Page 14 - NorthAmOil Week 10

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NEWS IN BRIEF
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of approximately 3,500 contracted days in 2020, primarily with major operators holding significant land positions in the Permian Basin. Karl Ruud, AKITA’s president and chief executive officer stated: “Building on AKITA’s consolidation strategy to relocate rigs to the Permian Basin in 2019, the company now operates 13 rigs in the area and is striving to improve financial results in 2020”.
The company announces annual results
for the year ended December 31, 2019. Revenue increased by 49% to $175,890,000
in 2019 from $118,361,000 in 2018, operating margin increased 71% to $54,302,000 in 2019 compared to $31,786,000 in 2018 and adjusted EBITDA increased to $19,131,000 in 2019 up from $16,447,000 in 2018. The company’s net loss increased to $19,875,000 ($0.50 per share) from a net loss of $15,939,000 ($0.65 per share) in 2018.
The company’s US operating segment started 2019 with 16 out of 17 rigs operating. However, demand began to fall near the
end of the first quarter as many operators decreased capital budgets, which translated to a decline in activity for the industry and for AKITA and negatively affected earnings. Results in the US division were also impacted by AKITA executing its strategic plan to move rigs to more active basins in order to consolidate operations, which resulted in both short-term reductions in activity and one-time move costs. Despite this decline in activity, the company’s US division generated 72% of the company’s 2019 revenue, up from 45% in 2018.
AKITA DRILLING, March 05, 2020
Saulsbury Industries
extends its reach in the
Bakken formation
Saulsbury Industries is pleased to announce the recent opening of its Northern Operations and new office in Bismarck, North Dakota.
This new location will support the oil and gas, gas processing, refining, agricultural, renewable and chemical industries as a trusted provider of engineering, procurement, construction and field services. It will also offer supporting services for front-end engineering, AFE estimating and scoping support, as well as stand-alone electrical, instrumentation and construction services. The company will use this location to expand our repeat-business model with satisfied clients through hands-on leadership and successful project results.
“We are thrilled to announce the opening of our North Dakota location,” said Dennis Chismar, senior vice president, business
development. “The Bismarck office represents the strategic expansion of Saulsbury’s services throughout the northern and midwestern United States and provides our clients with strong operational capabilities and proven project execution leaders.”
“This expansion marks a significant milestone for Saulsbury,” said Chat York, president and CEO. “Adding this permanent foothold in the Bakken formation allows us
to tap into a deeper pool of talent to continue providing industry-leading support and service to our clients. It also enables us to look for opportunities in additional markets.”
In addition to a proven track record serving the energy and heavy industrial sectors, this Saulsbury Operation has over 100 years of combined leadership experience completing projects in the northern and Midwestern climates of the US.
“After completing a number of successful projects in this geographically challenging region, Saulsbury now has the experience and track record to expand our footprint and establish a permanent presence in this region,” said Bubba Saulsbury, executive vice president, corporate strategy.
SAULSBURY INDUSTRIES, March 09, 2020
NexTier announces sale
of well support services
segment
NexTier Oilfield Solutions Inc. today announced the sale of its well support services (WSS) segment to Basic Energy Services, Inc. for total consideration of $93.7mn. The sale includes the company’s rig services, special services and fluids management businesses. The transaction was simultaneously signed and closed on March 9, 2020.
“We are excited to announce the sale of our well support services segment to Basic
Energy Services, a leader in well support and production services,” said Robert Drummond, president and chief executive officer of NexTier. “With the strategic divestiture of
this non-core business, we further streamline NexTier’s operations and resources, driving even greater focus on our core competencies, and supporting our mission of accelerating customer production while lowering their cost per BOE. This transaction further solidifies NexTier as one of the largest U.S. land focused completions companies, and positions us
to further differentiate on service quality, safety and innovation. By completing this transaction, we extend our team’s track- record of acting decisively, executing on our commitments, and generating long-term value.”
Total consideration of $93.7mn is comprised of $59.35mn of cash received at closing and $34.35mn of par value senior secured notes previously issued by Basic. Under the terms of the agreement, the notes are accompanied by a make-whole guarantee at par value, which guarantees the payment of $34.35mn to NexTier after the notes are held to the one year anniversary of March 9, 2021. The cash equivalent make-whole is issued under a fund guarantee by Ascribe Capital, a private investment firm with approximately $3bn in assets under management. Under terms of the agreement, NexTier is permitted to sell the Notes at any time prior to the one year anniversary without the make-whole guarantee protection. In the event of a Basic restructuring or a credit rating downgrade in conjunction with a change in control prior
to the one year anniversary, the make-whole guarantee accelerates the Notes to par value of $34.35mn. NexTier is entitled to semi- annual interest payments on the Notes based on the 10.75% annual coupon throughout the holding period.
NEXTIER OILFIELD SOLUTIONS, March 09, 2020
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Week 10 12•March•2020