Tag Archives: NYSE

Diamond Offshore to relist on NYSE

Diamond Offshore is returning as a public company. Its stock will be listed on the New York Stock Exchange from March 30 under the ticker symbol of ‘DO’.



The offshore driller, which has its head office in West Houston, owns four drillships and eight semisubmersibles. The company also manages three rigs for Aquadrill, which are currently warm stacked.

Diamond exited bankruptcy in April 2021, having converted $2 billion of debt into equity. The company put itself up for sale in August 2021, but in January it announced it would remain independent after failing to attract any satisfactory takeover offers.

Diamond expects revenues in 2022 of around $700 million, with adjusted EBITDA of approximately $60 million and capital expenditures around $57 million. The company still has net debt of $212 million, so it is projecting a negative free cash flow of $75 million. Obviously, the company believes the rising oil prices will lead to increasing rig day rates.

After exiting bankruptcy, most of the previous senior management left with large severances. CEO Marc Edwards left in April 2021 with a $6 million lump-sum cash severance. CFO Scott Kornblau and COO Ron Woll followed in September 2021 with severances of $653,000 and $876,000 respectively. That was on top of the cash bonuses they received while the company was in bankruptcy.

In October 2021, Mr. Kornblau joined Great Lakes Dredge and Dock Corporation as its new CFO.

Bernie Wolford has served as the CEO since May 2021. He is the former CEO of Pacific Drilling. Dominic Savarino was promoted to CFO from Chief Accounting Officer, having been at the company since 2017.

https://www.prnewswire.com/news-releases/diamond-offshore-announces-relisting-on-nyse-301509630.html

Drilling contractor regains NYSE listing

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.

 

 

 

Houston hospitality company gets delisting notice

Photo by Jason Woodhead

Civeo Corporation has been notified by the New York Stock Exchange that it is non-compliant with its listing standards. The company’s share price has fallen below $1 for the past 30 days.

Civeo has its head office in downtown Houston. The company provides workforce accommodation services to the oil and gas and mining industries. It has operations in Canada (66% of revenues), Australia (24%) and the US (10%). The company has a market capitalization of $145 million.



The company’s problems stem from its spin off from Oil States International in May 2014 . The spin-out saddled it with $775 million in debt. Given the collapse in oil prices later that year it was perfect timing by Oil States! Total debt is currently $391 million with a debt to adjusted EBITDA just over 4.0.

Just last month, the company promoted Carolyn Stone to be its CFO. She replaced Frank Steininger. He is staying on at the company as Executive VP of Strategic Initiatives until he retires in March 2020.

The company has notified the NYSE that it intends to cure the deficiency and restore its compliance with the listing standards. In general, a company has six months to regain compliance.

Back in February 2016, the company received a delisting notice because the share price had been below $1. Within a few weeks, shares climbed back above $1 and the company regained compliance.

SEC filing – Civeo listing non-compliance

Houston E&P company gets another delisting notice

 

Cobalt International Energy (CIE), an exploration and production company with its head office in West Houston was warned by the New York Stock Exchange (NYSE) that it could be delisted as the overall value of its shares has dropped below the exchange’s $50 million market capital threshold.

The company says it will submit a plan to the NYSE within 45 days detailing its plan to return to compliance within 6 months.

Back in March, it received a notice from the NYSE because its share price dropped below the requirement of a $1 minimum average closing share price. It resolved that by completing a 1-for-15 reverse stock split in June. After that split, the shares traded at $3.15 per share. They closed today at $1.17 per share.

Cobalt is heavily in debt and has been trying to sell assets in deepwater Gulf of Mexico and offshore Angola to avoid Chapter 11. At the end of June, the company had $600 million of cash and cash equivalents It has long-term debt with a face value of $2.5 billion, though bonds are trading at nearly a 50% discount to that. It has to maintain a cash balance of at least $200 million to comply with one of the debt covenants. If it doesn’t sell any assets, the company expects to breach that covenant in early 2018.

The financial prospects for the company suffered a big setback in August 2016 with the collapse of its deal to sell its 40% interest in fields in offshore Angola to Sonangol, the state oil company for $1.7 billion. The deal was terminated because the Angolan government didn’t approve the deal. The company is now suing Sonangol.

Don’t feel sorry for the CEO Tim Cutt and CFO David Powell though. In August 2017, the CEO received a $4 million lump sum cash payment and the CFO $1.5 million. These are retention payments designed to keep the executives at the company for the next year. Both executives joined the company in July 2016. Cutt has an annual salary of $1 million and received a bonus for 2016 (paid in March 2017) of $875,000 while Powell has an annual salary of $510,000 and received a cash bonus of $322,000.

When the CEO joined the company he was granted stock worth $4 million. With the drop in the share price, that stock is only worth around $250,000 now, so it appears the retention payment is, in effect, a make-whole payment.

Other key employees received retention payments of $10.6 million.

Cobalt-International-Energy-Receives-Continued-Listing-Standard