Why Nine Energy Service Shares Are Surging

Nine Energy Service Inc NINE is soaring Tuesday morning after the company reported better-than-expected financial results.

Nine Energy said fourth-quarter revenue increased 13% quarter-over-quarter to $105.09 million, which beat the $95.8 million estimate. The company reported a quarterly earnings loss of 52 cents per share, which beat the estimate for a loss of 55 cents per share. 

"We remain very optimistic looking into 2022 and 2023 and anticipate North American capital spending will increase by at least 20% in 2022," said Ann Fox, president and CEO of Nine Energy.

Nine Energy shares are also trading higher as the U.S. prepares to ban Russian oil imports, which is expected to add to supply disruptions and soaring oil prices. 

Nine Energy is a North American onshore completion and production services provider. The company targets unconventional oil and gas resource development.

See Also: Why US Energy Shares Are Surging Today

NINE 52-Week Range: $0.79 - $4.20

The stock was up 84.1% at $6.61 at time of publication.

Photo: ferdinandkozeluh0 from Pixabay.