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National Energy Services Reunited Corp. Reports Second Quarter 2019 Financial Results

Wed, 07 Aug 2019 12:00:52

EQS-News: National Energy Services Reunited Corp. Reports Second Quarter 2019 Financial Results



Houston, 08/07/2019 / 06:00, EST/EDT - EQS Newswire - National Energy Services Reunited Corp. (Nasdaq)


HOUSTON, TX / ACCESSWIRE / August 7, 2019 / National Energy Services Reunited Corp. ('NESR' or the 'Company') (NASDAQ: NESR) (NASDAQ: NESRW), a national, industry-leading provider of integrated energy services in the Middle East and North Africa ('MENA') and Asia Pacific regions, today reported its financial results for the quarter ended June 30, 2019.

Operating and Financial Highlights

  • Revenue for the second quarter of 2019 is $160 million, growing 22% year-over-year
  • Net Income for the second quarter of 2019 is $11 million, an increase of $17 million year-over-year on a combined basis
  • Adjusted Net Income (a non-GAAP measure) for the second quarter of 2019 is $16 million, up 13% sequentially*
  • Adjusted EBITDA (a non-GAAP measure) is $46 million as compared to $34 million in the prior year combined period, producing year-over year-growth of over 33%*
  • Diluted Earnings per Share (EPS) for the second quarter of 2019 is $0.13, which included $0.06 per share of Charges and Credits
  • Adjusted Diluted EPS (a non-GAAP measure) for the second quarter of 2019 is $0.19*

*The Company presents its financial results in accordance with generally accepted accounting principles in the United States of America (“GAAP”). However, management believes that using additional non-GAAP measures will enhance the evaluation of the profitability of the Company and its ongoing operations. Please see Tables 1, 2, and 3 below for reconciliations of GAAP to non-GAAP financial measures. 


Sherif Foda, Chairman of the Board and CEO of NESR said, 'We are very delighted with our outstanding results this quarter. We celebrated the first-year anniversary of the Company in June and it is amazing how much has been achieved in such a short time. In this quarter alone, along with the refinancing of our debt facility at very favorable terms, we have secured and expanded our core contracts in Saudi Arabia for more than 5 years. We continue to make inroads in new countries like Bahrain as we did earlier in Kuwait and Chad. With these and all of the incremental contracts we have won over the last year, we are in a very strong position to kick off the remaining part of the year and the foreseeable future.'

Mr. Foda continued, 'As we have been continuously emphasizing since last year, the MENA region will be at the forefront of the international recovery and spending will continue to grow. This is now being recognized with broad market acceptance. We believe that as the National Champion of the region, we are uniquely positioned to capitalize on this ongoing activity growth. We are presently growing at more than double the rate and we believe we can further accelerate this growth in the coming quarters with the commencement of several of our previously announced and upcoming projects. We are proud to be from the region and aspire to continue to be key partners to our customers who share our vision of creating long-term sustainable In-Country Value. Our recently approved Environmental, Social and Governance (ESG) strategy is designed to deliver long-term economic, social and environmental value to all the communities we operate in.'

Net Income Results

The Company had net income for the second quarter of 2019 totaling $11.4 million as compared to a net loss of $5.5 million for the second quarter of 2018. Adjusted net income for the second quarter of 2019 is $16.4 million and includes adjustments totaling $5.1 million mainly related to integration and restructuring costs, exceptional interest charges, and other discrete provisions (collectively, 'Total Charges and Credits'). A complete list of the adjusting items and associated reconciliation from GAAP has been provided in Table 1 below in the section entitled 'Total Charges and Credits.' The effective tax rate for the Company for the three-month period ended June 30, 2019 is 21% as adjusted for Total Charges and Credits.

The Company reported $0.13 of diluted earnings per share for the second quarter of 2019 compared to $0.00 per share during the Predecessor second quarter period of 2018, a loss per share of $0.05 during the Successor second quarter period of 2018, and $0.15 per share during the first quarter 2019 period. Adjusted for the impact of Total Charges and Credits described in Table 1 below, Adjusted EPS for the second quarter of 2019 is $0.19.

See 'Business Combination Accounting and Presentation of Results of Operations' section below for additional information on current reporting conventions.

EBITDA Results

The Company produced Adjusted EBITDA of $45.7 million during the second quarter of 2019. Adjusted EBITDA includes adjustments for certain Total Charges and Credits (those not related to interest, taxes, and/or depreciation and amortization) of $2.9 million. The NESR companies collectively posted the following results for the periods presented.

