Nine Energy Service filed for Chapter 11 — $320 million in debt wiped out for shareholders. Houston-based oilfield services company now under bankruptcy protection and restructuring.

The Numbers

$320 million in debt. All stockholders: zero. Every share canceled. Complete loss of equity. Company expects to restructure and potentially emerge in about 45 days.

Bloomberg called it: "High leverage and a shrinking business amid a slowdown in drilling programs." Plain English: drilling is slowing, companies are under pressure financially, this isn't just Nine Energy's problem, it's a bigger industry trend.

The Backstory

Nine bought Magnum Oil Tools in 2018, taking on $320 million in debt at 13% interest. Revenue never recovered. Then the drilling slowdown hit. Debt became impossible to service. Now they're under Chapter 11.

For Workers

Some jobs may be impacted. Contracts may be paused or canceled. Vendors may see delays in payments.

The bigger picture: oil at $62/barrel. OPEC+ keeping production frozen. Rig counts dropping. Companies facing financial stress across the industry. This is where the industry stood heading into 2026. The Iran war changed the math — but the structural debt problems in oilfield services don't disappear overnight.