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Friday, August 28, 2015 10:53:57 AM
PGN Full DD and Analyst Lets Tear this Company Apart First off lets start with the latest earnings report that just came out
http://finance.yahoo.com/news/paragon-offshore-reports-second-quarter-201100615.html
HOUSTON, Aug. 12, 2015 /PRNewswire/ -- Paragon Offshore plc ("Paragon") (PGN) today reported second quarter 2015 net income of $47.3 million, or $0.51 per diluted share as compared to second quarter 2014 net income of $95.0 million, or $1.12 per diluted share. Results for the quarter include a $4.1 million, or $0.04 per diluted share, loss on the sale of an asset and a $1.7 million, or $0.02 per diluted share, non-cash impairment charge related to assets which the company previously announced it had decided to retire from service. Excluding the above charges, Paragon's adjusted net income (see Reconciliation of GAAP to Non-GAAP Financial Measures Table for a reconciliation to net income) was $53.1 million, or $0.57 per diluted share.
The results for the second quarter include a tax benefit of $18.5 million, as compared to a tax provision of $6.6 million in the first quarter of 2015, primarily as a result of restructuring certain of our operations. For periods prior to Paragon's spin-off from Noble Corporation plc ("Noble") on August 1, 2014 (the "Spin-Off"), results of operations are based on Noble's standard-specification business (our "Predecessor") and include contributions from three standard specification rigs retained by Noble and three standard specification rigs that were sold prior to the Spin-Off. For more information regarding the Spin-Off, please see Paragon's filings with the U.S. Securities and Exchange Commission (the "SEC") available on the company's website at www.paragonoffshore.com.
Ok So the Company Made NET INCOME of 47.3 Million Dollars for the QTR!!!!
PGN Market Cap: 60.19 Million Dollars AND THEY JUST MADE 47.3 MILLION DOLLARS IN A SINGLE QTR!!!!! WOW!!!!!
The company made 1.12$ EPS for the past 6 Months and WERE ABOUT TO BUY THE STOCK TODAY FOR 67 CENTS A SHARE!!!!! OMG WOW WHAT A STEAL!!!!
Must READ BELOW Lets keep going because NOW I AM REALLY EXCITED!!!
Paragon's second quarter 2015 results demonstrate our ongoing ability to deliver safe, reliable and efficient operations while controlling costs and securing additional backlog," said Randall D. Stilley, President and Chief Executive Officer. "Furthermore, we secured $300 million of financing on Prospector 1 and Prospector 5 through the recently closed sale-leaseback transaction, enhancing our cash position and providing Paragon with significant optionality during the challenging days ahead."
Total revenues for the second quarter of 2015 were $393.2 million compared to $430.6 million in the first quarter of 2015. Paragon reported utilization for its marketed rig fleet, which excludes one stacked floater, as 69 percent for the second quarter of 2015, as compared to 74 percent in the first quarter of 2015. Average daily revenues decreased three percent in the second quarter of 2015 to $149,000 per rig compared to the previous quarter average of $152,000 per rig. Contract drilling operating costs declined in the second quarter to $197.0 million compared to $225.1 million in the first quarter of 2015.
Net cash from operating activities was $96.6 million in the second quarter of 2015 as compared to $210.4 million for the first quarter of 2015. Capital expenditures in the second quarter totaled $62.4 million. At June 30, 2015, liquidity, defined as cash and cash equivalents plus availability under the company's revolving credit facility, totaled $454.9 million while our leverage ratio, the ratio of the company's net debt to trailing twelve months EBITDA, as defined in the company's revolving credit facility, was 2.6 at June 30, 2015.
Total revenues for the second quarter of 2015 were $393.2 million IN REVENUES FOR 1 QTR THIS COMPANY IS HUGE THEY ARE DOING 393 MILLION IN REVENUES!!!! ALSO READ ON AVG DAILY REVENUES DROPPED BY ONLY 3 PERCENT!!!! THE WAY THE STOCK PRICE HAS COLLAPSED YOU WOULD THINK THAT THEY WOULD BE DOWN 50% OR MORE!!!! BUT NO ONLY DOWN 3% NOT THAT BIG OF A DROP AND KEEP IN MIND THE COMPANY IS MAKING OVER 47 MILLION DOLLARS!!!! IN A SINGLE QTR VS A MARKET CAP OF ONLY 60 MILLION DOLLARS!!!! ALSO I DID ALOT OF DD LAST NIGHT I WILL TELL YOU THIS THERE IS NO RISK OF BANKRUPTCY HERE ILL SHOW YOU THIS FACT LATER ON LETS KEEP GOING GOT TO GO TO THE SEC FILING FOR THAT INFORMATION
Net cash from operating activities was $96.6 million in the second quarter of 2015 Company is generating HUGE Sums of Cash Cash flows of 96.6 Million in the Second Qtr along this is MORE CASH THEN WHAT THE ENTIRE MARKET CAP OF THE COMPANY IS 60 MILLION MARKET CAP VS 96.6 MILLION IN CASH FLOWS!!!!
THIS COMPANY REMINDS ME OF DTG AT UNDER A 1$ 2 YEARS LATER GOT BOUGHT OUT AT 88$ A SHARE
At June 30, 2015, liquidity, defined as cash and cash equivalents plus availability under the company's revolving credit facility, totaled $454.9 million while our leverage ratio, the ratio of the company's net debt to trailing twelve months EBITDA, as defined in the company's revolving credit facility, was 2.6 at June 30, 2015.
