A week after emerging from Chapter 11 bankruptcy, Oklahoma City-based Seventy Seven Energy Inc. reported a second quarter net loss of $84.5 million and total revenues of $138.1 million. The total revenue represented an eleven percent drop compared to the $155.4 million in revenues in the first quarter of 2016. It is also a 53 percent drop from the second quarter 2015 revenues.
The net loss of $84.5 million figured out to $1.53 per fully diluted share. At the same time, the company managed to reduce its overall debt by $1.115 billion.
“While we are seeing early signs of activity levels improving, we would caution that we have yet to see pricing respond,” said Jerry Winchester, Chief Executive Officer. “We remain focused on tightly managing our costs while continuing to operate safely and efficiently for our customers. Our continued emphasis on service quality is reflected in our diverse customer base, including over 30 new customers added to our portfolio in the first half of 2016.”
The company’s marketed fleet, as of June 30, consisted of 94 rigs, 74 of which are multi-well pad capable. At the same time, it also had cash and short-term investments of $81.4 million and working capital of $187.9 million.
Seventy Seven filed bankruptcy in early June and was allowed to reorganize about a month later in Delaware Bankruptcy court. It emerged from bankruptcy officially on Aug. 1 and entered immediately into a $100 million senior secured asset-based revolving credit facility.
As for the future, the company said its capital expenditures totaled $21.9 million for the second quarter and $76.1 million for first and second quarters combined. The company expects total year-end capital expenditures for 2016 to be less than $100 million.
