We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Ocean Rig Files for Bankruptcy Protection, Stock Plunges
Read MoreHide Full Article
Cyprus-based offshore drilling contractor Ocean Rig UDW LLC.???s stock plunged more than 68% to 23 cents on Mar 28 after the company filed for chapter 15 bankruptcy protection in a U.S. court. ??Chapter 15 of the U.S. bankruptcy code will protect the company???s restructuring deal from distressed debt investors and enable it to pursue its debt-for-equity swap with the lenders.
Ocean Rig has reached a financial restructuring agreement with a group of lenders which would convert $3.7 billion of debt of the company to new equity, along with $288 million in cash payment and $450 million in new secured debt. The company stated that existing shareholders will be diluted to an insignificant amount of post-restructuring equity of the company.
The company had been contemplating restructuring under bankruptcy since 2016 owing to the oil and gas industry???s downturn. Due to the decline in oil prices since 2014, many energy firms have slashed rig hires which in turn have left vessels unutilized. Notably, even though more than half of the drilling units of Ocean Rig are inactive, the company needs to repay its debts.
Many offshore drilling companies are considering filing or have already filed for bankruptcy protection since the beginning of the downturn. SeaDrill Limited (SDRL - Free Report) which is battling with $14 billion liabilities and debts has announced plans to file for bankruptcy protection if it is unable to secure a restructuring deal. Peers like, Paragon Offshore, Hercules Offshore, Inc. and Vantage Drilling Company have also filed for bankruptcy protection amid declining oil prices.
Zacks Rank & Other Stock to Consider
Ocean Rig is engaged in providing offshore drilling services for oil and gas exploration, development and production. The company specializes in the ultra-deepwater and harsh-environment segment of the offshore drilling industry.
Ocean Rig, part of the Zacks categorized Oil & Gas Drilling industry, has reported positive average earnings surprise of 66.6% in the last four quarters. The company currently carries a Zacks Rank #2 (Buy).
Antero Resources reported positive earnings surprise in each of the preceding four quarters, the average being 239.10%.
Crescent Point Energy reported positive earnings surprise in each of the preceding four quarters, the average being 127.16%.
The Best Place to Start Your Stock Search
Today, you are invited to download the full list of 220 Zacks Rank #1 "Strong Buy" stocks ??? absolutely free of charge. Since 1988, Zacks Rank #1 stocks have nearly tripled the market, with average gains of +26% per year. Plus, you can access the list of portfolio-killing Zacks Rank #5 "Strong Sells" and other private research. See these stocks free >>
Unique Zacks Analysis of Your Chosen Ticker
Pick one free report - opportunity may be withdrawn at any time
Image: Bigstock
Ocean Rig Files for Bankruptcy Protection, Stock Plunges
Cyprus-based offshore drilling contractor Ocean Rig UDW LLC.???s stock plunged more than 68% to 23 cents on Mar 28 after the company filed for chapter 15 bankruptcy protection in a U.S. court. ??Chapter 15 of the U.S. bankruptcy code will protect the company???s restructuring deal from distressed debt investors and enable it to pursue its debt-for-equity swap with the lenders.
Ocean Rig has reached a financial restructuring agreement with a group of lenders which would convert $3.7 billion of debt of the company to new equity, along with $288 million in cash payment and $450 million in new secured debt. The company stated that existing shareholders will be diluted to an insignificant amount of post-restructuring equity of the company.
The company had been contemplating restructuring under bankruptcy since 2016 owing to the oil and gas industry???s downturn. Due to the decline in oil prices since 2014, many energy firms have slashed rig hires which in turn have left vessels unutilized. Notably, even though more than half of the drilling units of Ocean Rig are inactive, the company needs to repay its debts.
Many offshore drilling companies are considering filing or have already filed for bankruptcy protection since the beginning of the downturn. SeaDrill Limited (SDRL - Free Report) which is battling with $14 billion liabilities and debts has announced plans to file for bankruptcy protection if it is unable to secure a restructuring deal. Peers like, Paragon Offshore, Hercules Offshore, Inc. and Vantage Drilling Company have also filed for bankruptcy protection amid declining oil prices.
Zacks Rank & Other Stock to Consider
Ocean Rig is engaged in providing offshore drilling services for oil and gas exploration, development and production. The company specializes in the ultra-deepwater and harsh-environment segment of the offshore drilling industry.
Ocean Rig, part of the Zacks categorized Oil & Gas Drilling industry, has reported positive average earnings surprise of 66.6% in the last four quarters. The company currently carries a Zacks Rank #2 (Buy).
Ocean Rig UDW Inc. Price
??
Ocean Rig UDW Inc. Price | Ocean Rig UDW Inc. Quote
Antero Resources Corporation (AR - Free Report) and Crescent Point Energy Corporation (CPG - Free Report) are other favorably placed stock from the broader energy sector, sporting a Zacks Rank #1 (Strong Buy). You can see the complete list of today???s Zacks #1 Rank stocks here.
Antero Resources reported positive earnings surprise in each of the preceding four quarters, the average being 239.10%.
Crescent Point Energy reported positive earnings surprise in each of the preceding four quarters, the average being 127.16%.
The Best Place to Start Your Stock Search
Today, you are invited to download the full list of 220 Zacks Rank #1 "Strong Buy" stocks ??? absolutely free of charge. Since 1988, Zacks Rank #1 stocks have nearly tripled the market, with average gains of +26% per year. Plus, you can access the list of portfolio-killing Zacks Rank #5 "Strong Sells" and other private research. See these stocks free >>