On July 24, 2015 the company closed a sale-leaseback transaction in connection with Prospector 1 and Prospector 5. Net of fees and expenses, the company received proceeds of approximately $292.0 million of which $23.0 million is required to be maintained in certain restricted accounts, leaving the company with available proceeds of approximately $269.0 million. The company's cash and cash equivalents as of June 30, 2015 adjusted for the available funds from the sale-leaseback transaction plus availability under the company's revolving credit facility, results in a pro forma liquidity of $723.9 million.
723.9 Million in Cash HOW IN THE HELL DID THIS STOCK EVER GET THIS LOW
Operating Highlights
Paragon's total contract backlog at June 30, 2015 was an estimated $1.6 billion compared to $1.9 billion at March 31, 2015.
1.6 BILLION DOLLAR BACKLOG WOW!!!!!!
Utilization of Paragon's marketed floating rig fleet was 100 percent in the second quarter and in the first quarter of 2015. Average daily revenues for Paragon's floating rig fleet decreased seven percent to $258,000 per rig in the second quarter of 2015 from $277,000 per rig in the first quarter of 2015.
So While Revenues has declined some 100% fleet is being used company is still profitable as we will see below company has Cut Cost and kept opperations profitable and ALL Their Rigs Working ALSO This company is much more diversified then NADL I was looking at it orignally then i found this company NADL Has a market cap of 183 Million VS PGN 60 Million AND PGN Has more revenues bigger backlog and WAY MORE DIVERSIFIED THEY DO PROJECTS ALL OVER THE WORLD AS WHERE NADL MAINLY DOES IT IN THE NORTH ALTLANTIC REGION PGN CHEAPER BIGGER REVENUES BETTER BALANCE SHEET
NO BANKRUPTCY RISK AT ALL ILL SHOW YOU THIS IN DETAIL LATER ONCE WE GET TO THE 10Q SEC FILINGS
Second quarter 2015 utilization of Paragon's marketed jackup rig fleet decreased to 64 percent compared to the 71 percent utilization achieved during the first quarter of 2015. Average daily revenues for Paragon's jackup fleet during the second quarter declined by two percent to $124,000 per rig from $127,000 per rig during the first quarter of 2015.
At the end of the second quarter of 2015, an estimated 57 percent of the marketed rig operating days were committed for 2015, including 87 percent and 52 percent of the floating and jackup rig days, respectively. The calculations for committed operating days exclude available days related to one floating unit that is stacked.
During the quarter, Paragon added approximately $89.9 million in backlog related primarily to previously disclosed new contracts and extensions in India, the Middle East and West Africa. In India, the Paragon MDS1 received a contract extension from mid-April 2015 to mid-August 2015 at a dayrate of $97,000. In the Middle East, the Paragon L784 received a contract award from early June 2015 to early June 2018, at a dayrate of $88,000 from early June 2015 to early June 2016 and $95,000 from early June 2016 to early June 2018. In West Africa, the Paragon M826 received a new contract from mid-August 2015 to mid-December 2015 at a dayrate of $105,000.
In addition, Paragon added approximately $200.0 million in backlog related to contracts and extensions announced in its July 13, 2015 and August 10, 2015 Fleet Status Reports. In the Middle East, the Paragon B152 received a contract extension from late November 2015 to late November 2017 at a rate of $81,000 while the Dhabi II received a contract extension from mid-July 2015 to mid-July 2017 at a dayrate of $76,000. In the North Sea, the Paragon C461 received a contract extension from mid-November 2015 to mid-November 2017 at a dayrate of $113,000. The Paragon C20051 received a contract extension from early December 2015 to late May 2016 at dayrates between $125,000 and $135,000. In addition, we agreed to a backlog swap between the Paragon C462 and Paragon C463 and received a contract extension from late December 2015 to early March 2016 on the Paragon C463 at a dayrate of $130,000.
All Positives
Outlook
Mr. Stilley concluded, "As we anticipated, the offshore drilling environment has deteriorated further since the quarter ended and there is no improvement on the near-term horizon, particularly in the floating rig market segment where there is an oversupply of assets and very little demand. The shallow water segment has worsened as well and also faces supply challenges, though we see few speculative newbuild jackups coming to market and securing contracts. In fact, Paragon's low-cost, high-quality focus has enabled us to win work in the few regions where there has been demand. Our cash position is strong and we continue to reduce costs aggressively as we do not expect a quick recovery in our markets."
This is what I like to hear from management they are cutting cost shoring up their balance sheet AND STILL VERY PROFITABLE WITH VERY STRONG CASH FLOWS AND A HUGE BACK LOG 1.6 BILLION DOLLAR BACK LOG Rates only down 3% STOCKS DOWN OVER 90%
EXTREMLY OVER SOLD AND EXTREMLY UNDERVALUED FULL DD LETS KEEP GOING!!!!
About Paragon Offshore
Paragon is a global provider of offshore drilling rigs. Paragon's operated fleet includes 34 jackups, including two high specification heavy duty/harsh environment jackups, and six floaters (four drillships and two semisubmersibles). Paragon's primary business is contracting its rigs, related equipment and work crews to conduct oil and gas drilling and workover operations for its exploration and production customers on a dayrate basis around the world. Paragon's principal executive offices are located in Houston, Texas. Paragon is a public limited company registered in England and Wales with company number 08814042 and registered office at 20-22 Bedford Row, London, WC1R 4JS, England. Additional information is available at www.paragonoffshore.com.
They are off shore Drilling Rig Company This is a HUGE Company folks with huge revenues huge cash flows huge earnings!!!! and a market cap that is down NEXT TO NOTHING!!! 60 MILLION MARKET CAP VS 47 MILLION DOLLARS IN EARNINGS FOR A SINGLE QTR!!!! CASH FLOWS OF 96 MILLION FOR A SINGLE QTR!!!!