(in thousands)
                 
    Successor NESR     Successor NESR    
Combined
NPS, GES and NESR
 
    April 1 to
June 30, 2019
    January 1 to March 31, 2019     April 1 to
June 30, 2018
 
Revenue
  $ 159,899     $ 151,704     $ 131,355  
Net Income
  $ 11,356     $ 13,174     $ (5,465 )
Adjusted EBITDA
  $ 45,714     $ 40,723     $ 34,257  
                         

Production Services Segment Results

The Production Services segment contributed $95.4 million to consolidated revenue for the second quarter of 2019 as compared to $86.9 million during the second quarter of 2018 and $92.1 million of revenue during the prior quarter. Segment EBITDA totaled $33.8 million in the second quarter of 2019, improving 6.6% as compared to $31.7 million in the prior quarter and 35% as compared to $25.0 million in the second quarter of 2018. The Production Services segment continued to grow quarter-over-quarter and year-over-year, with increases driven in the second quarter of 2019 by higher coil tubing and stimulation activities in Saudi Arabia, Iraq, and the United Arab Emirates. The Production Services segment posted the following results for the periods presented.

(in thousands)
                 
    Successor NESR     Successor NESR     Combined
NPS, GES and NESR
 
    April 1 to
June 30, 2019
    January 1 to March 31, 2019     April 1 to
June 30, 2018
 
Revenue
  $ 95,358     $ 92,113     $ 86,936  
EBITDA
  $ 33,764     $ 31,661     $ 25,014  
                         

Drilling and Evaluation Services Segment Results

The Drilling and Evaluation ('D&E') Services segment contributed $64.5 million to consolidated revenue for the second quarter of 2019 as compared to revenue of $44.4 million in the second quarter of 2018 and $59.6 million during the prior quarter. The D&E Services segment revenue has grown by over 45% over the past year as the Company continues to actively cross-sell its portfolio in the countries where it did not previously provide those services. Segment EBITDA totaled $15.0 million in the second quarter of 2019, improving 39.8% as compared to $10.7 million in the prior quarter, and 105.3% as compared to $7.3 million in the prior year quarter.

The D&E Services segment posted the following results for the periods presented.

(in thousands)
                 
    Successor NESR     Successor NESR     Combined
NPS, GES and NESR
 
    April 1 to
June 30, 2019
    January 1 to March 31, 2019     April 1 to
June 30, 2018
 
Revenue
  $ 64,541     $ 59,591     $ 44,419  
EBITDA
  $ 14,943     $ 10,688     $ 7,278  
                         

Offsetting both the Production Services segment and D&E Services segment results were certain corporate costs, which are not allocated to segment operations.

Balance Sheet

Cash and cash equivalents are $69.6 million as of June 30, 2019, compared to $24.9 million as of December 31, 2018. As previously disclosed, the Company completed a $525 million refinancing of existing debt in the second quarter of 2019.

Total debt as of June 30, 2019 is $366.5 million with $5.3 million of such debt classified as short-term. Working capital for the Company totaled $229.7 million as of June 30, 2019. Net debt totaled $296.9 million as of June 30, 2019. Net debt has increased by $19.7 million since December 31, 2018 to fund working capital growth as well as a consequence of a slowdown in collections in some countries. While collections are approximately $35.0 million below the prior year run rate, we expect collections to improve during the second half of 2019.

Predecessor/Successor Accounting Treatment

NESR continues to report in a Predecessor/Successor format whereby NPS Holdings Limited ('NPS') is the Predecessor for periods prior to the completion of the Business Combination on June 7, 2018 and NESR, including NPS and Gulf Energy S.A.O.C. ('GES'), is the Successor for post-transaction periods.

Conference Call Information

NESR will host a conference call on Wednesday, August 7, 2019, to discuss second quarter financial results. The call will begin at 9:00 AM Eastern Time.

Investors, analysts and members of the media interested in listening to the conference call are encouraged to participate by dialing in to the U.S. toll-free line at 1-877-407-0312 or the international line at 1-201-389-0899. A live, listen-only webcast will also be available under the 'Investors' section of the Company's website at www.nesr.com. A replay of the conference call will be available after the event under the 'Investors' section of the Company's website.

About National Energy Services Reunited Corp.

