Noble Corporation, the Sugar Land-based offshore drilling contractor has relisted its shares on the NYSE. The company filed for bankruptcy in July 2020 and exited in February 2021. In that process, $3.4 billion of debt was exchanged for 86% of the equity in the newly-reorganized company.
The shares were delisted from the NYSE in August 2020.
In April 2021, Noble completed its merger with Pacific Drilling in an all-stock transaction. Noble ended up owning 75% of the combined business. After the relisting, the market capitalization is $6.2 billion.
Last week, Weatherford, an oilfield services company based in the Galleria area, relisted its shares on the Nasdaq. The company exited Chapter 11 bankruptcy in December 2019. Weatherford started trading with a market capitalization of $870 million.
The stock of Stabilis Solutions will once again be traded on the Nasdaq, effective April 29. It was publicly-traded for a few months in 2019.
Stabilis is a small-scale producer and distributor of Liquified Natural Gas. The company builds and operates cryogenic natural gas processing facilities, called “liquefiers”, which convert natural gas into LNG through a multiple stage cooling process. It sells the LNG to energy and industrial companies.
Stabilis Energy, as it was known then, went public in July 2019 when it completed a reverse takeover of AETI, based in Bellaire. Stabilis is owned by Casey Crenshaw, who had also been a director and shareholder of AETI since 2012. It has its head office in west Houston.
Immediately after the transaction was completed, the company received a delisting notice from Nasdaq because it neither had a minimum of 1 million publicly-held shares nor a minimum market value of $15 million for the publicly-held shares. That was due to Crenshaw owning 77% of the combined company.
As a result, the shares were suspended in October 2019 and ultimately delisted later that year. The market cap for the company (traded over-the-counter) is now around $120 million. As a result, the public float exceeds $15 million. The 25 current stockholders will be happy with this.
You can see the full list of Houston-area public companies on my website here
SEC filing – Stabilis relisting
Weatherford International plc has applied to have its share listed on the Nasdaq Exchange. The stock used to trade on the NYSE until they were delisted in April 2020 for having too low a share price.
Weatherford entered Chapter 11 bankruptcy in July 2019 and exited in December 2019, having converted $7.6 billion of debt into equity. With hindsight, it left bankruptcy proceedings too soon as its business was ravaged by the pandemic.
In 2020, revenues were $3.7 billion, a drop of 26% on the prior year. It made an operating loss of $1.5 billion. The losses included a goodwill write off of $239 million, which was all the goodwill created in the fresh-start accounting when it emerged from bankruptcy. There was also impairment of $814 million on intangible assets ($155 million), fixed assets ($571 million) and right-of-use assets ($88 million). Again these were values determined in the fresh-start accounting.
When Weatherford exited Chapter 11 in December 2019, it had shareholders’ equity of $2.9 billion and long-term debt of $2.1 billion. One year later, it now has equity of $937 million and long-term debt of $2.6 billion.
While the Business suffered, the Executives didn’t…
Weatherford has had a reputation for paying large severances while performing poorly. The registration statement continues that trend by disclosing;
- ex-CEO Mark McCollum (left June 2020) received $4.6 million in severance. For good measure, he also received $780,000 in cash bonuses in 2020.
- COO Karl Blanchard retired in February 2020. The bankruptcy was deemed a change-of-control under his contract so he gets 3 x base salary (3 x $700,000) plus 1 x average bonus for the past 3 years. It’s hard to tell what the average bonus is. He didn’t get any bonuses in 2018 or 2019 but got $2.2 million in bonuses for his interim CEO position in the 2nd half of 2020. He was also paid $672,955 in 2020 for cash bonuses in lieu of stock options.
- Stuart Fraser, Chief Accounting Officer, is leaving March 31, 2021. He has the same change-of-control clause as Mr. Blanchard. Mr. Fraser gets 2 x base (2 x $425,000) plus average annual bonus. He also got $270,938 in 2020 for cash bonuses in lieu of stock options.
- Mark Swift, former President of the Western Hemisphere, left in March 2020 with a $1.4 million severance.
Weatherford employed 17,200 at December 2020, down nearly 7,000 from the prior year.
Weatherford new CEO is Girish Saligram, appointed in September 2020. Keith Jennings was appointed as CFO the previous month.
SEC filing – Weatherford Nasdaq listing