Conference Call
Paragon also scheduled a teleconference and webcast related to its second quarter 2015 results on Thursday, August 13, 2015, at 8:00 a.m. U.S. Central Time. The teleconference can be accessed from the U.S. and Canada by dialing 1-888-771-4371, or internationally by dialing 1-847-585-4405, and using access code: 40293273. Interested parties may also listen to the webcast through a link posted on Paragon's website at www.paragonoffshore.com, under "Events & Presentations" in the "Investor Relations" section of the website.
I Done Read the transcript of the entire CC Link Here
http://seekingalpha.com/article/3436486-paragon-offshores-pgn-ceo-randy-stilley-on-q2-2015-results-earnings-call-transcript
Last night, we reported results that were well ahead of expectations. Operationally, we continue to perform well with unpaid downtime of less than 2%. Costs were below the low end of our guidance, thanks to our focused cost control efforts, and as Steve will discuss further, we’ve been successful in some internal restructuring that provided a significant tax benefit in the second quarter, and we expect it will continue for some time.
Thats the CEO Speaking above very positive comments
Last quarter, I outlined five near term priorities for Paragon. First, I said that we needed to reduce our operating cost and capital expenditures to preserve contract drilling margins and liquidity. We’ve done so bringing OpEx below our most recent guidance. We are also updating our guidance today to reduce full-year CapEx spending to below $200 million for 2015. To be sure, stacking rigs has helped lower CapEx and OpEx, but we are keenly focused on taking additional costs out of the system as quickly as possible in an environment that could be lower for longer.
Company is cutting cost and reducing capex spending sounds like we have a great management team in place here
Next, we said that we were going to refinance the debt from the Prospector acquisition. Our recently closed sale leaseback delivered on that promise providing $300 million of financing at attractive rates and enhancing Paragon’s liquidity. Adding the net proceeds from the sale leaseback to our cash and revolver availability as of June 30 gives us a pro forma liquidity of approximately $725 million and reduces our net debt.
Tackling debt getting lower rates thats positive
Third, we told you we had aggressively pursued new contracts. Our marketing team has done a great job in leveraging customer relationships, and our record of operational excellence is to secure contracts in the North Sea, Middle East, and Africa. In one of the few drilling contractors, there has been success recently and we are winning work with older standard rigs rather than newer high spec rigs. Of course, we can’t create work. Some of our customers suffered from severely reduced budgets, commodity prices that are simply too low to make drilling opportunities economic or other internal issues that have resulted in reduced activity. But where we have opportunities, we are more than competitive and we’ll continue to be aggressive in securing new work for our rigs.
Sounds like they are working hard to get work i like to hear that!!!
Fourth, we talked about strengthening our balance sheet to position Paragon for the long term. Many of you have asked what our intentions are for the funds raised through the sale leaseback. We have a range of possibilities and we are not prepared to provide you with an answer today. However, we are carefully analyzing our options, and when the time is right, we will announce our intentions. For now, I won’t emphasize our increased liquidity and the flexibility that it potentially provides.
I am going to SHOW LATER IN MY DD THESE FEARS ARE WAYYYY OVER BLOWEN LETS CONTINUE
Fifth, we said that we would maintain our focus on being the high quality, low cost, safe and reliable drilling contractor. We believe our revenue efficiency and our ability to secure additional work in this difficult environment speaks to our success in this area. This is a key differentiator for Paragon, and sophisticated customers realize that it is not just about how new an asset is, rather it’s the people and the processes of how [indiscernible] assets dictate success. Paragon has some of the best of both.
This Sounds like a great Company With great management!!!!
This sounds like a company that Warren Buffet Would want to Buy!!
Despite our successes, our equity has struggled. You are aware that we recently received a notice of non-compliance from the NYSE regarding our share price and its 30-day trading average. As we said in our recent release, we intend to take steps to cure on our compliance within the allotted timeframe. There is no denying, it’s a very difficult time in the industry and it’s likely to remain so for the foreseeable future. At Paragon, we are focused on controlling what’s within our power to control and managing through the rest. We have an experienced management team that’s seen [indiscernible] before and I want to reiterate that Paragon is planning for the long term.
I dont care about that In FACT I AM LOVING THESE LOW STOCK PRICES CURRENTLY SO I CAN LOAD UP ON A GREAT COMPANY WITH HUGE REVENUES CASH FLOWS EARNINGS!!!! WITH GREAT MANAGEMENT TEAM!!!
CFO
Thank you, Randy, and good morning to everyone on the call. We had another really solid quarter. We ended up with approximately $158 million in EBITDA, which is slightly lower than the $167 million in the first quarter. Despite the fact that our contract drilling service revenue were lower versus the first quarter, it’s a testament to our ability to manage our cost and to react to market changes.
Slightly Lower Revenues BUT does that justify a 90%+ Drop in the stock price?? HELL NO!!! WHAT A BUYING OPT!!!
Here are some of the second quarter highlights. We had contract drilling service revenues of $363 million, which is about 9% lower than the first quarter. A big piece of that was the lower revenue from Mexico as well a couple of contract rollovers in the North Sea. Our second quarter contract drilling service costs of $197 million were about 12% lower than the first quarter and just below the bottom end of the guidance we gave in May. Our SG&A expenses of $13.7 million were down about 11% from the first quarter and was in the middle of the range we provided in the last quarter.
Ok so revenues came in lighter BUT This management team CUT COST to keep revenues in line with cost GREAT MANAGEMENT!!!
ALSO CFO JUST BOUGHT SHARES YESTERDAY!!!
