As filed with the Securities and Exchange Commission on September 20, 2019April 5, 2022

No. 333-          

 

 

 

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

 

 

FORMS-3

REGISTRATION STATEMENT

UNDER

THE SECURITIES ACT OF 1933

 

 

Nine Energy Service, Inc.

(Exact name of registrant as specified in its charter)

 

 

 

Delaware 80-0759121

(State or other jurisdiction of
incorporation or

organization)

 (I.R.S. Employer
Identification No.)Number)

2001 Kirby Drive, Suite 200

Houston, Texas 77019

(281) 730-5100

(Address, including zip code, and telephone number, including area code, of registrant’s principal executive offices)

 

 

Theodore R. Moore

Senior Vice President and General Counsel

2001 Kirby Drive, Suite 200

Houston, Texas 77019

Telephone:(281) 730-5100

(Name, address, including zip code, and telephone number, including area code, of agent for service)

 

 

Copies to:

Matthew R. Pacey, P.C.

Lanchi D. Huynh

Kirkland & Ellis LLP

609 Main Street, Suite 4700

Houston, Texas 77002

(713)836-3600

 

 

Approximate date of commencement of proposed sale to the public:

From time to time after the effective date of this registration statement

 

 

If the only securities being registered on this Form are being offered pursuant to dividend or interest reinvestment plans, please check the following box.box:  ☐

If any of the securities being registered on this Form are to be offered on a delayed or continuous basis pursuant to Rule 415 under the Securities Act of 1933, other than securities offered only in connection with dividend or interest reinvestment plans, check the following box.box:  ☒

If this Form is filed to register additional securities for an offering pursuant to Rule 462(b) under the Securities Act, please check the following box and list the Securities Act registration statement number of the earlier effective registration statement for the same offering.  ☐

If this Form is a post-effective amendment filed pursuant to Rule 462(c) under the Securities Act, check the following box and list the Securities Act registration statement number of the earlier effective registration statement for the same offering.  ☐

If this Form is a registration statement pursuant to General Instruction I.D. or a post-effective amendment thereto that shall become effective upon filing with the Commission pursuant to Rule 462(e) under the Securities Act, check the following box.  ☐

If this Form is a post-effective amendment to a registration statement filed pursuant to General Instruction I.D. filed to register additional securities or additional classes of securities pursuant to Rule 413(b) under the Securities Act, check the following box.  ☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, anon-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company” and “emerging growth company” in Rule12b-2 of the Exchange Act.

 

Large accelerated filer   Accelerated filer 
Non-accelerated filer   Smaller reporting company 
   Emerging growth company 

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 7(a)(2)(B) of the Securities Act.  ☐

CALCULATION OF REGISTRATION FEE

 

Title of Each Class of

Securities to be Registered

 Amount to be
Registered(1)
 

Proposed

Maximum

Offering Price

Per Share(2)

 

Proposed

Maximum
Aggregate

Offering Price(2)

 Amount of
Registration Fee

Common stock, par value $0.01 per share

 5,000,000 $6.49 $32,450,000 $3,932.94

 

 

(1)

In accordance with Rule 416 under the Securities Act of 1933, as amended (the “Securities Act”), this registration statement shall be deemed to cover any additional shares to be offered or issued from stock splits, stock dividends or similar transactions with respect to the shares being registered.

(2)

Estimated solely for the purpose of calculating the registration fee pursuant to Rule 457(c) under the Securities Act, based on the average of the high and low prices of the registrant’s common stock on the New York Stock Exchange on September 13, 2019.

 

 

The registrant hereby amends this registration statement on such date or dates as may be necessary to delay its effective date until the registrant shall file a further amendment which specifically states that this registration statement shall thereafter become effective in accordance with Section 8(a) of the Securities Act of 1933 or until this registration statement shall become effective on such date as the Securities and Exchange Commission, acting pursuant to said Section 8(a), may determine.

 

 

 


The information contained in this preliminary prospectus is not complete and may be changed. The selling stockholders identified hereinWe may not sell these securities until the registration statement filed with the Securities and Exchange Commission is effective. This preliminary prospectus is not an offer to sell these securities and it is not the solicitation ofsoliciting an offer to buy these securities in any jurisdiction where thean offer or sale is not permitted.

 

Subject to Completion, dated September 20, 2019April 5, 2022

Prospectus

 

 

LOGO

Nine Energy Service, Inc.

5,000,000$250,000,000

Common Stock

Preferred Stock

Warrants

Rights

and

9,326,080 Shares of Common Stock Offered by the Selling Stockholders

 

 

We may offer and sell, from time to time, in one or more series or classes, separately or together, and in amounts, at prices and on terms to be set forth in one or more supplements to this prospectus, the following securities: shares of our common stock, par value $0.01 per share; shares of our preferred stock, par value $0.01 per share; warrants to purchase shares of our common stock or preferred stock; or rights to purchase shares of our common stock or preferred stock. The aggregate initial offering price of all securities sold by us under this prospectus (the “securities”) will not exceed $250,000,000.

The specific terms of the securities will be set forth in the applicable prospectus supplement and will include, as applicable: (i) in the case of our common stock, any public offering price; (ii) in the case of our preferred stock, the specific designation and any dividend, liquidation, redemption, conversion, voting and other rights, and any public offering price; (iii) in the case of warrants, the duration, offering price, exercise price and detachability; and (iv) in the case of rights, the number being issued, the exercise price and the expiration date. The applicable prospectus supplement will also contain information, where applicable, about certain U.S. federal income tax consequences relating to, and any listing on a securities exchange of, the securities covered by such prospectus supplement. It is important that you read both this prospectus and the applicable prospectus supplement before you invest.

We may offer the securities directly, through agents, or to or through underwriters. The prospectus supplement will describe the terms of the plan of distribution and set forth the names of any underwriters involved in the sale of the securities. See “Plan of Distribution” for more information on this topic. No securities may be sold without delivery of a prospectus supplement describing the method and terms of the offering of those securities.

This prospectus relates toalso covers the offering and resale by the selling stockholders identified herein (the “Selling Stockholders”“selling stockholders”) of up to 5,000,0009,326,080 shares (the “offered shares”) of our common stock, par value $0.01 per share (“common stock”), of Nine Energy Service, Inc. (“Nine,” the “Company,” “we” or “us”), from time to time, in amounts, at prices and on terms that will be determined at the time of the applicable offering. We are notThe selling any shares of common stock under this prospectus, and we will not receive any of the proceeds from the sale of the offered shares.

The Selling Stockholdersstockholders may offer and sell the offeredsuch shares directly, through agents, or to or through one or more underwriters, dealers and agents, or directly to purchasers, on a continuous or delayed basis. The price at which the Selling Stockholders may sell the offered shares will be determined by the prevailing market for the offered securities or in negotiated transactions that may be at prices other than prevailing market prices.underwriters. See “Plan of Distribution” elsewhere in this prospectus for more information about how the Selling Stockholdersselling stockholders may sell or otherwise dispose of the offeredsuch shares. Our registration of the offeredthese shares does not mean that the Selling Stockholdersselling stockholders will offer or sell any shares of our common stock. We will not receive any proceeds from the sale or other disposition of the common stock by the selling stockholders.

Our common stock is listed on Thethe New York Stock Exchange (“NYSE”) under the symbol “NINE.” On September 19, 2019,

We are an “emerging growth company” as defined in the last reported sale priceJumpstart Our Business Startups Act of our common stock was $7.06 per share.2012 and have elected to comply with certain reduced public company reporting requirements.

Investing in our sharessecurities involves a number of risks. Seerisks that are described in the Risk Factors section beginning on page 3 to read about factors you should carefully consider before investing2 of this prospectus and in our common stock.the documents incorporated by reference herein.

Neither the Securities and Exchange Commission (“SEC”(the “SEC”) nor any state securities commission nor any other regulatory body has approved or disapproved of these securities or passed upon the accuracyadequacy or adequacyaccuracy of this prospectus. Any representation to the contrary is a criminal offense.

The date of this prospectus is                 September 20, 2019., 2022.


TABLE OF CONTENTS

 

Page

ABOUT THIS PROSPECTUS

   ii 

CAUTIONARY NOTE REGARDING FORWARD-LOOKING STATEMENTS

   iii 

SUMMARY

   1 

RISK FACTORS

   32 

USE OF PROCEEDS

   3 

SELLING STOCKHOLDERS

   4 

PLAN OF DISTRIBUTION

   6 

DESCRIPTION OF COMMON STOCK

10

DESCRIPTION OF PREFERRED STOCK

13

DESCRIPTION OF WARRANTS

14

DESCRIPTION OF RIGHTS

16

LEGAL MATTERS

   817 

EXPERTS

   817 

WHERE YOU CAN FIND MORE INFORMATION

   817 

INCORPORATION OF CERTAIN INFORMATION BY REFERENCE

   817 

 

i


ABOUT THIS PROSPECTUS

This prospectus is part of a shelf registration statement. Under this shelf registration statement, on FormS-3 that we are filing with the SEC using a “shelf” registration process. Under this process, using this prospectus and, if required, one or more prospectus supplements, the Selling Stockholders may sell, from time to time offer and sell the shares of our common stock covered by this prospectus in one or more offerings.

offerings, up to $250,000,000 million of any combination of the securities described in this prospectus. This prospectus provides you with a general description of our securities that we may offer and is not meant to be a complete description of each of the securities. In addition, the selling stockholders may sell, from time to time and in one or more offerings, up to an aggregate of 9,326,080 shares of our common stock thatstock.

