company’s previous annual 2020 capex guidance of approximately $10 to $15 million remains unchanged. The company will utilize current and newly delivered cementing spreads and components from its current operations to facilitate the majority of the project. Nine anticipates generating some revenue from its Longview location in the interim period from its opening in November through the end of 2020 and anticipates a more significant contribution starting in the first quarter of 2021.
“We identified the Haynesville as a strategic priority for adding size and scale to our existing cementing operations,” Ann Fox, president and CEO, Nine Energy Service, said. “Cementing is a technically challenging service line with high barriers to entry within our industry and a relatively consolidated competitive landscape. Our team has continued to gain market share within other basins and we have confidence that with this expansion into the Haynesville, we will win market share and drive revenue growth.”
District Manager Louis Bone will oversee operations and personnel serving the Longview cementing facility. Bone is a 24-year veteran of the oilfield services and cementing industries with experience in both domestic, international and offshore cementing operations.
Since 2012, Nine’s cementing business line has serviced customers across the southeast region. The company’s new operations in Longview, Texas will add to the list of Nine's other locations dedicated to cementing, which include Jacksboro, Texas; Pleasanton, Texas; Sweetwater, Texas, and Hobbs, New Mexico.
With headquarters in Houston, Texas, Nine operates facilities in the Permian, Eagle Ford, Scoop/Stack, Niobrara, Barnett, Bakken, Marcellus, Utica, and Canada.
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