So the combination of the restructuring initiatives and our expected loss on Mexico allowed us to book a discrete benefit for the second quarter and a reduction of our effective tax rate for the full year. We now expect that our 2015 ETR to be close to zero. But to be clear, a tax rate of 0% does not mean that we don’t have to pay cash taxes. As you know, in some of this jurisdictions we operate such as West Africa, we will have to pay deemed profit taxes meaning the taxes are charged as a percentage of the revenues. This year, we expect that we will have to pay about $30 million in tax payments but the cash taxes will be offset with various deferred tax benefits. So our ETR will be approximately 0%.
Wow paying virtually ZERO TAXES!!! HELL YEAH
Our second quarter CapEx was approximately $62 million. Most of this was for couple of projects that we had to finish for customer contracts. Fortunately, most of the projects are essentially complete and we expect the CapEx for the third and fourth quarter will be lower. The second quarter net cash flow from operations was $97 million. We ended the quarter with $112 million in cash and approximately $343 million of unused capacity on our revolver. So now that we received $292 million proceeds on the Prospector sale leaseback, our liquidity position is very substantial.
Just finished up Capex and will be LOWER NEXT QTR MEANS EVEN MORE POSTIVE CASH FLOWS!!!! :)
Our total debt was less than $2 billion and as of June 30, our leverage ratio was 2.57 times EBITDA. Accounts receivable balance was $356 million. We are still getting a regular payment from Petrobras and Pemex. We are taking down a couple of our receivables from a customer in India and one in West Africa, but we are vigorously pursuing collection from these customers. Obviously we are doing everything we can to bill and collect as quick as possible.
The Total DEBT IS MOSTLY LONG TERM DEBT MOST ALL OF IT IS DUE WAYYYY LATER!!! TALKING YEARS OUT ILL SHOW YOU THIS LATER LETS KEEP GOING STAY WITH ME HERE
Our interest expense will be approximately $120 million to $130 million for the full year and approximately $30 million to $35 million in the third quarter. As I mentioned a few minutes ago, we expect our ETR will be 0%, but we will pay approximately $15 million in cash taxes for the rest of the year.
Finally, we expect our annual CapEx budget to be approximately $190 million to $200 million, down from the $200 million to $220million we guided previously, with $40 million to $50 million in the third quarter. We have not finalized our CapEx budget for 2016 yet. Sufficed to say that the 2016 CapEx budget will be lower than 2015
30 TO 35 Million in interest VS NEARLY 100 MILLION DOLLARS IN CASH FLOWS THEY CAN PAY THIS EASY!!!! LIKE I SAID NO RISK OF BANKRUPTCY HERE AND THIS STOCK IS TRADING LIKE ITS WELL HELL THEY ARE GIVING THE COMPANY AWAY AT THESE PRICES!!!
We continue to secure new contracts for our jackups often at times when competing with high specification is jackups. The vast majority of our jackups are well maintained, fit for purpose, and crude with the experienced component personal. We have no plans to scrap our jackup fleet for the benefit of our competitors or newbuild speculators.
I’ll now brief you on selective markets around the world where we operate. We’ll begin in the Middle East; we're following a successful backlog build in the first quarter. We were able to secure four years of additional backlog with contract extensions on the Dhabi II and the B152. While the contract extensions were at lower rates, our margins on these two contracts on a percentage basis are as good as any in the world.
They still sucuring new contracts and expanding the business even in this "down" enviroment Day rates only down 3% if you want to really call that down if i see a stock down only 3% its not that bad its not the end of the world... yet their day rates drop 3% and the stock market prices the stock like its the end of the world when nothing can be further from the truth
India continues to be another bright spot in the offshore drilling business. ONGC currently has tenders out for 18 rigs and we anticipate additional tenders for three more rigs. In total, ONGC has requirements for 13 jackups, 2 DB, and 6 more floaters. This represents an incremental increase of 7 jackups and 2 floaters.
Hi, I was just wondering -- your comment regarding the competitive situation in the tenders where you have been fairly successful bidding against the new rigs or some of them are even new builds, can you sort of describe the main factors that are the reason for your success, is it price, is it operations, is it track record, could you just wrap it up a little bit?
Even the analyst on the call are impressed
Steve Manz - Chief Financial Officer
Yeah, it is actually fairly simple, it is all three. We are very competitive on price, but we don’t always have to be the lowest in price. Our ongoing operations and prior experience with a lot of our clients give us a leg up against some of our competitors and in a lot of cases we are the incumbent working for these same people, and it is very difficult to displace us in that environment because of our operating history.
Great Answer Great Company W Great Managment team!!!
Lucas Dahl - ABG
Okay. And just one last one. The issue that you mentioned with Petrobras has it sort of resurfaced recently or has it been going on for some time, and are your rigs sort of the only one being targeted?
Steve Manz - Chief Financial Officer
Our rigs are definitely not the only ones being targeted, and in fact Petrobras has already released a number of rigs over the past 12 months. We’ve had ongoing discussions with them for several months now about potentially some blend and extend options, some combination of backlog options, we’ve worked with them on a number of different options. We just haven’t really reached an agreement with them on anything yet. So, I think there is a potential that we are not going to be able to.
Our Rigs are not being targeted like I said this is a GREAT COMPANY!!!
Steve Manz - Chief Financial Officer
Tell you what, if you can bring us a $150 million of bonds, we’ll talk about buying them.
LOL GOTTA LOVE THIS GUY!!!
Good. I wanted to just kind of clarify your lending facilities. I guess what I’m trying to figure out is, you currently have full access to your bank lending facilities, can you discuss what the terms are under which that you can borrow or couldn’t borrow on those facilities and when that expires?