You should read carefully the Selling Stockholders may offer. Each time the Selling Stockholders sell sharesentirety of our common stock, we will, to the extent required by law, provide athis prospectus and any applicable prospectus supplement, that contains specific information aboutas well as the terms of that offering. Prospectus supplements may also add, update or change information containeddocuments incorporated by reference in this prospectus. If the description of the offering varies betweenprospectus and any applicable prospectus supplement, before making an investment decision. You should also read and this prospectus, you should rely onconsider the information in the documents we have referred you to in the sections of this prospectus entitled “Incorporation of Certain Information by Reference” and “Where You Can Find More Information.”

You should rely only on the information provided or incorporated by reference in this prospectus or any applicable prospectus supplement. We and the selling stockholders have not authorized anyone to provide you with different or additional information.

You should not assume that the information appearing in this prospectus andor any accompanyingapplicable prospectus supplement or the documents incorporated by reference herein or therein is accurate as of theany date on itsother than their respective cover, and that any information incorporated by reference is accurate only as of the date of the document incorporated by reference, unless we indicate otherwise.dates. Our business, financial condition, results of operations and prospects may have changed since those dates.

BeforeWe are not making an investment in our common stock, you should carefully read this prospectus, any applicable prospectus supplement and any applicable free writing prospectus, together with the information incorporated and deemed to be incorporated by reference herein as described under “Incorporation of Certain Information by Reference” and the additional information described under the heading “Where You Can Find More Information.”

You should rely only on the information contained or incorporated by reference in this prospectus and any accompanying prospectus supplement. We have not authorized anyone to provide you with different or additional information. If anyone provides you with different or additional information, you should not rely on it.

This prospectus and any accompanying prospectus supplement do not constitute an offer to sell or the solicitation of an offer to buy any securities other than the registered securities to which they relate, nor do this prospectus and any accompanying prospectus supplement constitute an offer to sell or the solicitation of an offer to buythese securities in any jurisdiction to any person to whom it is unlawful to make suchwhere the offer or solicitation in such jurisdiction.sale of these securities is not permitted.

In this prospectus, unless otherwise specified or the context requires otherwise, we use the terms “Nine,” the “Company,” “we,” “us” and “our” to refer to Nine Energy Service, Inc. and its consolidated subsidiaries.

 

ii


CAUTIONARY NOTE REGARDING FORWARD-LOOKING STATEMENTS

This prospectus, any accompanying prospectus supplement and the documents incorporated by reference may contain “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended (the “Securities Act”), and Section 21E of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), that are subject to a number of risks and uncertainties, many of which are beyond our control. All statements other than statements of historical fact, including those regarding our strategy, future operations, financial position, estimated revenues and losses, projected costs, prospects, plans and objectives of management, are forward-looking statements. Forward-looking statements can be identified by terms such as “could,” “believe,” “anticipate,” “intend,” “estimate,” “expect,” “may,” “continue,” “predict,” “potential,” “project” and similar expressions are intended to identify forward-looking statements, although not all forward-looking statements contain such identifying words.

All forward-looking statements speak only as of the date of the document in which they are contained; we disclaim any obligation to update these statements unless required by law, and we caution you not to place undue reliance on them. Although we believe that our plans, intentions and expectations reflected in or suggested by these forward-looking statements are reasonable, we can give no assurance that these plans, intentions or expectations will be achieved. We disclose important factors that could cause our actual results to differ materially from our expectations under “Risk Factors” in our most recent Annual Report on Form10-K. These These factors, some of which are beyond our control, include the following:

 

the level of capital spending and well completions by the onshore oil and natural gas industry;

industry, which is strongly influenced by current and expected oil and natural gas commodity prices;prices.

our substantial debt obligations, including restrictions in our debt agreements;

 

general economic conditions;conditions and inflation, particularly, cost inflation with labor or materials;

 

our ability to employ, or maintain the employment of, a sufficient number ofattract and retain key employees, technical personnel and other skilled and qualified workers;

 

the recent coronavirus pandemic and related economic repercussions;

our ability to maintain existing prices or implement price increases or maintain existing prices on our products and services;

 

pricing pressures, reduced sales or reduced market share as a result of intense competition in the markets for our composite and dissolvable plug products;

our ability to accurately predict customer demand;

 

conditions inherent in the oilfield services industry, such as equipment defects, liabilities arising from accidents or damage involving our fleet of trucks or other equipment, explosions and uncontrollable flows of gas or well fluids, and loss of well control;

 

our ability to implement new technologies and services;accurately predict customer demand;

 

seasonalthe loss of one or more significant customers;

claims for personal injury and adverse weather conditions;property damage or other litigation;

 

changes in laws or regulations regarding issues of health, safety and protection of the environment, including those relating to hydraulic fracturing, greenhouse gases and climate change; and

 

our ability to successfully integrate the assetsimplement new technologies and operations that we acquired withservices;

significant ownership of our acquisition of Magnum Oil Tools International, LTD, Magnum Oil Tools GP, LLCcommon stock by certain stockholders;

asset impairment charges;

increased attention to climate change and Magnum Oil Tools Canada Ltd. (collectively, “Magnum”conservation measures, which may reduce oil and such acquisition, the “Magnum Acquisition”)natural gas demand, and realize anticipated revenues, cost savings or other benefits of such acquisition.increased activism and related litigation against oil and natural gas exploration and development activities; and

seasonal and adverse weather conditions.

iii


Additional risks or uncertainties that are not currently known to us that we currently deem to be immaterial, or that could apply to any company could also materially adversely affect our business, financial condition or future results.

These cautionary statements qualify all forward-looking statements attributable to us or persons acting on our behalf.

 

iiiiv


SUMMARY

Nine Energy Service, Inc. is an oilfielda Delaware corporation that was formed in February 2013 through a combination of three service companies owned by SCF Partners, L.P. or its affiliates. Nine is a leading completion services companyprovider that offers completion solutions withintargets unconventional oil and gas resource development across North AmericaAmerican basins and abroad. We partner with our exploration and production customers to design and deploy downhole solutions and technology to prepare horizontal, multistage wells for production. We focus on providing our customers with cost-effective and comprehensive completion solutions designed to maximize their production levels and operating efficiencies. We believe our success is a product of our culture, which is driven by our intense focus on performance and wellsite execution as well as our commitment to forward-leaning technologies that aid us in the development of smarter, customized applications that drive efficiencies.

Corporate Information

Our principal executive offices are located at 2001 Kirby Drive, Suite 200, Houston, Texas 77019, and our telephone number at that location is (281)730-5100. Our Our website can be found atwww.nineenergyservice.comat www.nineenergyservice.com. The information contained on our website or that can be accessed through our website is not part of this prospectus and you should not rely on that information when making a decision whether to invest in our common stock.securities.



THE OFFERING

Common stock outstanding as of September 16, 2019

29,362,924 shares

Common stock offered by the Selling Stockholders

5,000,000 shares

Terms of the offering

The Selling Stockholders will determine when and how they sell the shares of common stock offered in this prospectus, as described in “Plan of Distribution.”

Use of proceeds

We will not receive any of the proceeds from the sale of the shares of common stock being offered in this prospectus. See “Use of Proceeds.”

NYSE symbol

Our common stock is listed on the NYSE under the symbol “NINE.”

Risk factors

You should read the “Risk Factors” section of this prospectus for a discussion of factors to consider carefully before deciding to invest in shares of our common stock.


RISK FACTORS

Investing in our common stocksecurities involves a high degree of risk. You should carefully consider the risks and uncertainties incorporated by reference to our most recent Annual Report on Form10-K. 10-K and our subsequent quarterly reports on Form 10-Q. You should also consider any risks and uncertainties described under the caption “Risk Factors” in any applicable prospectus supplement and in any document that we file with the SEC after the date of this prospectus that is incorporated by reference herein. Our business, financial condition, results of operations or prospects could be materially adversely affected by any of these risks. The market or trading price of our common stocksecurities could decline due to any of these risks, and you may lose all or part of your investment. Please note that additional risks not presently foreseen by us or that we currently deem immaterial may also impair our business and operations.

USE OF PROCEEDS

We will not receive anyUnless otherwise specified in the applicable prospectus supplement, we intend to use the net proceeds from the sale of the offered shares bysecurities for general corporate purposes, including repaying indebtedness, making capital expenditures, funding working capital, and funding future acquisitions and investments. Further details relating to the Selling Stockholders. Alluse of the net proceeds will be set forth in the applicable prospectus supplement.

Up to 9,326,080 shares of our common stock offered by this prospectus are being registeredmay be sold or otherwise disposed of for the account of the Selling Stockholders.selling stockholders. We will not receive any of the proceeds from the sale or other disposition of the common stock by the selling stockholders.

