Seventy Seven Energy 2Q15: Red Ink Continues to Flow Heavy
Seventy 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 second quarter 2015 results. The red ink continues to flow like the Mississippi at Seventy Seven. While revenues were down 6% from 1Q14 to 1Q15, revenues tanked in the second quarter, down 46%. Looking at revenue and expenses, Seventy Seven's net income (actually net loss) doubled from 1Q14 to 1Q15 (net loss of $37.6 million). In the second quarter, it got worse. They had a net loss from 2Q14 to 2Q15 of 444%, losing $74.7 million in 2Q15. Ouch. The company used a $100 million "accordion loan" to keep operating. Here's the red news...
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