Randy Stilley - President and Chief Executive Officer
It actually doesn’t expire. As long as we’re in compliance with our covenants, we have full access to the revolver.
I encourage you to read through the entire call I Did Cover most of it above The link to it is above Lets Contine keep with me here folks because I am EXCITED!!! AND YOU SHOULD BE TO!!!!
http://www.paragonoffshore.com/ While doing DD take a min to visit their Web site particually liked the part about the management team link here VERY EXPERINCED
http://www.paragonoffshore.com/about/management-team/default.aspx
Ok Lets now go take a look at the 10Q SEC Filing The latest one is here
http://yahoo.brand.edgar-online.com/displayfilinginfo.aspx?FilingID=10860999-1112-221106&type=sect&TabIndex=2&dcn=0001594590-15-000138&nav=1&src=Yahoo
Ok Lets tear it apart there is really only 1 thing I want to focus on is mainly their debt schedule but the 10Q isnt really all that long compared to some other companies I have read so def take a few mins to read it through its entirely so you KNOW What you are buying
ALWAYS DO YOUR DD Folks DD RULES
Number of shares outstanding and trading at July 31, 2015 : 85,985,541 This number has stayed virtually same no dilution here just a tad from company giving shares to employees for doing a great job but they have to earn those
PART I.
FINANCIAL INFORMATION
ITEM 1.
UNAUDITED CONSOLIDATED AND COMBINED FINANCIAL STATEMENTS
PARAGON OFFSHORE plc
CONSOLIDATED AND COMBINED STATEMENTS OF INCOME
(In thousands, except per share amounts)
(Unaudited)
Three Months Ended
Six Months Ended
June 30,
June 30,
2015
2014
2015
2014
Operating revenues
Contract drilling services
$
363,089
$
462,334
$
762,908
$
954,297
Labor contract drilling services
7,206
8,146
14,371
16,357
Reimbursables and other
22,949
8,477
46,613
22,893
393,244
478,957
823,892
993,547
Operating costs and expenses
Contract drilling services
196,969
222,317
422,074
448,780
Labor contract drilling services
5,681
6,223
11,294
12,436
Reimbursables
18,678
5,224
38,656
15,850
Depreciation and amortization
94,673
112,536
184,748
223,120
General and administrative
13,737
12,683
29,101
25,928
Loss on impairment
1,701
—
1,701
—
(Gain) loss on disposal of assets, net
4,078
—
(12,717
)
—
(Gain) on repurchase of long-term debt
—
—
(4,345
)
—
335,517
358,983
670,512
726,114
Operating income
57,727
119,974
153,380
267,433
Other income (expense)
Interest expense, net of amount capitalized
(29,042
)
(2,972
)
(59,237
)
(6,272
)
Interest income and other, net
169
338
2,434
525
Income before income taxes
28,854
117,340
96,577
261,686
Income tax benefit (provision)
18,477
(22,292
)
11,912
(42,075
)
Net income
$
47,331
$
95,048
$
108,489
$
219,611
Net income attributable to non-controlling interest
—
—
(31
)
—
Net income attributable to Paragon Offshore
$
47,331
$
95,048
$
108,458
$
219,611
Earnings per share
Basic and diluted
$
0.51
$
1.12
$
1.19
$
2.59
Weighted-average shares outstanding
Basic and diluted
85,836
84,753
85,549
84,753
See accompanying notes to the unaudited consolidated and combined financial statements.
They have HUGE Revenues as I pointed out above and earnings for the past 6 months is a 1.12$ PER SHARE AND WERE BUYING THE STOCK FOR 70 CENTS HELL YEAH WHAT A STEAL!!!
Net income
$
47,331
$
95,048
$
108,489
$
219,611
Company makes huge amounts of money yeah its down but they still generating HUGE PROFITS AND CASH FLOWS
esp compared to the 60 million market cap what a JOKE Ill have to go tell BUFFET ABOUT THIS ONE PGN
CONSOLIDATED BALANCE SHEETS
(In thousands )
( Unaudited)
June 30,
December 31,
2015
2014
ASSETS
Current assets
Cash and cash equivalents
$
112,359
$
56,772
Restricted cash
—
12,502
Accounts receivable, net of allowance for doubtful accounts
356,132
539,376
Prepaid and other current assets
99,531
104,644
Total current assets
568,022
713,294
Property and equipment, at cost
4,883,872
4,842,112
Accumulated depreciation
(2,565,412
)
(2,431,752
)
Property and equipment, net
2,318,460
2,410,360
Other assets
138,365
129,735
Total assets
$
3,024,847
$
3,253,389
LIABILITIES AND EQUITY
Current liabilities
Current maturities of long-term debt
$
6,500
$
272,166
Accounts payable
131,370
160,874
Accrued payroll and related costs
50,868
81,416
Taxes payable
63,107
69,033
Interest payable
28,837
33,658
Other current liabilities
68,601
105,147
Total current liabilities
349,283
722,294
Long-term debt
1,984,421 2 BILLION LONG TERM DEBT WE WILL SEE THE DEBT SCHEUDLE BELOW keep with me here
1,888,439
Deferred income taxes
39,034
58,497
Other liabilities
53,945
89,910
Total liabilities
2,426,683 OK 2.4 BILLION IN DEBT BUT as we will see below MOST ALL OF THIS IS LONG TERM DEBT!!!
2,759,140
Commitments and contingencies
Equity
Ordinary shares, $0.01 par value, 186,457,393 shares authorized; with 85,985,541 and
84,753,393 issued and outstanding at June 30, 2015 and December 31, 2014, respectively
860
848
Additional paid-in capital
1,422,532 OVER 1.4 BILLION IN PAID IN CAPTIAL NOW WE CAN BUY THE COMPANY FOR 60 MILLION WHAT A STEAL!!!!