SELLING STOCKHOLDERS

This prospectus relatescovers up to the possible resale9,326,080 shares of common stock that may be sold or otherwise disposed of by the Selling Stockholdersselling stockholders. The registration of upthe offer and sale of these shares does not mean that the selling stockholders will sell or otherwise dispose of all or any of these shares. The selling stockholders may sell or otherwise dispose of all, a portion or none of such shares from time to 5,000,000time. We do not know the aggregate number of securities, if any, that will be offered for sale or other disposition by any of the selling stockholders under this prospectus.

We are registering these shares of our common stock all of which were issuedfor sale by the Company to the Selling Stockholders as part of the purchase price in the Magnum Acquisition. On October 25, 2018,selling stockholders pursuant to the terms of a Securities PurchaseSecond Amended and Restated Stockholders Agreement, dated October 15, 2018 (asFebruary 28, 2017 and amended to date, the “Magnum PurchaseJuly 24, 2017 (the “Stockholders Agreement”), the Selling Stockholders sold tobetween us, all of the equity interests of Magnum for approximately $334.5 million in upfront cash consideration, subject to customary adjustments, and 5,000,000 million shares of our common stock. The Magnum Purchase Agreement also includes the potential for additional future payments in cash to the Selling Stockholders of (i) up to 60% of net income (before interest, taxes,such selling stockholders and certain gains or losses) for the“E-Set” tools business in 2019 through 2026 and (ii) up to $25.0 million based on sales of certain dissolvable plug products in 2019.

In connection with the Magnum Acquisition, the Company and the Selling Stockholders entered into a registration rights agreement, dated as of October 25, 2018 (the “Registration Rights Agreement”). Under the Registration Rights Agreement, the Selling Stockholders have certain piggyback rights with respect to certain other underwritten offerings conducted by the Company for its own account or other stockholders of the Company. The Majority Holders (as defined in the Registration Rights Agreement) have the right to require the Company to prepare and file a “shelf” registration statement under the Securities Act to permit the resale of the Registrable Securities (as defined in the Registration Rights Agreement) from time to time as permitted by Rule 415 under the Securities Act (the “Shelf Registration Statement”), subject to certain requirements and exceptions. The registration statement of which this prospectus is a part is being filed pursuant to the exercise of such right. In addition, pursuant to the Registration Rights Agreement, the Majority Holders are able to make up to two written requests (each, an “Underwritten Shelf Takedown Demand”) to distribute all or a portion of their Registrable Securities in an Underwritten Offering (as defined in the Registration Rights Agreement); provided, however, that if (i) the Shelf Registration Statement is not effective or otherwise not available for the offer or sale of Registrable Securities for at least 18 months between February 1, 2019 and January 31, 2021, then the Majority Holders will have the right to one additional Underwritten Shelf Takedown Demand and (ii) if the total number of Registrable Securities to be sold or otherwise distributed in any such Underwritten Offering by the Participating Holders (as defined in the Registration Rights Agreement) is cutback to less than 50% of the Registrable Securities requested for distribution by the Participating Holders, then such Underwritten Offering shall not be counted for purposes of the Majority Holders’ right to two Underwritten Shelf Takedown Demands.stockholders. Pursuant to the Registration RightsStockholders Agreement, the Companywe will pay all Registration Expenses (as defined in the Registration Rights Agreement). The Registration Rights Agreement contains customary indemnification and contribution provisions by the Company for the benefit of the other partiesexpenses relating to the Registration Rights Agreement; each such party has also agreed to indemnifyregistration and offering of these shares, except that the Company in respect of information provided in writing by such party to the Company expressly for use in connection with such registrationselling stockholders will pay any underwriting discounts or offering; provided that such indemnificationcommissions. However, we will be limited to the net proceeds actually received by such party from the sale of Registrable Securities. The foregoing description of the Registration Rights Agreement does not purport to be complete and is qualified in its entirety by reference to the text of the form of the Registration Rights Agreement, which is incorporated by reference herein.

The shares covered hereby may be offered from time to time by the Selling Stockholders. The Selling Stockholders may sell some, all or none of their shares covered hereby. We do not know how long the Selling Stockholders will hold the offered shares before selling them, and, other than as set forth herein, we currently have no agreements, arrangements or understandings with the Selling Stockholders regarding the sale or other disposition ofreceive any of the shares. In addition, except as otherwise disclosed herein,proceeds from the Selling Stockholders do not have, and withinsales of common stock by the past three years have not had, any position, office or other material relationship with us.selling stockholders.

When we refer to the “Selling Stockholders”“selling stockholders” in this prospectus, we mean the individual and the entitiespersons listed in the table below and the pledgees, donees, transferees, assignees, successors and others who later come to hold any of the offered shares other than through a public sale.

The following table sets forth, as of the date of this prospectus, the name of the Selling Stockholders,selling stockholders, the number of shares of common stock that the Selling Stockholdersselling stockholders may offer pursuant to this prospectus and the shares of our common stock owned by the Selling Stockholderselling stockholders before and after the offering. Information with respect to beneficial ownership is based on information obtained from such Selling Stockholder.selling stockholders. The percentage of common stock owned by the Selling Stockholders,selling stockholders, both before and after the offering, is based on 29,362,924the 30,573,388 shares of common stock outstanding as of September 16, 2019.March 31, 2022. Information with respect to shares beneficially owned after the offering assumes the sale of all the shares offered and no other purchases or sales of common stock.

 

   Shares Owned
Before the Offering
       Shares Owned
After the Offering
 

Name

  Number of
Shares
   Percentage of
Outstanding
Shares
   Number of
Shares Being
Offered
   Number of
Shares
   Percentage
of
Outstanding
Shares
 

Warren Lynn Frazier(1)

   4,738,514    16.1%    4,738,514    —      —   

Garrett Lynn Frazier 2018 DG Trust(2)

   56,118          *    56,118    —      —   

Derrick Chase Frazier 2018 DG Trust(2)

   56,118          *    56,118    —      —   

Frazier Family Foundation, Inc.(3)

   149,250          *    149,250    —      —   
   Shares Owned
Before the Offering
      Shares Owned
After the Offering
 

Name

  Number of
Shares
   Percentage of
Outstanding
Shares
  Number of
Shares Being
Offered
   Number of
Shares
   Percentage of
Outstanding
Shares
 

Autumn Plecher, LP(1)(2)

   36,403    *   36,403    —      —   

Curtis F. Harrell(3)

   30,700    *   481    30,219    * 

Edward Bruce Morgan(4)

   136,051    *   75,420    60,631    * 

Ernie L. Danner(2)

   135,547    *   69,445    66,102    * 

Gary L. Thomas(5)

   55,065    *   10,237    44,828    * 

Harrell Ventures, LLC(3)(6)

   37,318    *   37,318    —      —   

Mark E. Baldwin(7)

   34,720    *   9,892    24,828    * 

SCF(8)

   9,086,884    29.7  9,086,884    —      —   

 

*

Less than 1%.

(1)

Warren Lynn Frazier is an employeeErnie L. Danner owns 100% of Autumn Plecher, LP and has voting and investment control over the Company.securities owned by Autumn Plecher, LP.

(2)

Leah Schexnayder-Delaune, as trusteeMr. Danner is the Chairman of the Garrett Lynn Frazier 2018 DG TrustBoard of Directors of the Company and has served the Derrick Chase Frazier 2018 DG Trust, is the natural person with voting and dispositive power over these shares of common stock. Leah Schexnayder-Delaune disclaims beneficial ownership of these securities.Company in such capacity since February 2017.

(3)

Warren Lynn Frazier, Garrett Lynn FrazierMr. Harrell is a member of the Board of Directors of the Company and Derrick Chase Frazier are membershas served the Company in such capacity since February 2017.

(4)

Mr. Morgan has served the Company in various positions, including as President, Production Solutions from March 2017 to August 2019, President, Administration and Operations from August 2019 to May 2020, and President, Wireline since May 2020.

(5)

Mr. Thomas is a member of the Board of Directors of the Company and has served the Company in such capacity since March 2013.

(6)

Curtis F. Harrell is the sole member of Harrell Ventures, LLC and has voting and investment control over the securities owned by Harrell Ventures, LLC.

(7)

Mr. Baldwin is a member of the Board of Directors of the Company and has served the Company in such capacity since May 2013.

(8)

Consists of 7,528,550 shares of our common stock held by SCF-VII, L.P. and 1,558,334 shares of our common stock held by SCF-VII(A), L.P. The board of directors of Frazier Family Foundation, Inc.SCF GP LLC (“SCF GP”), the ultimate general partner of SCF-VII, L.P. and are the natural persons withSCF-VII(A), L.P. (collectively, “SCF”), has voting and dispositive powerinvestment control over the securities owned by SCF. The board of directors of SCF GP consists of David C. Baldwin, Anthony F. DeLuca, L.E. Simmons and Andrew L. Waite. David C. Baldwin and Andrew L. Waite also serve on the Company’s Board of Directors (since February 2017 and February 2013, respectively). Because SCF-VII, L.P. and SCF-VII(A), L.P. are controlled by SCF GP, these entities may be considered to be a group for purposes of Section 13(d)(3) under the Exchange Act. As a group, SCF beneficially owns 9,086,884 shares of our common stock. Warren Lynn Frazier, Garrett Lynn Frazier and Derrick Chase Frazier disclaim beneficial ownership of these securities.stock in the aggregate.

