SSE 1Q16: Revenue Down 64%, Lost $59M, Quick Bankruptcy Coming

77 energyLast week Seventy Seven Energy (SSE)–the old Chesapeake Oilfield Operating unit that was spun into its own company a few years ago–announced it would soon declare bankruptcy (see Seventy Seven Energy Filing for Bankruptcy, Converting Debt into Stock). The message was “Don’t worry, this will be a quick and relatively painless bankruptcy.” Painless for everyone except existing common stockholders who will see the value of their stock plummet. But we digress. We can see why they announced the bankruptcy last week because yesterday SSE released their first quarter 2016 financial and operating results. Revenue plummeted by 64% in 1Q16 over 1Q15 (and down 19% from 4Q15). The company lost $59.5 million in 1Q16. CEO Jerry Winchester said (our words) given that all the wheels have come off the drilling cart, SSE’s 1Q16 performance wasn’t all that bad. Here’s the announcement (take some Alka Seltzer before reading it if you’re an investor in SSE)…

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