Form 4: Nine Energy Service Officer's Shares Cancelled Post-Bankruptcy

Theodore R. Moore's 136,873 shares of Nine Energy Service common stock were cancelled for no consideration following the company's emergence from Chapter 11 bankruptcy.

Summary

• Theodore R. Moore, Executive Vice President and General Counsel of Nine Energy Service, Inc., reported a disposition of common stock.
• On March 4, 2026, 136,873 shares of common stock were cancelled.
• The cancellation occurred for no consideration, meaning shareholders received no value for these shares.
• This event is directly linked to Nine Energy Service, Inc.'s emergence from Chapter 11 bankruptcy.
• Following this transaction, Moore beneficially owns 0 shares of common stock.

Sentiment

Score: 2

Explanation: StockSavvy.ai views this as a highly negative event for pre-bankruptcy equity holders, as their shares were cancelled for no consideration, indicating a complete loss of investment due to the company's Chapter 11 restructuring.

Negatives

• The cancellation of 136,873 shares of common stock held by an executive for no consideration.
• This event is a direct consequence of Nine Energy Service, Inc. emerging from Chapter 11 bankruptcy, indicating significant financial distress that led to the restructuring.
• Existing common stock was rendered worthless for pre-bankruptcy shareholders.

Risks

• The company recently emerged from Chapter 11 bankruptcy, which typically results in the cancellation of existing equity and a complete loss for prior shareholders.
• Shareholders of the pre-bankruptcy common stock lost their entire investment.

Management Comments

• On March 4, 2026, all shares of common stock were cancelled for no consideration as Nine Energy Service, Inc. emerged from Chapter 11 bankruptcy.

Industry Context

StockSavvy.ai notes that the oilfield services sector, in which Nine Energy Service operates, has faced significant volatility due to fluctuating energy prices and demand, leading some companies to undergo financial restructuring, such as Chapter 11 bankruptcy, to manage debt and operational challenges. This filing reflects a common outcome for pre-petition equity holders in such restructurings.

Comparison to Industry Standards

• The cancellation of existing common stock for no consideration is a standard outcome for equity holders in a Chapter 11 bankruptcy reorganization where the company's liabilities exceed its assets, and new equity is typically issued to creditors.
• Similar outcomes were observed in the bankruptcies of other energy sector companies like McDermott International or Whiting Petroleum, where pre-petition equity was wiped out.

Legal Proceedings

• Nine Energy Service, Inc. emerged from Chapter 11 bankruptcy on March 4, 2026, which resulted in the cancellation of all existing common stock.

Stakeholder Impact

• Shareholders (pre-bankruptcy): Experienced a complete loss of their investment as common stock was cancelled for no consideration.
• Management (Theodore R. Moore): Lost beneficial ownership of 136,873 shares of common stock.
• Creditors: Likely received new equity or other consideration as part of the Chapter 11 restructuring, becoming the new owners of the reorganized entity.

Key Dates

Recommendation

The filing explicitly states that all common stock was cancelled for no consideration due to the company's emergence from Chapter 11 bankruptcy. This means the pre-bankruptcy equity is worthless, making a 'strong sell' recommendation appropriate for any remaining pre-bankruptcy shares, if they were still tradable, or as a reflection of the complete loss for prior investors. For new investors, this filing indicates the prior equity structure is gone, and any new investment would be in the post-bankruptcy entity, which is not directly covered by this specific Form 4.

Keywords

Nine Energy Service, NINE, Form 4, Theodore R. Moore, beneficial ownership, stock cancellation, Chapter 11 bankruptcy, equity restructuring, officer transaction