Founded in 2017, NESR is one of the largest national oilfield services providers in the MENA and Asia Pacific regions. With over 3,700 employees, representing more than 40 nationalities in over 15 countries, the Company helps its customers unlock the full potential of their reservoirs by providing Production Services such as Cementing, Coiled Tubing, Filtration, Completions, Stimulation and Pumping, and Nitrogen Services. The Company also helps its customers to access their reservoirs in a smarter and faster manner by providing Drilling and Evaluation Services such as Drilling Downhole Tools, Directional Drilling Fishing Tools, Testing Services, Wireline, Slickline, Fluids and Rig Services.

Business Combination Accounting and Presentation of Results of Operations

As a result of the Business Combination, NESR was determined to be the accounting acquirer and NPS was determined to be the predecessor for SEC reporting purposes. Pursuant to Accounting Standard Codification ('ASC') 805, Business Combinations ('ASC 805'), the acquisition-date fair value of the purchase consideration paid by NESR to affect the Business Combination was allocated to the assets acquired and the liabilities assumed based on their estimated fair values. As a result of the application of the acquisition method of accounting resulting from the Business Combination, the financial statements and certain footnote presentations separate the Company's presentations into two distinct sets of reporting periods, the periods before the consummation of the transaction ('Predecessor Periods') and the period after that date ('Successor Period'), to indicate the application of the different basis of accounting between the periods presented. The Predecessor Periods reflect the historical financial information of NPS prior to the Business Combination, while the Successor Period reflects the Company's consolidated financial information, including the results of NPS and GES, after the Business Combination. The successor periods are from June 7, 2018 to June 30, 2018 ('2018 Successor Period'), January 1, 2019 to June 30, 2019 ('2019 Successor Period'), and April 1, 2019 to June 30, 2019 ('2019 Successor Quarter) and the predecessor periods are from January 1, 2018 to June 6, 2018 ('2018 Predecessor Period') and April 1, 2018 to June 6, 2018 ('2018 Predecessor Quarter').

Forward-Looking Statements

This communication contains forward-looking statements (as such term is defined in Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended). Any and all statements contained in this communication that are not statements of historical fact may be deemed forward-looking statements. Terms such as 'may,' 'might,' 'would,' 'should,' 'could,' 'project,' 'estimate,' 'predict,' 'potential,' 'strategy,' 'anticipate,' 'attempt,' 'develop,' 'plan,' 'help,' 'believe,' 'continue,' 'intend,' 'expect,' 'future,' and terms of similar import (including the negative of any of these terms) may identify forward-looking statements. However, not all forward-looking statements may contain one or more of these identifying terms. Forward-looking statements in this communication may include, without limitation, statements regarding the benefits resulting from the Company's recent business combination transaction, the plans and objectives of management for future operations, projections of income or loss, earnings or loss per share, capital expenditures, dividends, capital structure or other financial items, the Company's future financial performance, expansion plans and opportunities, and the assumptions underlying or relating to any such statement.

The forward-looking statements are not meant to predict or guarantee actual results, performance, events or circumstances and may not be realized because they are based upon the Company's current projections, plans, objectives, beliefs, expectations, estimates and assumptions and are subject to a number of risks and uncertainties and other influences, many of which the Company has no control over. Actual results and the timing of certain events and circumstances may differ materially from those described by the forward-looking statements as a result of these risks and uncertainties. Factors that may influence or contribute to the accuracy of the forward-looking statements or cause actual results to differ materially from expected or desired results may include, without limitation: the ability to recognize the anticipated benefits of the Company's recent business combination transaction, which may be affected by, among other things, the price of oil, natural gas, natural gas liquids, competition, the Company's ability to integrate the businesses acquired and the ability of the combined business to grow and manage growth profitably; integration costs related to the Company's recent business combination; estimates of the Company's future revenue, expenses, capital requirements and the Company's need for financing; the risk of legal complaints and proceedings and government investigations; the Company's financial performance; success in retaining or recruiting, or changes required in, the Company's officers, key employees or directors; current and future government regulations; developments relating to the Company's competitors; changes in applicable laws or regulations; the possibility that the Company may be adversely affected by other economic and market conditions, political disturbances, war, terrorist acts, international currency fluctuations, business and/or competitive factors; and other risks and uncertainties set forth in the Company's most recent Annual Report on Form 20-F filed with the Securities and Exchange Commission (the 'SEC'). You are cautioned not to place undue reliance on forward-looking statements because of the risks and uncertainties related to them and to the risk factors. The Company disclaims any obligation to update the forward-looking statements contained in this communication to reflect any new information or future events or circumstances or otherwise, except as required by law. You should read this communication in conjunction with other documents which the Company may file or furnish from time to time with the SEC.

