Seventy Seven Energy 1Q15: Red Ink Continues to Flow Heavy

red inkSeventy Seven Energy, an oilfield services company with major operations in the northeast, is the old Chesapeake Oilfield Operating division of Chesapeake–spun off into its own company on July 1, 2014 (see Long Labor & Delivery: Seventy Seven Energy Born Yesterday). Yesterday the company released their first quarter 2015 results and said, in essence, “We told you it would be a bloodbath this year, and it is.” The red ink is flowing like the Mississippi at Seventy Seven. Revenues are down a slight 6% in 1Q15 from 1Q14, but down a larger 13% from 4Q14 (just last quarter). Looking at revenue and expenses, in 1Q14 Seventy Seven had a net loss of $18.6 million. In 1Q15 the net loss doubled to $37.6 million. Ouch. They plan to use a $100 million accordion line of credit to keep going. Was there any good news?…

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