Seventy Seven Energy Continues to Lose Money After Re-Emerging from Bankruptcy

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Seventy Seven Energy has released its 3rd quarter 2016 results.  Here is a portion of the company's press release:
Key information related to SSE for the one month ended July 31, 2016 and two months ended September 30, 2016 is as follows:
  • Emerged from bankruptcy on August 1, 2016, which reduced debt by $1.115 billion
  • Net Loss of $36.5 million and $11.6 million for the two months ended September 30, 2016 and the one month ended July 31, 2016, respectively
  • Consolidated Adjusted EBITDA of $8.5 million and $3.0 million for the two months ended September 30, 2016 and one month ended July 31, 2016, respectively
  • 29 rigs currently operating; 22 additional rigs under contract
  • Active rig count has more than doubled during the past six months
For the two months ended September 30, 2016 and one month ended July 31, 2016, SSE reported total revenues of $79.7 million and $40.4 million, respectively, a 13% decrease compared to revenues of $138.1 million for the three months ended June 30, 2016, and a 44% decrease compared to revenues of $213.5 million for the three months ended September 30, 2015. 
Net loss for the two months ended September 30, 2016 and one month ended July 31, 2016 was $36.5 million and $11.6 million, or $1.66 and $0.21 per fully diluted share, respectively, compared to a net loss for the three months ended June 30, 2016 of $84.5 million, or $1.53 per fully diluted share, and a net loss of $48.5 million, or $0.95 per fully diluted share, for the three months ended September 30, 2015. SSE’s adjusted EBITDA was $8.5 million and $3.0 million for the two months ended September 30, 2016 and one month ended July 31, 2016, respectively, compared to adjusted EBITDA of $31.5 million for the three months ended June 30, 2016 and adjusted EBITDA of $41.1 million for the three months ended September 30, 2015.
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