1,423,153
Retained deficit
(786,791
)
(895,249
)
Accumulated other comprehensive loss
(38,437
)
(37,144
)
Total shareholders’ equity
598,164
491,608
Non-controlling interest
—
2,641
Total equity
598,164 NEARLY 600 MILLION DOLLARS IN EQUITY VS 60 MILLION MARKET CAP THIS IS VALUE INVESTING FOLKS!!!!
494,249
Total liabilities and equity
$
3,024,847
$
3,253,389
now onto the cash flows
PARAGON OFFSHORE plc
CONSOLIDATED AND COMBINED STATEMENTS OF CASH FLOWS
(In thousands)
(Unaudited)
Six Months Ended
June 30,
2015
2014
Cash flows from operating activities
Net income
$
108,489
$
219,611
Adjustments to reconcile net income to net cash from operating activities:
Depreciation and amortization
184,748
223,120
Loss on impairment
1,701
—
Gain on disposal of assets, net
(12,717
)
—
Gain on repurchase of long-term debt
(4,345
)
—
Deferred income taxes
(27,352
)
(4,640
)
Share-based compensation
9,705
11,757
Provision for doubtful accounts
14,302
—
Net change in other assets and liabilities
32,489
(44,160
)
Net cash provided by operating activities
307,020 307 Million in CASH provided from opperations!!! WOW for a 60 million market cap company come on folks these people selling down here are being robbed!!!
405,688
Cash flows from investing activities
Capital expenditures
(113,071
)
(110,687
)
Proceeds from sale of assets
29,316
6,570
Acquisition of Prospector Offshore Drilling S.A. non-controlling interest
(2,185
)
—
Change in restricted cash
12,502
—
Change in accrued capital expenditures
(12,533
)
13,594
Net cash used in investing activities
(85,971
)
(90,523
)
Cash flows from financing activities
Net change in borrowings on Predecessor bank credit facilities
—
707,472
Net change in borrowings outstanding on Revolving Credit Facility
211,000
—
Repayment of Term Loan Facility
(3,250
)
—
Repayment of Prospector Senior Credit Facility
(265,666
)
—
Repayment of Prospector Bonds
(101,000
)
—
Purchase of Senior Notes
(6,546
)
—
Debt issuance costs
—
(386
)
Net transfers to parent
—
(1,026,144
)
Net cash used in financing activities
(165,462
)
(319,058
)
Net change in cash and cash equivalents
55,587
(3,893
)
Cash and cash equivalents, beginning of period
56,772
36,581
Cash and cash equivalents, end of period
$
112,359
$
32,688
Supplemental information for non-cash activities
Transfer from parent of property and equipment
—
18,124
Adjustments to distributions by former parent
9,493
—
Huge cash flows
NOW HERE I WILL SHOW YOU NO RISK WHATS SO EVER OF BANKRUPTCY!!!!
NOTE 7—DEBT
A summary of long-term debt at June 30, 2015 and December 31, 2014 is as follows:
June 30,
December 31,
(In thousands)
2015
2014
Revolving Credit Facility
$
365,000
$
154,000
Term Loan Facility, bearing interest at 3.75%, net of unamortized discount
642,339
645,357
Senior Notes due 2022, bearing fixed interest at 6.75% per annum DUE WHEN 2022 THIS IS 2015 SO 7 YEARS FROM NOW!!!
456,572
457,572
Senior Notes due 2024, bearing fixed interest at 7.25% per annum DUE WHEN 2024 9 YEARS FROM NOW!!!!
527,010
537,010
Prospector 2019 Second Lien Callable Bond
—
101,000
Prospector 2018 Senior Secured Credit Facility
—
265,666
Total debt
1,990,921
2,160,605
Less: Current maturities of long-term debt
(6,500
)
(272,166
)
Long-term debt
$
1,984,421 MOST ALL OF THIS IS DUE WAYYYY OUT HENCE LONG TERM DEBT!!!! CASH FLOWS ARE HUGE REVENUES IS HUGE!!!!
$
1,888,439
PGN Given the FULL DD Above I give this Stock a VERY STRONG BUY HELL I WOULD BUY THE ENTIRE COMPANY DOWN HERE IF I COULD LOVE THIS MANAGEMENT TEAM LOVE THE COMPANY STRONG BALANCE SHEET STRONG CASH FLOWS EARNINGS HUGE COMPANY GREAT TRADING WITH A MARKET CAP OF ONLY 60 MILLION DOLLARS I WOULDNT EVEN SELL MY SHARES FOR 10$ EVEN GIVEN TODAYS "DEVASATING RATES OF BEING DOWN 3%" LOL WHAT A JOKE STRONG BUY!!!! FULL DD GIVEN!!! DO YOUR HOMEWORK FOLKS!!!! I DID MINE AND SHARED EVERYTHING ABOVE!!! THIS REMINDS ME OF DTG TRADED UNDER 1$ IN 2009 2 YEARS LATER GOT BOUGHT OUT AT 88$ A SHARE CASH FLOWS EARNINGS IT WAS ALL THEIR FOR THE TAKING JUST LIKE PGN IS NOW!!! NO BANKRUPTCY RISK AS I HAVE CLEARLY SHOWED HUGE EARNINGS HUGE CASH FLOWS GREAT BALANCE SHEET LIKE I SAID SOMEONE GIVE BUFFET A CALL BET HE WOULD BUY THIS IN A HEART BEAT!!!
http://finance.yahoo.com/news/paragon-offshore-reports-second-quarter-201100615.html
HOUSTON, Aug. 12, 2015 /PRNewswire/ -- Paragon Offshore plc ("Paragon") (PGN) today reported second quarter 2015 net income of $47.3 million, or $0.51 per diluted share as compared to second quarter 2014 net income of $95.0 million, or $1.12 per diluted share. Results for the quarter include a $4.1 million, or $0.04 per diluted share, loss on the sale of an asset and a $1.7 million, or $0.02 per diluted share, non-cash impairment charge related to assets which the company previously announced it had decided to retire from service. Excluding the above charges, Paragon's adjusted net income (see Reconciliation of GAAP to Non-GAAP Financial Measures Table for a reconciliation to net income) was $53.1 million, or $0.57 per diluted share.
