Whither Onshore Drilling Activity Goest, Basic Energy Services Will Follow
Stephen Simpson, CFA
Stephen Simpson, CFA
Yesterday, 12:09 PM
- Basic Energy Services (BAS +33.7%) surges nearly 35% following extensions of its forbearance agreement with lenders and waivers to continue deleveraging negotiations.
- BAS says it has continued to make progress in negotiations with creditors regarding a deleveraging transaction, and has reached an agreement with 81% of the holders of its 2019 notes to extend the forbearance period through Oct. 16.
Thu, Sep. 15, 9:17 AM
- Basic Energy Services (NYSE:BAS) +12.3% premarket after saying it obtained waivers to continue deleveraging negotiations with secured lenders and unsecured bondholders.
- BAS says it entered into a forbearance agreement with ~81% of the holders of its 7.75% senior notes due 2019 regarding the previously announced 30-day grace period related to an $18.4M interest payment; the company says it will not make the payment.
- BAS says it has ample liquidity to continue efficient and uninterrupted operations and expects to meet all obligations to suppliers, customers and employees.
Tue, Aug. 23, 8:57 AM
- Basic Energy Services (NYSE:BAS) says it received notice of non-compliance from the NYSE concerning the Exchange's continued listing standards for share price and market cap.
- As of Aug. 18, BAS's average closing price over the preceding 30 trading-day period was $0.98/share, and its average global market cap over the period was $41.7M.
- BAS says it is considering all available options to regain compliance.
Mon, Aug. 15, 11:58 AM
- Basic Energy Services (BAS -5%) sinks after saying it will utilize the 30-day grace period on an $18.4M interest payment due today on its 7.75% senior notes due 2019.
- BAS says it is best to use the grace period to continue to engage in discussions with its secured and unsecured debtholders regarding strategic alternatives to improve the company's long-term capital structure.
- BAS shares continue to bump along all-time lows following Q2 results and warning that it was seeking refinancing or restructuring options.
Fri, Jul. 22, 2:00 PM
Fri, Jul. 22, 12:40 PM
Fri, Jul. 22, 10:36 AM
- Basic Energy Services (BAS -30.7%) plunges to all-time lows after reporting a Q2 loss of $1.34/share on 38% lower revenues of $120M.
- BAS says it is evaluating potential strategic alternatives, such as refinancing or restructuring of its capital structure or available financing options, to address its liquidity position and high debt levels; BAS says if it is unable to find acceptable alternatives to its current capital structure to better fund future capital needs, its business, financial condition and results of operations "may be materially and adversely affected."
- The company also lowers its expected FY 2016 capex to ~$30M from prior expectations of $40M.
Thu, Jul. 21, 11:43 PM
Wed, Jul. 20, 5:35 PM
Wed, Jun. 29, 2:03 PM
Fri, May 27, 2:45 PM
Wed, Apr. 20, 11:31 PM
Tue, Apr. 19, 5:35 PM| Tue, Apr. 19, 5:35 PM | 16 Comments
Mon, Apr. 18, 1:03 PM
- Deutsche Bank upgrades Ensco (NYSE:ESV) to Hold from Sell.
- Price target goes to $9 from $5. Implied downside 11%.
- Late last week, ESV announced an equity offering expected to raise $525M.
- "Although we did not necessarily expect an offering from ESV given its already strong balance sheet, we did (and continue to) believe this is exactly the kind of action needed to restore the offshore drilling industry to health.
- "The company is now positioned to lead much needed consolidation. However, the current mixed outlook leaves us with a HOLD rating.
- "Should the industry follow suit, it could lead to a harder line on pricing which, in turn, could bring about price discovery on assets/ M&A and help put a floor under the stocks."
- ESV’s actions are consistent with our view that in order for the industry to survive, industry leaders needed to shore up their balance sheets and aggressively retire older assets which would put a floor under dayrates/asset values and help facilitate consolidation. We thought the floater companies would be the first movers given the more distressed balance sheets and the segment would be easier to consolidate.
- Deutsche Bank's top picks in the oil-services industry:
- HAL - price target $40. "HAL's ability to deliver value by driving customer unit costs lower through technology and efficiencies will become increasingly important during the downturn."
- BAS - price target $3. "Basic's high exposure to completion/production will allow the company to benefit from the growing backlog of drilled but uncompleted wells."
- KEG - price target $1. "KEG's production leveraged businesses should hold up better than overall drilling activity and also recover sooner when oil fundamentals return to balance."
- SPN - price target $15. "SPN is a uniquely positioned mid cap diversified service provider. Its product mix drives high, through-cycle margins relative to peers, which will allow it to lower pricing to protect market share during the downturn."
Mon, Apr. 18, 9:20 AM
Fri, Apr. 1, 12:46 PM