The preliminary financial results for the Company's second quarter ended June 30, 2019 included in this press release represent the most current information available to management. The Company's actual results when disclosed in its Periodic Report on Form 6-K for the quarter ended June 30, 2019 may differ from these preliminary results as a result of the completion of the Company's financial statement closing procedures, final adjustments, completion of the independent registered public accounting firm's review procedures, and other developments that may arise between now and the disclosure of the final results.

NATIONAL ENERGY SERVICES REUNITED CORP. AND SUBSIDIARIES
UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS
(In US$ thousands, except share data)

    June 30,
2019
    December 31,
2018
 
             
Assets
           
Current assets
           
Cash and cash equivalents
    69,643       24,892  
Accounts receivable, net
    102,731       62,636  
Unbilled revenue
    92,333       95,145  
Service inventories, net
    65,057       58,151  
Prepaid assets
    9,306       6,937  
Retention withholdings
    27,887       22,011  
Other receivables
    22,278       16,695  
Other current assets
    9,439       13,178  
Total current assets
    398,674       299,645  
Non-current assets
               
Property, plant and equipment, net
    354,034       328,727  
Intangible assets
    130,383       138,052  
Goodwill
    574,764       570,540  
Other assets
    3,272       6,345  
Total assets
  $ 1,461,127     $ 1,343,309  
                 
Liabilities and equity
               
Liabilities
               
Accounts payable
    68,235       66,264  
Accrued expenses
    71,264       38,986  
Current portion of loans and borrowings
    -       45,093  
Short-term borrowings
    5,267       31,817  
Income taxes payable
    3,584       10,991  
Other taxes payable
    14,202       5,806  
Other current liabilities
    6,460       24,123  
Total current liabilities
    169,012       223,080  
                 
Loans and borrowings
    361,234       225,172  
Deferred tax liabilities
    29,967       30,756  
Pension benefit liabilities
    14,239       13,828  
Other liabilities
    18,576       19,482  
Total liabilities
    593,028       512,318  
                 
Equity
               
Preferred shares, no par value; unlimited shares authorized; none issued and outstanding at June 30, 2019 or December 31, 2018
    -       -  
Common stock, no par value; unlimited shares authorized; 86,896,779 shares issued and outstanding at June 30, 2019 and December 31, 2018
    801,545       801,545  
Additional paid in capital
    13,698       1,034  
Retained earnings
    52,827       28,297  
Accumulated other comprehensive income
    29       48  
Total shareholders??? equity
    868,099       830,924  
Non-controlling interests
    -       67  
Total equity
    868,099       830,991  
Total liabilities and equity
  $ 1,461,127     $ 1,343,309  
                 

NATIONAL ENERGY SERVICES REUNITED CORP. AND SUBSIDIARIES
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(In US$ thousands, except share data)

             
    Successor (NESR)     Predecessor (NPS)  
Description
  Period from January 1, 2019 to June 30,
2019
    Period from April 1, 2019 to June 30,
2019
    Period from June 7, 2018 to June 30,
2018
    Period from January 1, 2018 to June 6,
2018
    Period from April 1, 2018 to June 6, 2018  
                               
Revenues
  $ 311,603     $ 159,899     $ 44,986     $ 137,027     $ 60,185  
Cost of services
    (231,390 )     (116,893 )     (37,055 )     (104,242 )     (46,070 )
Gross profit
    80,213       43,006       7,931       32,785       14,115  
Selling, general and administrative expense
    (30,107 )     (17,062 )     (9,021 )     (19,969 )     (10,469 )
Amortization
    (8,003 )     (3,949 )     (1,536 )     (10 )     (10 )
Operating income
    42,103       21,995       (2,626 )     12,806       3,636  
Interest expense, net
    (9,680 )     (5,750 )     (1,900 )     (4,090 )     (1,265 )
Other income (expense), net
    (499 )     (438 )     (468 )     362       271  
Income before income tax
    31,924       15,807       (4,994 )     9,078       2,642  
Income tax (expense) benefit
    (7,394 )     (4,451 )     1,029       (2,342 )     (1,359 )
Net income (loss)
    24,530       11,356       (3,965 )     6,736       1,283  
Net loss attributable to non-controlling interests
    -       -       (219 )     (881 )     (541 )
Net income attributable to shareholders
  $ 24,530     $ 11,356     $ (3,746 )   $ 7,617     $ 1,824  
                                         
Weighted average shares outstanding:
                                       