PLAN OF DISTRIBUTION

The offered shares are being registeredWe may sell the securities to permitone or more underwriters for public offering and sale by them or may sell the Selling Stockholders (which as used herein means the entities listedsecurities to investors directly or through agents. Any underwriter or agent involved in the table includedoffer and sale of the securities will be named in “Selling Stockholders”the applicable prospectus supplement. Underwriters and agents in any distribution contemplated hereby may from time to time be designated on terms to be set forth in the pledgees, donees, transferees, assignees, successorsapplicable prospectus supplement.

Underwriters or agents could make sales in privately negotiated transactions and others who later comeany other method permitted by law. Securities may be sold in one or more of the following transactions:

block transactions (which may involve crosses) in which a broker-dealer may sell all or a portion of the securities as agent but may position and resell all or a portion of the block as principal to holdfacilitate the transaction;

purchases by a broker-dealer as principal and resale by the broker-dealer for its own account pursuant to a prospectus supplement;

a special offering, an exchange distribution or a secondary distribution in accordance with applicable NYSE or other stock exchange rules;

ordinary brokerage transactions and transactions in which a broker-dealer solicits purchasers;

“at the market” offerings or sales “at the market,” within the meaning of Rule 415(a)(4) of the Securities Act, to or through a market maker or into an existing trading market on an exchange or otherwise;

sales in other ways not involving market makers or established trading markets, including direct sales to purchasers; or

through a combination of any of these methods.

Underwriters or agents may offer and sell the offered sharessecurities at a fixed price or prices, which may be changed in relation to the prevailing market prices at the time of sale or at negotiated prices. We also may, from time to time, authorize underwriters acting as a result of a transfer not involving a public sale)our agents to offer and sell the offered sharessecurities upon the terms and conditions as are set forth in the applicable prospectus supplement. In connection with the sale of securities, underwriters or agents may be deemed to have received compensation from us in the form of underwriting discounts or commissions and may also receive commissions from purchasers of securities for whom they may act as agent. Broker-dealers may also receive compensation from purchasers of these securities which is not expected to exceed those customary in the types of transactions involved. Underwriters or agents may sell securities to or through dealers, and the dealers may receive compensation in the form of discounts, concessions or commissions from the underwriters or the agents and/or commissions from the purchasers for whom they may act as agent.

Any underwriting compensation paid by us to underwriters or agents in connection with the offering of securities, and any discounts, concessions or commissions allowed by underwriters or agents to participating dealers, will be set forth in the applicable prospectus supplement. Underwriters, dealers and agents participating in the distribution of the securities may be deemed to be underwriters, and any discounts and commissions received by them and any profit realized by them on resale of the securities may be deemed to be underwriting discounts and commissions, under the Securities Act.

We may have agreements with the underwriters, dealers, agents and remarketing firms to indemnify them against certain civil liabilities, including liabilities under the Securities Act, or to contribute with respect to payments that the underwriters, dealers, agents or remarketing firms may be required to make. Underwriters, dealers, agents and remarketing firms may be customers of, engage in transactions with or perform services for us in the ordinary course of their businesses.

Any securities issued hereunder (other than common stock) will be new issues of securities with no established trading market. Any underwriters or agents to or through whom such securities are sold by us for public offering and sale may make a market in such securities, but such underwriters or agents will not be obligated to do so and may discontinue any market making at any time without notice. We cannot assure you as to the liquidity of the trading market for any such securities.

The underwriters and the agents and their respective affiliates may be customers of, engage in transactions with and perform services for us in the ordinary course of business.

The selling stockholders may, from time to time, after the datesell, transfer, distribute or otherwise dispose of this prospectus.certain of their shares of common stock on any stock exchange, market or trading facility on which shares of our common stock are traded or in private transactions. These dispositions may be at fixed prices, at prevailing market prices at the time of sale, at prices related to the prevailing market price, at varying prices determined at the time of sale, or at negotiated prices. We will not receive any of the proceeds from the offering by the Selling Stockholders of the offered shares. We will bear the fees and expenses incurred by us in connection with our obligation to register the offered securities pursuant to the Registration Rights Agreement. If the shares are sold through underwriters or broker-dealers, we will not be responsible for underwriting discounts or commissions or agents’ commissions.

The Selling Stockholdersselling stockholders may use any one or more of the following methods when disposing of their shares or interests therein:

on the NYSE or any other national securities exchange or U.S. inter-dealer system of a registered national securities association on which our common stock may be listed or quoted at the time of sale;stock:

 

ordinary brokerage transactions and transactions in which the broker-dealer solicits purchasers;

 

one or more underwritten offerings;

 

block trades in which the broker-dealer will attempt to sell the shares of common stock as agent, but may position and resell a portion of the block as principal to facilitate the transaction;

 

purchases by a broker-dealer as principal and resale by the broker-dealer for its account;accounts;

 

an exchange distribution in accordance with the rules of the applicable exchange;

 

privately negotiated transactions;

 

short sales effected after the date the registration statement of which this prospectus is a part is declared effective by the SEC;distributions to their members, partners or shareholders, including in-kind distributions;

 

through the writing or settlement of options or other hedging transactions, whether through an options exchange or otherwise;

in market transactions, including transactions on a national securities exchange or quotations service or over-the-counter market;

directly to one or more purchasers;

through agents; and

 

in anybroker-dealers may agree with the selling stockholders to sell a specified number of such shares of common stock at a stipulated price per share; or

a combination of the above or by any other legally available means.such methods of sale.

A Selling Stockholderselling stockholder that is an entity may elect to make an in-kind distribution of common stock to its members, partners or stockholders pursuant to the registration statement of which this prospectus is a part by delivering a prospectus, as amended or supplemented. To the extent that such members, partners or stockholders are not affiliates of ours, such members, partners or stockholders would thereby receive freely tradable shares of common stock pursuant to the distribution effected through this registration statement.

The selling stockholders may, from time to time, pledge or grant a security interest in some of the shares of our common stock owned by itthem and, if the Selling Stockholdera selling stockholder defaults in the performance of its secured obligations, the pledgees or secured parties may offer and sell thesuch shares of common stock from time to time, under this prospectus, or under an amendment or supplement to this prospectus amending the list of the Selling Stockholdersselling stockholders to include the pledgee, transferee or other successors-in-interest as the selling stockholders under this prospectus.

The selling stockholders also may transfer shares of our common stock in other circumstances, in which case the transferees, pledgees or other successors in interest aswill be the Selling Stockholders underselling beneficial owners for purposes of this prospectus.

In connection with the sale of shares of our common stock, or interests therein, a Selling Stockholderthe selling stockholders may enter into hedging transactions with broker-dealers or other financial institutions, which may in turn engage in short sales of our common stock in the course of hedging the positions they assume. A Selling Stockholder may also sell our common stock short and deliver these securities to close out their short positions, or loan or pledge our common stock to broker-dealers that in turn may sell these securities. A Selling StockholderThe selling stockholders may also enter into option or other transactions with broker-dealers or other financial institutions or acquire one or more derivative securities that require the delivery to such broker-dealer or other financial institution of shares of our common stock offered by this prospectus, which shares such broker-dealer or other financial institution may resell pursuant to this prospectus (as supplemented or amended to reflect such transaction). A Selling Stockholder also may transfer the shares of common stock in other circumstances, in which case the transferees, pledgees or other successors in interest will be the selling beneficial owners for purposes of this prospectus.

The Selling Stockholders also may resell a portion of the offered shares in open market transactions in reliance upon Rule 144 under the Securities Act, provided that they meet the criteria and conform to the requirements of that rule, or pursuant to other available exemptions from the registration requirements of the Securities Act.

The Selling Stockholdersselling stockholders and any underwriters, broker-dealers or agents that participate in the sale of shares of our common stock or interests therein may be deemed “underwriters” within the meaning of Section 2(11) of the Securities Act. Any discounts, commissions, concessions or profit they earn on any resale of theshares of our common stock may be deemed underwriting discounts and commissions under the Securities Act. If the Selling Stockholders are “underwriters”any selling stockholders is an “underwriter” within the meaning of Section 2(11) of the Securities Act, then the Selling Stockholdersselling stockholders will be subject to the prospectus delivery requirements of the Securities Act. We have advised the selling stockholders that the anti-manipulation rules of Regulation M under the Exchange Act may apply to sales of securities in the market and to the activities of the selling stockholders and their affiliates. In addition, we will make copies of this prospectus available to the selling stockholders for the purpose of satisfying the prospectus delivery requirements of the Securities Act. Underwriters and their controlling persons, dealers and agents may be entitled, under agreements entered into with us and the Selling Stockholders,selling stockholders, to indemnification against and contribution toward specific civil liabilities, including liabilities under the Securities Act.

To the extent required, the common stock to be sold, the respective purchase prices and public offering prices, the names of any agents, dealers or underwriters, and any applicable discounts, commissions, concessions or other compensation with respect to a particular offer will be set forth in an accompanying prospectus supplement or, if appropriate, a post-effective amendment to the registration statement that includes this prospectus.

