Form 4: Nine Energy Service Exec's Shares Wiped Out Post-Bankruptcy

Nine Energy Service's EVP and COO, David Crombie, saw all his common stock cancelled for no consideration following the company's emergence from Chapter 11 bankruptcy.

Summary

• David Crombie, Executive Vice President and Chief Operating Officer of Nine Energy Service, Inc., reported a change in his beneficial ownership of company common stock.
• On March 4, 2026, 219,996 shares of Nine Energy Service common stock beneficially owned by Mr. Crombie were cancelled.
• This cancellation occurred in connection with Nine Energy Service, Inc.'s emergence from Chapter 11 bankruptcy.
• The shares were cancelled for no consideration, resulting in Mr. Crombie holding 0 shares of common stock following the reported transaction.

Sentiment

Score: 2

Explanation: StockSavvy.ai views this as a highly negative event for existing equity holders, including the reporting executive, as their shares were completely wiped out due to the company's bankruptcy, signifying a total loss of investment value for these specific shares.

Negatives

• David Crombie's 219,996 shares of Nine Energy Service common stock were cancelled.
• The cancellation was for no consideration ($0.00), indicating a complete loss of value for these shares.
• This transaction resulted in Mr. Crombie having zero beneficial ownership of common stock after the company's emergence from bankruptcy.

Risks

• Equity holders, including executives, lost all value in their common stock due to the company's Chapter 11 bankruptcy proceedings, as evidenced by the cancellation of shares for no consideration.

Future Outlook

NA

Industry Context

StockSavvy.ai notes that the cancellation of common stock for no consideration is a typical outcome for existing equity holders when a company undergoes Chapter 11 bankruptcy, as existing equity is often wiped out to satisfy creditors and restructure the balance sheet. This event reflects the severe financial distress Nine Energy Service experienced prior to its reorganization.

Comparison to Industry Standards

• The cancellation of existing common stock for no consideration is a standard outcome in Chapter 11 bankruptcy reorganizations where a company's liabilities exceed its assets, and creditors typically take ownership of the reorganized entity.
• This situation is comparable to other companies that have undergone similar restructurings, such as Seadrill Limited (SDRL) or Valaris plc (VAL), where pre-petition equity was extinguished as part of the reorganization plan.

Legal Proceedings

• The reported transaction is directly related to Nine Energy Service, Inc.'s emergence from Chapter 11 bankruptcy, a significant legal proceeding for corporate restructuring.

Stakeholder Impact

• Shareholders (pre-bankruptcy): Existing common shareholders, including the reporting person, experienced a complete loss of their investment as shares were cancelled for no consideration.
• Company (Nine Energy Service): The emergence from Chapter 11 bankruptcy indicates a restructuring of the company's balance sheet, likely involving new equity issuance to creditors, which aims to provide a more stable financial foundation moving forward.

Key Dates

Recommendation

The cancellation of all common stock for no consideration due to Chapter 11 bankruptcy means that existing shares are worthless. For any investor holding these pre-bankruptcy shares, the recommendation is a strong sell (or rather, an acknowledgment of a complete loss) as there is no value remaining. Any new investment would be in the post-reorganization equity structure, which is not detailed in this filing.

Keywords

Nine Energy Service, NINE, David Crombie, Form 4, beneficial ownership, common stock, bankruptcy, Chapter 11, share cancellation, insider transaction