CM - Key reorganizing, converting $242MM of debt to equity - January 2020Struggling contractor Key Energy Services, Inc. announced a restructuring support agreement with its term loan lenders that will convert about $242 million of loans into 97% of the company’s new common shares and $20 million of new term loans under a $51.2 million facility. The transactions will reduce Key’s long-term debt by about 80%. Under terms of the agreement, which is being conducted outside the courts, existing shareholders will receive 3% of the new equity, subject to dilution...
Jan 31, 2020
CM - Key extends forbearance agreements with term loan lenders - December 2019Key Energy Services Inc. announced that it extended its forbearance agreements with lenders until Jan. 10. The agreements, which it initially struck with holders of 99.5% of its term loan principal in October, were set to expire on Dec. 9. The company had $243 million outstanding under its term loan agreement, which matures in 2021, as of the end of Q3. Key entered the forbearance agreements after engaging Moelis & Co. to assist in a strategic review of its capital structure. Under...
Dec 13, 2019
OFS - ‘Challenging’ market pushes some companies to the brink - November 2019Q3 can be boiled down to one word— challenging. That word kept popping out of CEOs’ mouths during their companies’ earnings conference calls. “The third quarter was challenging for Carbo, like many companies in the North American oil and gas industry,” Carbo Ceramics CEO Gary Kolstad said. U.S. Silica CEO Bryan Shinn acknowledged a “challenging third quarter given the weakness in the oil and gas completions market.” Hi-Crush Inc. CEO Bob Rasmus congratulated his company for navigating “an...
Nov 19, 2019
CM - Bankruptcies: Halcón emerges again; EP Energy goes in - October 2019Halcón Resources emerged from Chapter 11 bankruptcy protection on Oct. 8 about $800 million lighter and with a new $750 million senior secured reserve-based revolving credit facility that features an initial $275 million borrowing base. It is the company’s second time through the process within three years, having shed $1.8 billion in debt in 2016. Halcón said its newly reduced debt load will also decrease annual interest expenses by over $40 million. Post-emergence, the company has $147...
Oct 25, 2019
OFS - PHI emerges from bankruptcy about $500 million lighter
September 2019PHI, Inc., which provides helicopter services for the energy industry, emerged from Chapter 11 bankruptcy protection on Sept. 4 with a debt load reduced by nearly $500 million and its former unsecured creditors now owning $53.7 million in equity, comprising the entire pre-dilution value. Existing shareholders were given warrants to buy new common stock, and 10% of the new common stock was reserved for management incentives. Lance Bospflug, CEO of the Lafayette, Louisiana-based company said PHI...
Sep 17, 2019
CM - EQT shareholders vote in Rice directors in ‘shalennial’ upset - July 2019Toby and Derek Rice have emerged victorious in one of the highest-profile proxy
fights—energy or not—in recent history. According to voting results on July 10, EQT Corp.
said that all seven director nominees proposed by the “shalennial” brothers and the five
supported by both sides won control of the board of directors of EQT, the US’s
largest natural gas producer. All 12 elected directors received more than 80%
of the votes cast at the annual meeting. They include existing director Daniel
Rice...
Jul 12, 2019
CM - Analyst Notes - June 21, 2019Diamondback Energy Corp. (NYSE: FANG; $101.58-June 17; Overweight)
We continue to reiterate FANG as a name to own in both a defensive and an
offensive environment. The company noted that in a draconian scenario its maintenance
mode (14 – 15 rigs or ~$1 Bn D&C program) can easily cover the dividend. We recently
tested FANG in maintenance mode and saw ~$700mm of FCF after dividends and a
~4.5% FCF yield at a leverage profile of sub-1x in 2020 at ~$45/bbl. Absent a steady
period of...
Jun 21, 2019
OFS - People & Companies - May 14, 2019Calfrac Well Services Ltd. has
announced the appointment of Fernando
Aguilar, Kevin Baker, James Blair,
Gregory Fletcher, Lorne Gartner, Ronald
Mathison and Douglas Ramsay as directors. CSI Compressco LP has
appointed Brady Murphy as chairman
of the board, effective May 3. He
succeeds Stuart Brightman, who is
retiring. Elijio Serrano was also appointed
to the board of directors of the general
partner. Serrano is currently the CFO
of Tetra and of CSI Compressco. Essential...
