Nine Energy Service Begins Prepackaged Chapter 11 Restructuring

Nine Energy Service ( (NINE) ) just unveiled an announcement.

On February 1, 2026, Nine Energy Service and certain subsidiaries filed voluntary Chapter 11 petitions in the U.S. Bankruptcy Court for the Southern District of Texas to implement a prepackaged reorganization plan aimed at restructuring their existing indebtedness. The company entered into a restructuring support agreement with an ad hoc group of holders of its 13.000% senior secured notes due 2028 and its asset‑based lenders, under which the noteholders will receive 100% of the equity in the reorganized company, the senior secured notes and existing common stock will be canceled, and a management equity incentive plan will be put in place. The plan is backed by more than 70% of the senior secured noteholders and all prepetition ABL lenders, and is designed to move quickly: Nine has sought approval for a $125 million debtor‑in‑possession ABL facility from its existing ABL lenders, expects that facility to roll into a $135 million exit ABL facility upon emergence, and is targeting emergence from Chapter 11 within 45 days of the filing. The filing triggered defaults and acceleration under Nine’s existing debt instruments, but enforcement is stayed by the bankruptcy process, and the company warns that trading in its securities is highly speculative, with current equity holders expected to suffer a complete loss as their shares are canceled for no consideration.

The most recent analyst rating on (NINE) stock is a Hold with a $0.58 price target. To see the full list of analyst forecasts on Nine Energy Service stock, see the NINE Stock Forecast page.

Spark’s Take on NINE Stock

According to Spark, TipRanks’ AI Analyst, NINE is a Neutral.

The score is held down primarily by weak fundamentals—negative profitability, negative free cash flow, and a highly stressed balance sheet with negative equity—plus a cautious earnings outlook with revenue below guidance and continued pricing/rig-count headwinds. Technical momentum is a key offset, showing improving trend strength, while valuation remains unattractive due to losses and no dividend support.

To see Spark’s full report on NINE stock, click here.

More about Nine Energy Service

Nine Energy Service is an oilfield services provider that supports unconventional drilling and completion operations, offering tools and services for well construction and production, primarily to North American exploration and production companies. The company is capital intensive and highly leveraged, relying on access to asset-based lending facilities and the bond markets to fund operations and manage its debt load.

Average Trading Volume: 2,487,010

Technical Sentiment Signal: Sell

Current Market Cap: $25.42M

Learn more about NINE stock on TipRanks’ Stock Analysis page.