NINE

This is not a valuation call; it is a capital-structure fact. The 10-K states plainly that Nine Energy filed Chapter 11 on February 1, 2026, and that under the prepackaged Plan the 2028 Notes convert into 100% of the reorganized equity while 'our currently existing common stock being canceled.' Management writes that common stockholders 'will not receive any recovery unless the holders of more senior claims and interests... are paid in full' — and those senior creditors 'are not expected to recover in full.' Their own conclusion: 'we expect that the common stock will become worthless.' At $11.66 the market cap is ~$505M for an equity the debtors themselves say is slated for cancellation at no consideration; the price 'may bear little or no relationship to the actual recovery.' Today's -8.55% move is noise against a terminal outcome.

The numbers explain why the equity is impaired. Stockholders' equity is NEGATIVE $115M against $454M of liabilities (liabilities/equity of -3.95x), including $342M of long-term debt plus $6.31M current. Retained earnings sit at -$919M of accumulated deficit. The company burned cash from operations (-$7.31M) while still spending $15.9M on capex, leaving only $18.4M of cash — hence the need for a $125M DIP facility just to keep the lights on through bankruptcy. Revenue is flat (~$562M, +1.4%) and has been range-bound for years, but net income has been negative in four of the last five years (-$51.3M in FY2025, the worst since 2021), operating income collapsed to $2.35M, and net margin is -9.1%. This is a structurally unprofitable, over-levered oilfield-services operator whose balance sheet finally forced a restructuring.