To facilitate the offering of theshares of our common stock offered by the Selling Stockholders,selling stockholders, certain persons participating in the offering may engage in transactions that stabilize, maintain or otherwise affect the price of our common stock. This may include over-allotments or short sales, which involve the sale by persons participating in the offering of more shares of common stock than were sold to them. In these circumstances, these persons would cover such over-allotments or short positions by making purchases in the open market or by exercising their over-allotment option, if any. In addition, these persons may stabilize or maintain the price of our common stock by bidding for or purchasing shares of common stock in the open market or by imposing penalty bids, whereby selling concessions allowed to dealers participating in the offering may be reclaimed if shares of common stock sold by them are repurchased in connection with stabilization transactions. The effect of these transactions may be to stabilize or maintain the market price of our common stock at a level above that which might otherwise prevail in the open market. These transactions may be discontinued at any time.

To the extent required, our common stock to be sold, the respective purchase prices and public offering prices, the names of any agent, dealer or underwriter, and any applicable discounts, commissions, concessions or other compensation with respect to a particular offer will be set forth in an accompanying prospectus supplement or, if appropriate, a post-effective amendment to the registration statement that includes this prospectus.

The selling stockholders also may in the future resell a portion of our common stock in open market transactions in reliance upon Rule 144 under the Securities Act, provided that they meet the criteria and conform to the requirements of that rule, or pursuant to other available exemptions from the registration requirements of the Securities Act.

The aggregate proceeds to the selling stockholders from the sale of shares of our common stock offered by them will be the purchase price of such shares of our common stock less discounts or commissions, if any. The selling stockholders reserve the right to accept and, together with their agents from time to time, to reject, in whole or in part, any proposed purchase of share of our common stock to be made directly or through agents.

We will not receive any of the proceeds from any offering by the selling stockholders. We are required to pay all fees and expenses incident to the registration of shares of our common stock to be offered and sold pursuant to this prospectus. The selling stockholders will pay any underwriting fees, discounts or commissions.

DESCRIPTION OF COMMON STOCK

The following summary description of our common stock does not purport to be complete and is subject to and qualified in its entirety by reference to the Delaware General Corporation Law (the “DGCL”) and to our certificate of incorporation and bylaws. For a more complete understanding of our common stock, we encourage you to read carefully this entire prospectus, as well as our certificate of incorporation and our bylaws, copies of which are incorporated by reference as exhibits to the registration statement of which this prospectus is a part.

General

We are currently authorized to issue up to 120,000,000 shares of our common stock. Except as provided by law or in a preferred stock designation, holders of our common stock are entitled to one vote for each share held of record on all matters submitted to a vote of the stockholders. Because holders of our common stock have the exclusive right to vote for the election of directors and do not have cumulative voting rights, the holders of a majority of the shares of our common stock can elect all of the members of the board of directors standing for election, subject to the rights, powers and preferences of any outstanding series of preferred stock.

Subject to the rights and preferences of any preferred stock that we may issue in the future, the holders of our common stock are entitled to receive dividends as may be declared by our board of directors and all of our assets available for distribution to holders of our common stock in liquidation, pro rata, based on the number of shares held. There are no redemption, conversion or sinking fund provisions applicable to our common stock.

Subject to the provisions of our certificate of incorporation and legal limitations, our board of directors has the authority, without further vote or action by our stockholders, to issue up to 20,000,000 shares of preferred stock in one or more series and to fix the rights, preferences, privileges and restrictions of our preferred stock, including provisions related to dividends, conversion, voting, redemption, liquidation and the number of shares constituting the series or the designation of that series, which may be superior to those of our common stock. As of the date of this prospectus, there are no shares of preferred stock outstanding. The issuance of shares of preferred stock by our board of directors as described above may adversely affect the rights of the holders of our common stock. For example, preferred stock may rank prior to our common stock as to dividend rights, liquidation preference or both, may have full or limited voting rights and may be convertible into shares of our common stock.

Anti-Takeover Effects of Provisions of Our Certificate of Incorporation, our Bylaws and Delaware Law

Some provisions of the DGCL, our certificate of incorporation and our bylaws could make certain change of control transactions more difficult, including acquisitions of us by means of a tender offer, a proxy contest or otherwise, as well as removal of our incumbent officers and directors. These provisions may also have the effect of preventing changes in our management. It is possible that these provisions could make it more difficult to accomplish or could deter transactions that stockholders may otherwise consider to be in their best interest or in our best interests, including transactions that might result in a premium over the market price for our shares. Therefore, these provisions could adversely affect the price of our common stock.

These provisions, summarized below, are intended to discourage coercive takeover practices and inadequate takeover bids. These provisions are also designed to encourage persons seeking to acquire control of us to first negotiate with our board of directors. We believe that the benefits of increased protection and our potential ability to negotiate with the proponent of an unsolicited proposal to acquire or restructure us outweigh the disadvantages of discouraging these proposals because, among other things, negotiation of these proposals could result in an improvement of their terms.

Opt Out of Section 203 of the DGCL

In our certificate of incorporation, we have elected not to be subject to the provisions of Section 203 of the DGCL regulating corporate takeovers until the date on which the SCF Group (as defined therein) is no longer the

holder of at least 15% of our outstanding common stock. On and after such date, we will be subject to the provisions of Section 203 of the DGCL. In general, those provisions prohibit a Delaware corporation, including those whose securities are listed for trading on the NYSE, from engaging in any business combination with any interested stockholder for a period of three years following the date that the stockholder became an interested stockholder, unless: (a) the transaction is approved by the board of directors before the date the interested stockholder attained that status, (b) upon consummation of the transaction that resulted in the stockholder becoming an interested stockholder, the interested stockholder owned at least 85% of the voting stock of the corporation outstanding at the time the transaction commenced, or (c) on or after the date the interested stockholder attained that status, the business combination is approved by the board of directors and authorized at a meeting of stockholders by at least two-thirds of the outstanding voting stock that is not owned by the interested stockholder.

Our Certificate of Incorporation and Bylaws

Among other things, our certificate of incorporation and/or bylaws:

establish advance notice procedures with regard to stockholder proposals relating to the nomination of candidates for election as directors or new business to be brought before meetings of our stockholders. These procedures provide that notice of stockholder proposals must be timely given in writing to our corporate secretary prior to the meeting at which the action is to be taken. Generally, to be timely, notice must be received at our principal executive offices not less than 90 days nor more than 120 days prior to the first anniversary date of the annual meeting for the preceding year’s annual meeting. Our bylaws specify the requirements as to form and content of all stockholders’ notices;

authorize our board of directors to issue undesignated preferred stock. This ability makes it possible for our board of directors to issue, without stockholder approval, preferred stock with voting or other rights or preferences that could impede the success of any attempt to change control of us;

provide that the authorized number of directors may be changed only by resolution of the board of directors;

provide that all vacancies, including newly created directorships, may, except as otherwise required by law or, if applicable, the rights of holders of a series of preferred stock, be filled by the affirmative vote of a majority of the total number of directors then in office, even if less than a quorum;

provide that any action required or permitted to be taken by the stockholders must be effected at a duly called annual or special meeting of stockholders and may not be effected by any consent in writing in lieu of a meeting of such stockholders, subject to the rights of the holders of any series of preferred stock with respect to such series;

provide that special meetings of our stockholders may only be called by a majority of the total number of directors;

provide that our board of directors be divided into three classes of directors, with each class as nearly equal in number as possible, serving staggered three-year terms, other than directors who may be elected by holders of preferred stock, if any;

provide that we renounce any interest or expectancy in any business opportunity (existing and future) that involves any aspect of the energy business or industry and that may be from time to time presented to SCF or any director or officer of the corporation who is also an employee, partner, member, manager, officer or director of any SCF entity, and that such persons have no obligation to offer us those investments or opportunities;

provide that our certificate of incorporation and bylaws may be amended by the affirmative vote of the holders of at least two-thirds of our then outstanding common stock (except with respect to provisions relating to the renouncement business opportunities, which require approval of at least 80% of the voting power of the outstanding stock entitled to vote thereon);

a member of our board of directors may only be removed for cause and only by the affirmative vote of the holders of at least two-thirds of our then outstanding common stock; and

unless we consent in writing to the selection of an alternative forum, the Court of Chancery of the State of Delaware will, to the fullest extent permitted by applicable law, be the sole and exclusive forum for (i) any derivative action or proceeding brought on our behalf, (ii) any action asserting a claim of breach of a fiduciary duty owed by any of our directors, officers, employees or agents to us or our stockholders, (iii) any action asserting a claim against us or any director or officer or other employee of ours arising pursuant to any provision of the DGCL, our certificate of incorporation or our bylaws, or (iv) any action asserting a claim against us or any director or officer or other employee of ours that is governed by the internal affairs doctrine, in each such case subject to such Court of Chancery having personal jurisdiction over the indispensable parties named as defendants therein. Although we believe these provisions benefit us by providing increased consistency in the application of Delaware law for the specified types of actions and proceedings, the provisions may have the effect of discouraging lawsuits against our directors, officers, employees and agents.

Listing

Our common stock is listed on the NYSE under the symbol “NINE.”