The results for the second quarter include a tax benefit of $18.5 million, as compared to a tax provision of $6.6 million in the first quarter of 2015, primarily as a result of restructuring certain of our operations. For periods prior to Paragon's spin-off from Noble Corporation plc ("Noble") on August 1, 2014 (the "Spin-Off"), results of operations are based on Noble's standard-specification business (our "Predecessor") and include contributions from three standard specification rigs retained by Noble and three standard specification rigs that were sold prior to the Spin-Off. For more information regarding the Spin-Off, please see Paragon's filings with the U.S. Securities and Exchange Commission (the "SEC") available on the company's website at www.paragonoffshore.com.
Ok So the Company Made NET INCOME of 47.3 Million Dollars for the QTR!!!!
PGN Market Cap: 60.19 Million Dollars AND THEY JUST MADE 47.3 MILLION DOLLARS IN A SINGLE QTR!!!!! WOW!!!!!
The company made 1.12$ EPS for the past 6 Months and WERE ABOUT TO BUY THE STOCK TODAY FOR 67 CENTS A SHARE!!!!! OMG WOW WHAT A STEAL!!!!
Must READ BELOW Lets keep going because NOW I AM REALLY EXCITED!!!
Paragon's second quarter 2015 results demonstrate our ongoing ability to deliver safe, reliable and efficient operations while controlling costs and securing additional backlog," said Randall D. Stilley, President and Chief Executive Officer. "Furthermore, we secured $300 million of financing on Prospector 1 and Prospector 5 through the recently closed sale-leaseback transaction, enhancing our cash position and providing Paragon with significant optionality during the challenging days ahead."
Total revenues for the second quarter of 2015 were $393.2 million compared to $430.6 million in the first quarter of 2015. Paragon reported utilization for its marketed rig fleet, which excludes one stacked floater, as 69 percent for the second quarter of 2015, as compared to 74 percent in the first quarter of 2015. Average daily revenues decreased three percent in the second quarter of 2015 to $149,000 per rig compared to the previous quarter average of $152,000 per rig. Contract drilling operating costs declined in the second quarter to $197.0 million compared to $225.1 million in the first quarter of 2015.
Net cash from operating activities was $96.6 million in the second quarter of 2015 as compared to $210.4 million for the first quarter of 2015. Capital expenditures in the second quarter totaled $62.4 million. At June 30, 2015, liquidity, defined as cash and cash equivalents plus availability under the company's revolving credit facility, totaled $454.9 million while our leverage ratio, the ratio of the company's net debt to trailing twelve months EBITDA, as defined in the company's revolving credit facility, was 2.6 at June 30, 2015.
Total revenues for the second quarter of 2015 were $393.2 million IN REVENUES FOR 1 QTR THIS COMPANY IS HUGE THEY ARE DOING 393 MILLION IN REVENUES!!!! ALSO READ ON AVG DAILY REVENUES DROPPED BY ONLY 3 PERCENT!!!! THE WAY THE STOCK PRICE HAS COLLAPSED YOU WOULD THINK THAT THEY WOULD BE DOWN 50% OR MORE!!!! BUT NO ONLY DOWN 3% NOT THAT BIG OF A DROP AND KEEP IN MIND THE COMPANY IS MAKING OVER 47 MILLION DOLLARS!!!! IN A SINGLE QTR VS A MARKET CAP OF ONLY 60 MILLION DOLLARS!!!! ALSO I DID ALOT OF DD LAST NIGHT I WILL TELL YOU THIS THERE IS NO RISK OF BANKRUPTCY HERE ILL SHOW YOU THIS FACT LATER ON LETS KEEP GOING GOT TO GO TO THE SEC FILING FOR THAT INFORMATION
Net cash from operating activities was $96.6 million in the second quarter of 2015 Company is generating HUGE Sums of Cash Cash flows of 96.6 Million in the Second Qtr along this is MORE CASH THEN WHAT THE ENTIRE MARKET CAP OF THE COMPANY IS 60 MILLION MARKET CAP VS 96.6 MILLION IN CASH FLOWS!!!!
THIS COMPANY REMINDS ME OF DTG AT UNDER A 1$ 2 YEARS LATER GOT BOUGHT OUT AT 88$ A SHARE
At June 30, 2015, liquidity, defined as cash and cash equivalents plus availability under the company's revolving credit facility, totaled $454.9 million while our leverage ratio, the ratio of the company's net debt to trailing twelve months EBITDA, as defined in the company's revolving credit facility, was 2.6 at June 30, 2015.
On July 24, 2015 the company closed a sale-leaseback transaction in connection with Prospector 1 and Prospector 5. Net of fees and expenses, the company received proceeds of approximately $292.0 million of which $23.0 million is required to be maintained in certain restricted accounts, leaving the company with available proceeds of approximately $269.0 million. The company's cash and cash equivalents as of June 30, 2015 adjusted for the available funds from the sale-leaseback transaction plus availability under the company's revolving credit facility, results in a pro forma liquidity of $723.9 million.
