Seventy Seven Energy

Last week we told you that Seventy Seven Energy, the former Chesapeake Oilfield Operating division of Chesapeake, spun off into its own company on July 1, 2014, had hired a “turnaround” company to help it, well, turnaround…financially (see Seventy Seven Energy Hires Turnaround Expert, Hopes to Stay Afloat). Perhaps we now know why. Yesterday Seventy Seven notified the world that the New York Stock Exchange has sent them a warning that their stock has fallen below minimum standards for continued listing on the exchange–unless they turn it around, fast. We’re not sure whether or not that will happen. Last week when we told you the company had hired a turnaround expert, their stock was trading at 60 cents per share. As of end of trading yesterday, that number was 48 cents per share. Last week the company’s market capitalization (how much the company is worth on paper) was $45.4 million. As of yesterday, the company’s marketcap was $21.13 million…
Continue reading

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. It’s very first quarterly income statement, issued in August 2014, was the first and last time the company actually cleared a profit (see Seventy Seven Energy’s 1st Quarterly Update: Revenue Down 6%). Since that time, quarter after quarter the company has lost money. One of the challenges faced by Seventy Seven is that its main customer was and continues to be Chesapeake Energy. As of the third quarter 2015, Chesapeake provided Seventy Seven with 58% of its revenue, down from a previous 64% (see Seventy Seven Energy 3Q15: Still Losing Money, But Not as Much). As we said at the time, “You can’t stay in business long with multi-million dollar losses quarter after quarter.” Indeed. Seventy Seven announced yesterday they’ve retained the services of Lazard Freres–an international financial advisory and asset management firm. One of Lazard’s talents is in helping companies “restructure” and/or find a buyer. Here’s what Seventy Seven said yesterday…
Continue reading

Seventy Seven Energy (SSE), 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). Every quarter we bring you SSE’s financial and operational update, and every quarter seems like the news gets worse. In 1Q15 SSE lost $37.6 million. Last quarter they lost $74.7 million. What about 3Q15? They lost again–$48.5 million. To be fair, they lost less money than they did last quarter, so there’s that. But the reason they lost less is because revenues are down 28% from 2Q15. They just aren’t drilling as much. Less work. Was there any good news? Not much, but perhaps this…
Continue reading

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…
Continue reading

MDN recently told you Seventy Seven Energy–an oilfield services company with major operations in the northeast, the old Chesapeake Oilfield Operating division of Chesapeake–continues to operate in the red, which it has done since it became its own company in July 2014 (see Seventy Seven Energy 1Q15: Red Ink Continues to Flow Heavy). We also told you the company recently secured a $100 million loan (see Seventy Seven Energy Secures $100M Loan to Keep on Drillin’). Seventy Seven announced yesterday they are selling their trucking company subsidiary, Hodges Trucking (rig hauling company), for an undisclosed amount of money to Aveda Transportation and Energy Services Inc…
Continue reading

As we told you last week, Seventy Seven Energy–an oilfield services company with major operations in the northeast, the old Chesapeake Oilfield Operating division of Chesapeake–spun off into its own company on July 1, 2014–continues to operate in the red (see Seventy Seven Energy 1Q15: Red Ink Continues to Flow Heavy). The company has just secured a $100 million loan which, according to CEO Jerry Winchester, “strengthens our liquidity” and “provides us a greater ability to take advantage of opportunities that may arise to enhance shareholder value.” In other words, it allows them to keep the doors open…
Continue reading

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 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?…
Continue reading

Seventy Seven Energy, 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). On Monday the company released their 2014 full year and fourth quarter update. The company’s revenue was down 5% in 2014 compared with 2013, and they lost money ($8 million, or 17 cents per share). Company CEO Jerry Winchester says the company is in a good position to “weather the storm the industry is currently experiencing and take advantage of the opportunities that will arise from it.” Below is the update…
Continue reading

Seventy Seven Energy, 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). Right out of the chute Seventy Seven’s beginning was a little rocky (see Seventy Seven Energy’s 1st Quarterly Update: Revenue Down 6%). However, we now have their second quarterly update–for third quarter 2014–and it seems Seventy Seven has found its sea legs. The numbers are now heading in the right direction for Seventy Seven…
Continue reading