DESCRIPTION OF PREFERRED STOCK

General

Our certificate of incorporation provides that we may issue up to 20,000,000 shares of preferred stock, $0.01 par value per share. As of the date of this prospectus, we had no outstanding shares of preferred stock.

Preferred stock may be issued independently or together with any other securities and may be attached to or separate from other securities. The following description of the preferred stock sets forth general terms and provisions of the preferred stock to which any prospectus supplement may relate. The statements below describing the preferred stock are in all respects subject to and qualified in their entirety by reference to the applicable provisions of our certificate of incorporation and bylaws and any applicable designation designating terms of a series of preferred stock.

Terms

Our certificate of incorporation authorizes our board of directors, subject to any limitations prescribed by law, without further stockholder approval, to establish and to issue up to 20,000,000 shares of preferred stock in one or more series from time to time. Each series of preferred stock will cover the number of shares and will have the powers, preferences, rights, qualifications, limitations and restrictions determined by our board of directors, which may include, among others, dividend rights, liquidation preferences, voting rights, conversion rights, preemptive rights and redemption rights. Except as provided by law or in a preferred stock designation, the holders of preferred stock will not be entitled to vote at or receive notice of any meeting of stockholders.

The applicable prospectus supplement will describe the terms of the preferred stock in respect of which this prospectus is being delivered, including the following:

the series, the number of shares offered and the liquidation value of the preferred stock;

the price at which the preferred stock will be issued;

the dividend rate, the dates on which the dividends will be payable and other terms relating to the payment of dividends on the preferred stock;

the voting rights of the preferred stock;

whether the preferred stock is redeemable or subject to a sinking fund, and the terms of any such redemption or sinking fund;

whether the preferred stock is convertible or exchangeable for any other securities, and the terms of any such conversion;

any listing of the preferred stock on any securities exchange; and

any additional rights, preferences, qualifications, limitations and restrictions of the preferred stock.

Registrar and Transfer Agent

We will name the registrar and transfer agent for the preferred stock in the applicable prospectus supplement.

DESCRIPTION OF WARRANTS

We may issue warrants for the purchase of common stock or preferred stock and may issue warrants independently or together with common stock or preferred stock or attached to, or separate from, such securities. We will issue each series of warrants under a separate warrant agreement between us and a bank or trust company as warrant agent, as specified in the applicable prospectus supplement. The form of warrant agreement and the form of the warrant certificate will be filed with the SEC and incorporated by reference as an exhibit to the registration statement of which this prospectus is a part.

The warrant agent will act solely as our agent in connection with the warrants and will not act for or on behalf of warrant holders. The following sets forth certain general terms and provisions of the warrants that may be offered under this registration statement. Further terms of the warrants and the applicable warrant agreement will be set forth in the applicable prospectus supplement.

The applicable prospectus supplement will describe the terms of the warrants in respect of which this prospectus is being delivered, including, where applicable, the following:

the title of such warrants;

the aggregate number of such warrants;

the price or prices at which such warrants will be issued;

the type and number of securities purchasable upon exercise of such warrants;

the designation and terms of the other securities, if any, with which such warrants are issued and the number of such warrants issued with each such offered security;

the date, if any, on and after which such warrants and the related securities will be separately transferable;

the price at which each security purchasable upon exercise of such warrants may be purchased;

the date on which the right to exercise such warrants shall commence and the date on which such right shall expire;

the minimum or maximum amount of such warrants that may be exercised at any one time;

information with respect to book-entry procedures, if any;

any anti-dilution protection; and

any other material terms of such warrants, including terms, procedures and limitations relating to the transferability, exercise and exchange of such warrants.

Warrant certificates will be exchangeable for new warrant certificates of different denominations and warrants may be exercised at the corporate trust office of the warrant agent or any other office indicated in the applicable prospectus supplement. Prior to the exercise of their warrants, holders of warrants will not have any of the rights of holders of the securities purchasable upon such exercise or to any dividend payments or voting rights as to which holders of the shares of common stock or preferred stock purchasable upon such exercise may be entitled.

Each warrant will entitle the holder to purchase for cash such number of shares of common stock or preferred stock, at such exercise price as shall, in each case, be set forth in, or be determinable as set forth in, the applicable prospectus supplement relating to the warrants offered thereby. After the expiration date set forth in applicable prospectus supplement, unexercised warrants will be void.

Warrants may be exercised as set forth in the applicable prospectus supplement relating to the warrants. Upon receipt of payment and the warrant certificate properly completed and duly executed at the corporate trust office of the warrant agent or any other office indicated in the applicable prospectus supplement, we will, as soon as practicable, forward the securities purchasable upon such exercise. If less than all of the warrants are presented for exercise with respect to a warrant certificate, a new warrant certificate will be issued for the remaining amount of warrants.

DESCRIPTION OF RIGHTS

We may issue rights to our stockholders for the purchase of shares of our common stock or preferred stock. Each series of rights will be issued under a separate rights agreement to be entered into between us and a bank or trust company, as rights agent, all as set forth in the prospectus supplement relating to the particular issue of rights. The rights agent will act solely as our agent in connection with the certificates relating to the rights of such series and will not assume any obligation or relationship of agency or trust for or with any holders of rights certificates or beneficial owners of rights. The form of rights agreement and the rights certificates relating to each series of rights will be filed with the SEC and incorporated by reference as an exhibit to the registration statement of which this prospectus is a part.

The applicable prospectus supplement will describe the terms of the rights to be issued, including the following, where applicable:

the date for determining the stockholders entitled to the rights distribution;

the aggregate number of shares of common stock or preferred stock purchasable upon exercise of such rights and the exercise price;

the aggregate number of rights being issued;

the date, if any, on and after which such rights may be transferable separately;

the date on which the right to exercise such rights shall commence and the date on which such right shall expire; and

any other terms of such rights, including terms, procedures and limitations relating to the distribution, exchange and exercise of such rights.

LEGAL MATTERS

Kirkland & Ellis LLP, Houston, Texas, will pass upon the validity of the common stock offered hereby on our behalf.securities we are offering under this prospectus. If the validity of any legal matters relating to offerings made in connection with this prospectus aresecurities is also passed upon by counsel for the underwriters dealers or agents, suchof an offering of those securities, that counsel will be named in the prospectus supplement relating to any suchthat offering.

EXPERTS

The financial statements incorporated in this prospectus by reference to the Annual Report on Form10-K for the year ended December 31, 20182021, have been so incorporated in reliance on the report (which contains an emphasis of a matter paragraph relating to Nine Energy Service, Inc.’s liquidity and management’s plans, as described in Note 1 to the financial statements) of PricewaterhouseCoopers LLP, an independent registered public accounting firm, given on the authority of said firm as experts in auditing and accounting.

The audited historical financial statements of Magnum included as Exhibit 99.1 and Exhibit 99.2 of Amendment No. 1 to the Current Report on Form8-K filed by the Company on January 10, 2019 have been incorporated in this prospectus in reliance on the report of Fisher, Herbst & Kemble, P.C., an independent public accounting firm, given on the authority of said firm as experts in auditing and accounting.

WHERE YOU CAN FIND MORE INFORMATION

We file annual, quarterly and current reports, proxy statements and other information with the SEC.OurSEC. Our SEC filings are available to the public through the Internet at the SEC’s website at http://www.sec.gov.

We also make available free of charge on our website atwww.nineenergyservice.comat www.nineenergyservice.com all of the documents that we file with the SEC as soon as reasonably practicable after we electronically file those documents with the SEC. Information contained on, or that can be accessed through, our website is not incorporated by reference into this prospectus, and you should not consider such information as part of this prospectus.

This prospectus is part of a registration statement that we filed with the SEC and does not contain all of the information in the registration statement. The full registration statement, including exhibits to the registration statement, provides additional information about us and the common stock offered under this prospectus and may be obtained from the SEC or us, as provided above.

INCORPORATION OF CERTAIN INFORMATION BY REFERENCE

The SEC allows us to “incorporate by reference” information into this prospectus, which means that we can disclose important information about us by referring you to another document filed separately with the SEC. The information incorporated by reference is considered to be a part of this prospectus. We have previously filed the following documents with the SEC and are incorporating them by reference into this prospectus (other than portions of these documents that are either (i) described in paragraph (e) of Item 201 of RegistrationS-K or or paragraphs (d)(1)-(3) and (e)(5) of Item 407 of RegulationS-K or or (ii) deemed to have been furnished and not filed in accordance with SEC rules, including pursuant to Item 2.02 or Item 7.01 of any Current Report on Form8-K (including (including any financial statements or exhibits relating thereto furnished pursuant to Item 9.01), unless otherwise indicated therein):

 

  

our Annual Report onForm10-K for the year ended December 31, 2018,2021, filed with the SEC on March 7, 2019;

our Quarterly Report onForm10-Q for the quarter ended March 31, 2019, filed with the SEC on May 8, 2019;

our Quarterly Report onForm10-Q for the quarter ended June 30, 2019, filed with the SEC on August 12, 2019;2022;

 

  

our Current ReportsReport on Form8-K filed with the SEC onJanuary 10, 2019,May 8, 2019 andSeptember 6, 2019;7, 2022;

 

  

our Definitive Proxy Statement onSchedule 14A, filed with the SEC on AprilMarch 15, 2019;2022; and

 

  

the description of our common stock included in the Registration Statement onForm8-A, filed with the SEC on January 16, 2018 (File(File No. 001-38347), including including any subsequent amendment or any report filed for the purpose of updating such description.

