Houston oilfield services company going dark

Parker Drilling (market cap $270 million) will voluntary delist its common stock from trading on the New York Stock Exchange, effective February 10, 2020. This is commonly referred to as ‘going dark’.

The company has annual revenues of $600 million and provides drilling services worldwide, using both company-owned and customer-owned rigs. It also has a rental tools division.

The company was formed in 1934 in Tulsa. It went public in 1978 and moved its head office to Houston in 2001. In December 2018, the company entered bankruptcy proceedings. At that time the shares were delisted from the NYSE.

Chapter 11 resulted in debt being reduced from $585 million to $210 million, with the bondholders gaining a controlling equity stake. Existing shareholders ended up owning only a small fraction of the new equity. After the company came out of bankruptcy in March 2019, the company’s shares regained their listing on the NYSE.

The company has now elected to buy out the small shareholders to get its number of stock holders below 300. Below that level, the company is not required to file public reports with the SEC. By delisting the company expects to save $800,000 per year.

The company is currently without a CEO. Back in July 2019, the company announced it was parting with longtime CEO, Gary Rich, at the end of 2019. Mr Rich received a cash severance of $1.5 million (1x base salary and target bonus). At the time of the announcement, the company said it would engage a search firm to find a successor. No successor has yet been named.

SEC filing – Parker Drilling delisting


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