Seventy Seven Energy 3Q16: Post-Bankruptcy, Still Losing $

SSE logoIn August MDN reported that oilfield services company Seventy Seven Energy (SSE), the former Chesapeake Oilfield Operating company, had popped out of bankruptcy in record time–just two months after declaring bankruptcy (see Seventy Seven Energy Pops Out of Chapter 11 Bankruptcy in 2 Mos.). The bankruptcy reduced more than $1 billion worth of debt by waving a magic wand and turning debt into equity (shares of stock)–hosing existing stockholders. SSE’s second quarter report reflects the pre-bankrupt company and showed they lost $84.5 million in 2Q16, compared to losing $74.7 million in 2Q15 (see Seventy Seven Energy 2Q16: Shed $1B Debt, Lost $84.5M). SSE has just released their 3Q16 update, which is the first update since they magically wiped away $1 billion in debt. What does it show? It’s complicated, since there is the pre-bankrupt financials and post-bankrupt financials. The bottom line is that the company is still losing money. If you look at just the two months since emerging from Chapter 11, SSE lost another $36.5 million. The company reports they currently have 29 rigs operating with another 22 rigs under contract…

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