Basic
    86,895,285       86,896,779       85,562,769       348,524,566       348,524,566  
Diluted
    86,895,285       86,896,779       85,562,769       370,000,000       370,000,000  
                                         
Net earnings per share:
                                       
Basic
  $ 0.28     $ 0.13     $ (0.05 )   $ 0.02     $ 0.00  
Diluted
  $ 0.28     $ 0.13     $ (0.05 )   $ 0.02     $ 0.00  
                                         

NATIONAL ENERGY SERVICES REUNITED CORP. AND SUBSIDIARIES
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(In US$ thousands)

                   
   
Period from
January 1 to
June 30, 2019
   
Period from
June 7 to
June 30, 2018
   
Period from
January 1 to
June 6, 2018
 
Description
 
Successor
(NESR)
    Predecessor (NPS)  
Cash Flows from Operating Activities:
                 
Net income
  $ 24,530     $ (3,965 )   $ 6,736  
Adjustments to reconcile net income to net cash provided by operating activities:
                       
Depreciation and amortization
    38,476       6,460       17,284  
Shares issued for transaction costs
    -       2,175          
Stock-based compensation
    2,113               -  
(Gain) on disposal of assets
    (356 )     (281 )     -  
Accrued interest
    2,484       1,899       3,350  
Deferred tax expense (benefit)
    (1,077 )     -       -  
Allowance for doubtful receivables
    476       -       2,402  
Provision for obsolete service inventories
    1,057       -       -  
Other operating activities, net
    (1,848 )     603       1,442  
Changes in operating assets and liabilities:
    -                  
(Increase) decrease in accounts receivable
    (41,440 )     801       (15 )
(Increase) in inventories
    (7,964 )     (35 )     (2,080 )
(Increase) decrease in prepaid expenses
    (2,289 )     462       (759 )
(Increase) in other current assets
    (8,651 )     (8,387 )     (16,257 )
(Increase) decrease in other long-term assets and liabilities
    702       2,039       (544 )
Increase in accounts payable and accrued expenses
    20,009       13,397       7,335  
Increase (decrease) in other current liabilities
    (2,050 )     (844 )     1,932  
Net cash provided by operating activities
    24,172       14,324       20,826  
                         
Cash Flows from Investing Activities:
                       
Capital expenditures
    (56,513 )     (2,157 )     (9,861 )
Proceeds from disposal of assets
    1,273       -       -  
Proceeds from the Company???s Trust account
    -       231,782       -  
Acquisition of business, net of cash acquired
    -       (282,190 )     (1,098 )
Other investing activities
    (285 )     330       3,043  
Net cash used in investing activities
    (55,525 )     (52,235 )     (7,916)  
                         
Cash Flows from Financing Activities:
                       
Proceeds from loans and borrowings
    365,000       50,000       47,063  
Repayments of loans and borrowings
    (278,039 )     -       -  
Net change in short-term borrowings
    (7,013 )                
Proceeds from issuance of shares
    -       48,294       -  
Redemption of ordinary shares
    -       (19,380 )     -  
Payment of deferred underwriting fees
    -       (5,333 )     (164 )
Dividend paid
    -       -       (48,210 )
Other financing activities, net
    (3,825 )     1,185       (4,429 )
Net cash provided by (used in) financing activities
    76,123       74,766       (5,740)  
                         
Effect of exchange rate changes on cash
    (19 )     -       (16 )
Net increase (decrease) in cash
    44,751       36,855       7,154  
Cash and cash equivalents, beginning of period
    24,892       46       24,502  
Cash and cash equivalents, end of period
    69,643       36,901       31,656  
                         
Supplemental disclosure of cash flow information (also refer Note 3):
                       
Interest paid
    8,317       143       3,636  
Income taxes paid
    13,890       3,061       345  
                         

NATIONAL ENERGY SERVICES REUNITED CORP. AND SUBSIDIARIES
RECONCILIATION OF ADJUSTED EBITDA AND ADJUSTED NET INCOME TO NET INCOME
(Unaudited)
(In US$ thousands)

The Company uses and presents certain key non-GAAP financial measures to evaluate its business and trends, measure performance, prepare financial projections and make strategic decisions. Included in this release are discussions of earnings before interest, income tax and depreciation and amortization adjusted for certain non-recurring and non-core expenses ('Adjusted EBITDA'), net income adjusted for certain non-recurring and non-core expenses ('Adjusted Net Income') as well a reconciliation of these non-GAAP measures to net income in accordance with GAAP.