May 14, 2019
OFS - People & Companies - April 01, 2019Transocean chairman Merrill
“Pete” Miller will not seek re-election
after agreeing to be executive chairman
of offshore equipment manufacturer
MHWirth. Miller, who was CEO of
National Oilwell Varco from 2001 to 2014,
has been a Transcoean director since
2014 and chairman since 2015. MHWirth,
which is owned by Akastor, also named
Eirik Bergsvik as CEO. Bergsvik has
been on MHWirth’s board since 2014 and
was CEO of downhole product supplier
Interwell from 2011 to 2017. Schlumberger...
Apr 01, 2019
A&D - Analyst Notes - January 30, 2019Devon Energy (DVN; $27.17-Jan. 22; Buy; PT-$40)
We believe the STACK would be the next asset on the chopping block – in our
conversation, DVN: (1) seemed less likely to rein in Rockies activity, which is on track to
accelerate to 4 rigs (from 2 prior), a level of activity sufficient for a dedicated frac crew;
and (2) voiced hesitation to pullback in the Delaware, its most prolific and
fastest rate of change asset which has featured monster well results in recent
months as the company...
Jan 30, 2019
OFS - News Briefs - July 16, 2019Cordy Oilfield Services signed a
non-binding letter of intent to acquire the
three private construction and transportation
companies based in Kamloops,
British Columbia, including
operating assets and business
contracts, in a C$2.0 million transaction. The
founder and key employee of the business
will join Cordy’s senior management upon
closing. Calgary, Alberta-based Cordy
will issue 10 million common shares at a
deemed price of C$0.05 per share for the
businesses and will assume leases...
Jul 16, 2019
CM - News Briefs - July 12, 2019Dallas’ Pearl Energy Investments
and Energy Innovation Capital teamed up
with hydrogen sulfide technology provider
Streamline Innovations, Inc. to fund the
purchase of chemical supplier Advanced
Oxidation Technology. The AOT buy
will be helpful in advancing Streamline’s
flagship technology, called Valkyrie, which
removes hydrogen sulfide from natural
gas, produced water, and wastewater. No
dollar amount was disclosed. Western Midstream Operating, LP,
the operating subsidiary of...
Jul 12, 2019
IS - Latin America Briefs - May 16, 2019Australia-based Melbana Energy
Ltd. terminated a farm-out agreement in
Cuba for Block 9 with Chinese oil services
company Anhui Guangda Mining
Investment Co. Ltd. Melbana said the deal
fell through because Anhui failed to fulfill
the terms of the farm-out deal announced
in October within the proscribed timeframe.
Anhui was to pay 100% of the costs related
to Block 9 starting Jan. 1, including the
drilling of at least three wells. Toronto-listed Arrow Exploration sold
interests in two...
May 16, 2019
OFS - A&D Briefs - February 19, 2019The EQT Infrastructure III fund
acquired Kodiak Gas Services from
private investment firm The Stephens
Group for an undisclosed amount.
Kodiak is the largest privately owned
contract compression company in
the US with more than 1.13 million hp
deployed across key basins. Kodiak will
maintain its headquarters in Houston
and retain its management team,
including president Mickey McKee and
CEO David Marrs. The €4 billion ($4.5
billion) fund is operated by Swedenbased investment firm EQT....
Feb 19, 2019
OFS - People Briefs - October 24, 2018The board of Key Energy Services Inc. appointed Louis Coale to serve as the VP and controller. Coale has served as VP of operational finance of subsidiary Key Energy Services LLC since May 7. Prior to joining Key, Coale served as a financial advisor to several companies.Gulf Island Fabrication added Cheryl Richard to its board. Richard has more than 30 years of experience in the energy industry, including various leadership roles for ConocoPhillips, as well as VP of human resources for...
Oct 24, 2018