We also incorporate by reference any future filings made by us with the SEC pursuant to Sections 13(a), 13(c), 14 or 15(d) of the Exchange Act (other than portions of these documents that are either (i) described in paragraph (e) of Item 201 of RegistrationS-K or or paragraphs (d)(1)-(3) and (e)(5) of Item 407 of RegulationS-K or or (ii) deemed to have been furnished and not filed in accordance with SEC rules, including pursuant to Item 2.02 or Item 7.01 of any Current Report on Form8-K (including (including any financial statements or exhibits relating thereto furnished pursuant to Item 9.01), unless otherwise indicated therein) after the date on which the registration statement of which this prospectus forms a part was initially filed with the SEC and prior to the effectiveness of the registration statement, and all such documents filed after the date of this prospectus and before the termination of the offering under this prospectus. The most recent information that we file with the SEC automatically updates and supersedes more dated information.

You can obtain a copy of any documents that are incorporated by reference in this prospectus or any prospectus supplement at no cost, by writing or telephoning us at:

Nine Energy Service, Inc.

2001 Kirby Drive, Suite 200

Houston, Texas 77019

(281)730-5100

Attention: Investor Relations

PART II

II—INFORMATION NOT REQUIRED IN PROSPECTUS

Item 14.

Other Expenses of Issuance and Distribution

Item 14. Other Expenses of Issuance and Distribution.

The following table sets forth the various expenses expected to be incurred in connection with the sale and distribution of the securities being registered hereby, other than underwriting discounts and commissions, all of which will be borne by the Company.

 

SEC registration fee

$3,932.94

Accounting fees and expenses

*

Legal fees and expenses

*

Printing expenses

*

Transfer agent’s fees and expenses

*

Miscellaneous expenses

*

Total expenses

$*

SEC registration fee

  $26,287.30 

Accounting fees and expenses

   * 

Legal fees and expenses

   * 

Printing expenses

   * 

Transfer agent’s fees and expenses

   * 

Miscellaneous expenses

   * 
  

 

 

 

Total expenses

  $* 
  

 

 

 

 

*

Estimated expenses not presently known.

Item 15.

Indemnification of Directors and Officers

Item 15. Indemnification of Directors and Officers.

The Company is incorporated under the laws of the State of Delaware. Section 145 of the DGCL provides that a corporation may indemnify directors and officers as well as other employees and individuals against expenses, including attorneys’ fees, judgments, fines and amounts paid in settlement in connection with specified actions, suits and proceedings, whether civil, criminal, administrative or investigative, other than a derivative action by or in the right of the corporation, if they acted in good faith and in a manner they reasonably believed to be in or not opposed to the best interests of the corporation and, with respect to any criminal action or proceeding, had no reasonable cause to believe their conduct was unlawful. A similar standard is applicable in the case of derivative actions, except that indemnification extends only to expenses, including attorneys’ fees, incurred in connection with the defense or settlement of such action and the statute requires court approval before there can be any indemnification where the person seeking indemnification has been found liable to the corporation. The statute provides that it is not exclusive of other indemnification that may be granted by a corporation’s certificate of incorporation, bylaws, disinterested director vote, stockholder vote, agreement or otherwise.

As permitted by Delaware law, the Company’s Third Amended and Restated Certificate of Incorporation, dated January 23, 2018, provides that a director will not be liable to the Company or its stockholders for monetary damages for breach of fiduciary duties to the fullest extent permitted by the Delaware General Corporation Law (“DGCL”(the “DGCL”). Any amendment to, or repeal of, these provisions will not eliminate or reduce the effect of these provisions in respect of any act, omission or claim that occurred or arose prior to that amendment or repeal. In addition, if the DGCL is amended to authorize the further elimination or limitation of the liability of directors, then the liability of a director of the Company, in addition to the limitation on personal liability provided for in the Company’s certificate of incorporation, will be limited to the fullest extent permitted by the amended DGCL. The Company’s Third Amended and Restated Certificate of Incorporation and Fourth Amended and Restated Bylaws provide that the Company will indemnify, and advance expenses to, any officer or director to the fullest extent authorized by the DGCL.

The Company has obtained directors’ and officers’ insurance to cover its directors and officers for certain liabilities.

The Company has entered or will enter into written indemnification agreements with its current and future directors and officers that may be broader than the specific indemnification provisions contained in the DGCL.

 

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These indemnification agreements require the Company, among other things, to indemnify the Company’s directors and officers against liabilities that may arise by reason of their status or service as directors or officers and to advance any expenses incurred as a result of any proceeding against them as to which they could be indemnified. The form of such indemnification agreements is filed as Exhibit 10.10 to the Company’s Amendment No. 2 to Registration Statement onForm S-1 (File No.333-217601)No. 333-217601), filed with with the SEC on May 24, 2017.

The above discussion of Section 145 of the DGCL and of the Company’s Third Amended and Restated Certificate of Incorporation and Fourth Amended and Restated Bylaws is not intended to be exhaustive and is respectively qualified in its entirety by Section 145 of the DGCL, the Company’s Third Amended and Restated Certificate of Incorporation and Fourth Amended and Restated Bylaws.

Item 16. Exhibits.

Item 16.

Exhibits and Financial Statement Schedules

 

Exhibit

Number No.

  

Description

  1.1+1.1*  Form of Underwriting Agreement.Agreement by and among Nine Energy Service, Inc. and the underwriters named therein.
  2.1†Securities Purchase Agreement, dated as of October  15, 2018, by and among Warren Lynn Frazier, Garrett Lynn Frazier 2018 DG Trust, Derrick Chase Frazier 2018 DG Trust, Frazier Family Foundation, Inc., as sellers, Warren Lynn Frazier, solely in his capacity as seller representative, MOTI Holdco, LLC and Nine Energy Canada Inc., as buyers, Nine Energy Service, Inc. and certain other parties named therein (incorporated by reference to Exhibit 2.1 of Nine Energy Service, Inc.’s Current Report on Form8-K filed on October 15, 2018).
  2.2First Amendment to Securities Purchase Agreement, dated June  7, 2019, by and among Warren Lynn Frazier, Garrett Lynn Frazier 2018 DG Trust, Derrick Chase Frazier 2018 DG Trust, and Frazier Family Foundation, Inc., as sellers, MOTI Holdco, LLC and Nine Energy Canada Inc., as buyers, and Nine Energy Service, Inc. (incorporated by reference to Exhibit 2.2 of Nine Energy Service, Inc.’s Quarterly Report on Form10-Q filed with the SEC on August 12, 2019).
  3.14.1  Third Amended and Restated Certificate of Incorporation of Nine Energy Service, Inc., dated January  23, 2018 (incorporated(Incorporated by reference to Exhibit 3.1 of Nine Energy Service, Inc.’s Current Report on Form8-K filed on January 23, 2018).
  3.24.2  Fourth Amended and Restated Bylaws of Nine Energy Service, Inc., dated January  23, 2018 (incorporated(Incorporated by reference to Exhibit 3.2 of Nine Energy Service, Inc.’s Current Report on Form8-K filed on January 23, 2018).
  4.14.3  Form of Common Stock Certificate (incorporated(Incorporated by reference to Exhibit 4.1 of Nine Energy Service, Inc.’sthe Company’s Amendment No.  2 to Registration Statement on FormS-1 filed on May 24, 2017).
  4.24.4*  Second Amended and Restated Stockholders Agreement, dated asForm of February  28, 2017, by and among Nine Energy Service, Inc. and the parties thereto (incorporated by reference to Exhibit 4.2 of Nine Energy Service, Inc.’s Amendment No.  2 to Registration Statement on FormS-1 filed on May 24, 2017).Warrant Certificate.
  4.34.5*  First Amendment to Second Amended and Restated Stockholders Agreement, dated asForm of July  24, 2017, by and among Nine Energy Service, Inc. and the parties thereto (incorporated by reference to Exhibit 4.3 of Nine Energy Service, Inc.’s Amendment No.  3 to Registration Statement on FormS-1 filed on August 14, 2017).Warrant Agreement.
  4.44.6*  RegistrationForm of Rights Agreement, dated as of October  25, 2018, by and among Nine Energy Service, Inc., the former owners of the equity interests of Magnum Oil Tools International, LTD, Magnum Oil Tools Canada Ltd. and Magnum Oil Tools GP, LLC and the other holders that may become party thereto from time to time (incorporated by reference to Exhibit 4.2 of Nine Energy Service, Inc.’s Current Report on Form8-K filed on October 26, 2018).

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Exhibit

Number

Description

Agreement.
  5.1*4.7*Form of Rights Certificate.
  5.1+  Opinion of Kirkland & Ellis LLP.
23.1*23.1+  Consent of PricewaterhouseCoopers LLP.
23.2*Consent of Fisher, Herbst & Kemble, P.C.
23.3*23.2+  Consent of Kirkland & Ellis LLP (included in Exhibit 5.1).
24.1*24.1+  Power of Attorney (included on signature page toof this registration statement).
 107+Filing Fee Table.

