Service & Supply | Finance & Investing | Debt | Oilfield Services | Financial Trouble | Capital Markets

Lazard Freres to Advise Seventy Seven Energy; Interest Payments, Debt

Email    |    Print    |    Bookmark

You Need to login first

   |    Monday,January 18,2016

Seventy Seven Energy Inc. has retained the services of Lazard Freres & Co. LLC to advise the Company’s management and board of directors on identifying opportunities in its capital structure to improve value and enhance strategic growth opportunities.

Using ShaleExperts recently launched Company Performance Monitor, we see something that if continued the company could be in problems.  

We took a look at the company financials and our performance monitor quickly showed a growth in % of the interest expense to revenue.

• 1. Interest Expense  : $25 million (as of Sep 30, 2015) (now 11% of total revenue)
• 2. Total Debt : $1.5Billion (as of Sep 30, 2015)

1. Its interest expense ($25million) is 11% of revenue  $213 Million.  Last year (at the same time) when the company earned $526 million, the company's interest payements were only 4% of its Revenues.

Source : Shale Experts Company Performance Monitor, Company filings

Source : Company Presentation; Presentation Manager

Chief Executive Officer Jerry Winchester said, “Our operations continue to perform at a high level delivering much needed efficiency for our customers. Working with Lazard, we believe we can unlock meaningful value by addressing opportunities with respect to our balance sheet by reducing the level of our debt and further enhancing our liquidity. This will put us in a stronger position to take advantage of our operational strengths and grow our business.”

The Company does not anticipate making additional announcements concerning the process unless and until the Company otherwise determines that disclosures are necessary or appropriate.