The Company believes that the presentation of Adjusted EBITDA and Adjusted Net Income provides useful information to investors in assessing its financial performance and results of operations as the Company's board of directors, management and investors use Adjusted EBITDA and Adjusted Net Income to compare the Company's operating performance on a consistent basis across periods by removing the effects of changes in capital structure (such as varying levels of interest expense), asset base (such as depreciation and amortization and impairment), items that do not impact the ongoing operations (Business Combination transaction expenses and related integration costs) and items outside the control of its management team. Adjusted EBITDA and Adjusted Net Income should not be considered as an alternative to net income, the most directly comparable GAAP financial measure. Non-GAAP financial measures have important limitations as analytical tools because they exclude some but not all items that affect the most directly comparable GAAP financial measure. You should not consider non-GAAP measures in isolation or as a substitute for an analysis of the Company's results as reported under GAAP.

Table 1 - Reconciliation of Net Income and Adjusted Net Income

             
    Successor (NESR)     Successor (NESR)  
    April 1 to June 30, 2019     January 1 to March 31, 2019  
    Net Income     Diluted EPS     Net Income     Diluted EPS  
                         
Net Income
  $ 11,356     $ 0.13     $ 13,174     $ 0.15  
Add Charges and Credits:
                               
Integration and restructuring costs
    2,368       0.03       1,372       0.02  
Exceptional interest charges
    1,820       0.02       -       -  
Other discrete provisions
    866       0.01       -       -  
Total Charges and Credits
    5,054       0.06       1,372       0.02  
Total Adjusted
  $ 16,410     $ 0.19     $ 14,546     $ 0.17  

Table 2 - Reconciliation of Net Income to Adjusted EBITDA for Successor Periods

       
    Successor -NESR  
    April 1 to June 30, 2019     January 1 to
March 31, 2019
 
             
Net Income
  $ 11,356     $ 13,174  
Add:
               
Income Taxes
    4,451       2,943  
Interest Expense, net
    5,750       3,930  
Depreciation and Amortization
    21,285       19,304  
Charges and Credits impacting Adjusted EBITDA
    2,872       1,372  
Total Adjusted EBITDA
  $ 45,714     $ 40,723  
                 

Table 3 - Reconciliation of Net Income to Adjusted EBITDA for Predecessor Period

                   
    Successor NESR     Predecessor NPS     Combined NPS, GES and NESR  
    June 7 to June 30, 2018     April 1 to June 6, 2018     April 1 to June 30, 2018  
Net Income (loss)
  $ (3,965 )   $ (1,500 )   $ (5,465 )
Add:
                       
Income Taxes
    (1,029 )     1,804       775  
Interest Expense, net
    1,900       1,370       3,270  
Depreciation and Amortization
    6,460       10,338       16,798  
Charges and Credits impacting Adjusted EBITDA
    7,302       11,577       18,879  
Total Adjusted EBITDA
  $ 10,668     $ 23,589     $ 34,257  
                         

Table 4 - Reconciliation of Segment EBITDA to Adjusted EBITDA for Successor Periods

             
    Successor (NESR)     Successor (NESR)  
    April 1 to June 30, 2019     January 1 to March 31, 2019  
    EBITDA     Charges and Credits impacting Adjusted EBITDA     Adjusted EBITDA     EBITDA     Charges and Credits impacting Adjusted EBITDA     Adjusted EBITDA  
Production Services
  $ 33,764     $ 315     $ 34,079     $ 31,661     $ -     $ 31,661  
Drilling & Evaluation
    14,943       1,372       16,315       10,688       -       10,688  
Unallocated
    (5,865 )     1,185       (4,680 )     (2,998 )     1,372       (1,626 )
Total
  $ 42,842     $ 2,872     $ 45,714     $ 39,351     $ 1,372     $ 40,723  
                                                 

Table 5 - Reconciliation of Segment EBITDA to Adjusted EBITDA for Predecessor Period

       
    Combined  
    April 1 to June 30, 2018  
    EBITDA     Charges and Credits impacting Adjusted EBITDA     Adjusted EBITDA  
Production Services
  $ 25,014     $ 1,276     $ 26,290  
Drilling & Evaluation
    7,278       2,384       9,662  
Unallocated
    (16,914 )     15,219       (1,695 )
Total
  $ 15,378     $ 18,879     $ 34,257  
                         

For inquiries regarding NESR, please contact:

Christopher L. Boone
National Energy Services Reunited Corp.
832-925-3777
investors@nesr.com

SOURCE: National Energy Services Reunited Corp.



08/07/2019 EQS Newswire / EQS Group AG



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