 

+*

To be filed, if necessary, by amendment or as an exhibit to a document filed under the Exchange Act and incorporated by reference herein.

Certain schedules and similar attachments have been omitted pursuant to Item 601(a)(5) of RegulationS-K. The Company agrees to furnish a supplemental copy of any omitted schedule or attachment to the SEC upon request.

*+

Filed herewith.

Item 17. Undertakings.

Item 17.

Undertakings

 

(a)

The undersigned registrant hereby undertakes:

 

 (1)

To file, during any period in which offers or sales are being made, a post-effective amendment to this registration statement:

 

 (i)

To include any prospectus required by Sectionsection 10(a)(3) of the Securities Act;Act of 1933;

 

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 (ii)

To reflect in the prospectus any facts or events arising after the effective date of the registration statement (or the most recent post-effective amendment thereof) which, individually or in the aggregate, represent a fundamental change in the information set forth in the Registration Statement.registration statement. Notwithstanding the foregoing, any increase or decrease in volume of securities offered (if the total dollar value of securities offered would not exceed that which was registered) and any deviation from the low or high end of the estimated maximum offering range may be reflected in the form of prospectus filed with the SECCommission pursuant to Rule 424(b) if, in the aggregate, the changes in volume and price represent no more than 20%20 percent change in the maximum aggregate offering price set forth in the “Calculation of Registration Fee” table in the effective registration statement; andstatement.

 

 (iii)

To include any material information with respect to the plan of distribution not previously disclosed in the registration statement or any material change to such information in the Registration Statement;registration statement;

provided, however, that paragraphs (a)(1)(i), (a)(1)(ii) and (a)(1)(iii) above do not apply if the information required to be included in a post-effective amendment by those paragraphs is contained in reports filed with or furnished to the SEC by the registrant pursuant to Section 13 or Section 15(d) of the Exchange Act that are incorporated by reference in the registration statement, or is contained in a form of prospectus filed pursuant to Rule 424(b) that is part of the registration statement.

 

 (2)

That, for the purpose of determining any liability under the Securities Act of 1933, each such post-effective amendment shall be deemed to be a new registration statement relating to the securities offered therein, and the offering of such securities at that time shall be deemed to be the initial bona fide offering thereof.

 

 (3)

To remove from registration by means of a post-effective amendment any of the securities being registered which remain unsold at the termination of the offering.

 

 (4)

That, for the purpose of determining liability under the Securities Act of 1933 to any purchaser:

 

 (i)(A)

Each prospectus filed by the registrant pursuant to Rule 424(b)(3) shall be deemed to be part of the registration statement as of the date the filed prospectus was deemed part of and included in the registration statement; and

 

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 (ii)(B)

Each prospectus required to be filed pursuant to Rule 424(b)(2), (b)(5), or (b)(7) as part of a registration statement in reliance on Rule 430B relating to an offering made pursuant to Rule 415(a)(1)(i), (vii), or (x) for the purpose of providing the information required by Sectionsection 10(a) of the Securities Act of 1933 shall be deemed to be part of and included in the registration statement as of the earlier of the date such form of prospectus is first used after effectiveness or the date of the first contract of sale of securities in the offering described in the prospectus. As provided in Rule 430B, for liability purposes of the issuer and any person that is at that date an underwriter, such date shall be deemed to be a new effective date of the registration statement relating to the securities in the registration statement to which thethat prospectus relates, and the offering of such securities at that time shall be deemed to be the initial bona fide offering thereof.Provided,,however,, that no statement made in a registration statement or prospectus that is part of the registration statement or made in a document incorporated or deemed incorporated by reference into the registration statement or prospectus that is part of the registration statement will, as to a purchaser with a time of contract of sale prior to such effective date, supersede or modify any statement that was made in the registration statement or prospectus that was part of the registration statement or made in any such document immediately prior to such effective date.date; or

(5)

That, for the purpose of determining liability of the registrant under the Securities Act of 1933 to any purchaser in the initial distribution of the securities, the undersigned registrant undertakes that in a primary offering of securities of the undersigned registrant pursuant to this registration statement, regardless of the underwriting method used to sell the securities to the purchaser, if the securities are

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offered or sold to such purchaser by means of any of the following communications, the undersigned registrant will be a seller to the purchaser and will be considered to offer or sell such securities to such purchaser:

(i)

Any preliminary prospectus or prospectus of the undersigned registrant relating to the offering required to be filed pursuant to Rule 424;

(ii)

Any free writing prospectus relating to the offering prepared by or on behalf of the undersigned registrant or used or referred to by the undersigned registrant;

(iii)

The portion of any other free writing prospectus relating to the offering containing material information about the undersigned registrant or its securities provided by or on behalf of the undersigned registrant; and

(iv)

Any other communication that is an offer in the offering made by the undersigned registrant to the purchaser.

 

(b)

The undersigned registrant hereby undertakes that, for purposes of determining any liability under the Securities Act of 1933, each filing of the registrant’s annual report pursuant to Sectionsection 13(a) or Sectionsection 15(d) of the Securities Exchange Act of 1934 (and, where applicable, each filing of an employee benefit plan’s annual report pursuant to section 15(d) of the Securities Exchange Act of 1934) that is incorporated by reference in the registration statement shall be deemed to be a new registration statement relating to the securities offered therein, and the offering of such securities at that time shall be deemed to be the initial bona fide offering thereof.

 

(c)

Insofar as indemnification for liabilities arising under the Securities Act of 1933 may be permitted to directors, officers and controlling persons of the registrant pursuant to the foregoing provisions, or otherwise, the registrant has been advised that in the opinion of the SEC,Securities and Exchange Commission such indemnification is against public policy as expressed in the Securities Act and is, therefore, unenforceable. In the event that a claim for indemnification against such liabilities (other than the payment by the registrant of expenses incurred or paid by a director, officer or controlling person of the registrant in the successful defense of any action, suit or proceeding) is asserted by such director, officer or controlling person in connection with the securities being registered, the registrant will, unless in the opinion of its counsel the matter has been settled by controlling precedent, submit to a court of appropriate jurisdiction the question whether such indemnification by it is against public policy as expressed in the Securities Act and will be governed by the final adjudication of such issue.

 

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SIGNATURES

Pursuant to the requirements of the Securities Act of 1933, the registrant certifies that it has reasonable grounds to believe that it meets all of the requirements for filing onForm S-3 and has has duly caused this registration statement to be signed on its behalf by the undersigned, thereunto duly authorized, in the City of Houston, State of Texas, on September 20, 2019.April 5, 2022.

 

Nine Energy Service, Inc.
By: 

/s/ Ann G. Fox

 Name: Ann G. Fox
 Title: President and Chief Executive Officer

POWER OF ATTORNEY

Each person whose signature appears below appoints Theodore R. Moore, Ann G. Fox and Clinton Roeder,Guy Sirkes, and each of them, any of whom may act without the joinder of the other, as his or her true and lawfulattorneys-in-fact and agents, with full power of substitution and resubstitution, for him or her and in his or her name, place and stead, in any and all capacities, to sign any and all amendments (including post-effective amendments) to this registration statement and any registration statement (including any amendment thereto) for this offering that is to be effective upon filing pursuant to Rule 462(b) under the Securities Act of 1933 and to file the same, with all exhibits thereto, and all other documents in connection therewith, with the Securities and Exchange Commission, granting unto saidattorneys-in-fact and and agents full power and authority to do and perform each and every act and thing requisite and necessary to be done, as fully to all intents and purposes as he or she might or would do in person, hereby ratifying and confirming all that saidattorneys-in-fact and and agents or any of them or their or his or her substitute or substitutes, may lawfully do or cause to be done by virtue hereof.

* * * *

Pursuant to the requirements of the Securities Act of 1933, this registration statement has been signed by the following persons in the capacities indicated on September 20, 2019:the date indicated.

 

Signature

  

Title

Date

/s/ Ann G. Fox

Ann G. Fox

  

President, Chief Executive Officer and Director

(Principal Executive Officer)

April 5, 2022

/s/ Clinton RoederGuy Sirkes

Clinton RoederGuy Sirkes

  

Senior Vice President and Chief Financial Officer

(Principal Financial Officer)

April 5, 2022

/s/ S. Brett Luz

S. Brett Luz

  

Chief Accounting Officer

(Principal Accounting Officer)

April 5, 2022

/s/ Ernie L. Danner

Ernie L. Danner

  

Chairman of the Board of Directors

April 5, 2022

/s/ David C. Baldwin

David C. Baldwin

  

Director

April 5, 2022

/s/ Mark E. Baldwin

Mark E. Baldwin

  

Director

April 5, 2022

 

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Signature

  

Title

Date

/s/ Curtis F. Harrell

Curtis F. Harrell

  

Director

April 5, 2022

/s/ Scott E. Schwinger

Scott E. Schwinger

  

Director

April 5, 2022

/s/ Gary L. Thomas

Gary L. Thomas

  

Director

April 5, 2022

/s/ Andrew L. Waite

Andrew L. Waite

  

Director

April 5, 2022

/s/ Darryl K. Willis

Darryl K. Willis

  

Director

April 5, 2022

 

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