723.9 Million in Cash HOW IN THE HELL DID THIS STOCK EVER GET THIS LOW
Operating Highlights
Paragon's total contract backlog at June 30, 2015 was an estimated $1.6 billion compared to $1.9 billion at March 31, 2015.
1.6 BILLION DOLLAR BACKLOG WOW!!!!!!
Utilization of Paragon's marketed floating rig fleet was 100 percent in the second quarter and in the first quarter of 2015. Average daily revenues for Paragon's floating rig fleet decreased seven percent to $258,000 per rig in the second quarter of 2015 from $277,000 per rig in the first quarter of 2015.
So While Revenues has declined some 100% fleet is being used company is still profitable as we will see below company has Cut Cost and kept opperations profitable and ALL Their Rigs Working ALSO This company is much more diversified then NADL I was looking at it orignally then i found this company NADL Has a market cap of 183 Million VS PGN 60 Million AND PGN Has more revenues bigger backlog and WAY MORE DIVERSIFIED THEY DO PROJECTS ALL OVER THE WORLD AS WHERE NADL MAINLY DOES IT IN THE NORTH ALTLANTIC REGION PGN CHEAPER BIGGER REVENUES BETTER BALANCE SHEET
NO BANKRUPTCY RISK AT ALL ILL SHOW YOU THIS IN DETAIL LATER ONCE WE GET TO THE 10Q SEC FILINGS
Second quarter 2015 utilization of Paragon's marketed jackup rig fleet decreased to 64 percent compared to the 71 percent utilization achieved during the first quarter of 2015. Average daily revenues for Paragon's jackup fleet during the second quarter declined by two percent to $124,000 per rig from $127,000 per rig during the first quarter of 2015.
At the end of the second quarter of 2015, an estimated 57 percent of the marketed rig operating days were committed for 2015, including 87 percent and 52 percent of the floating and jackup rig days, respectively. The calculations for committed operating days exclude available days related to one floating unit that is stacked.
During the quarter, Paragon added approximately $89.9 million in backlog related primarily to previously disclosed new contracts and extensions in India, the Middle East and West Africa. In India, the Paragon MDS1 received a contract extension from mid-April 2015 to mid-August 2015 at a dayrate of $97,000. In the Middle East, the Paragon L784 received a contract award from early June 2015 to early June 2018, at a dayrate of $88,000 from early June 2015 to early June 2016 and $95,000 from early June 2016 to early June 2018. In West Africa, the Paragon M826 received a new contract from mid-August 2015 to mid-December 2015 at a dayrate of $105,000.
In addition, Paragon added approximately $200.0 million in backlog related to contracts and extensions announced in its July 13, 2015 and August 10, 2015 Fleet Status Reports. In the Middle East, the Paragon B152 received a contract extension from late November 2015 to late November 2017 at a rate of $81,000 while the Dhabi II received a contract extension from mid-July 2015 to mid-July 2017 at a dayrate of $76,000. In the North Sea, the Paragon C461 received a contract extension from mid-November 2015 to mid-November 2017 at a dayrate of $113,000. The Paragon C20051 received a contract extension from early December 2015 to late May 2016 at dayrates between $125,000 and $135,000. In addition, we agreed to a backlog swap between the Paragon C462 and Paragon C463 and received a contract extension from late December 2015 to early March 2016 on the Paragon C463 at a dayrate of $130,000.
All Positives
Outlook
Mr. Stilley concluded, "As we anticipated, the offshore drilling environment has deteriorated further since the quarter ended and there is no improvement on the near-term horizon, particularly in the floating rig market segment where there is an oversupply of assets and very little demand. The shallow water segment has worsened as well and also faces supply challenges, though we see few speculative newbuild jackups coming to market and securing contracts. In fact, Paragon's low-cost, high-quality focus has enabled us to win work in the few regions where there has been demand. Our cash position is strong and we continue to reduce costs aggressively as we do not expect a quick recovery in our markets."
This is what I like to hear from management they are cutting cost shoring up their balance sheet AND STILL VERY PROFITABLE WITH VERY STRONG CASH FLOWS AND A HUGE BACK LOG 1.6 BILLION DOLLAR BACK LOG Rates only down 3% STOCKS DOWN OVER 90%
EXTREMLY OVER SOLD AND EXTREMLY UNDERVALUED FULL DD LETS KEEP GOING!!!!
About Paragon Offshore
Paragon is a global provider of offshore drilling rigs. Paragon's operated fleet includes 34 jackups, including two high specification heavy duty/harsh environment jackups, and six floaters (four drillships and two semisubmersibles). Paragon's primary business is contracting its rigs, related equipment and work crews to conduct oil and gas drilling and workover operations for its exploration and production customers on a dayrate basis around the world. Paragon's principal executive offices are located in Houston, Texas. Paragon is a public limited company registered in England and Wales with company number 08814042 and registered office at 20-22 Bedford Row, London, WC1R 4JS, England. Additional information is available at www.paragonoffshore.com.
They are off shore Drilling Rig Company This is a HUGE Company folks with huge revenues huge cash flows huge earnings!!!! and a market cap that is down NEXT TO NOTHING!!! 60 MILLION MARKET CAP VS 47 MILLION DOLLARS IN EARNINGS FOR A SINGLE QTR!!!! CASH FLOWS OF 96 MILLION FOR A SINGLE QTR!!!!
Conference Call
Paragon also scheduled a teleconference and webcast related to its second quarter 2015 results on Thursday, August 13, 2015, at 8:00 a.m. U.S. Central Time. The teleconference can be accessed from the U.S. and Canada by dialing 1-888-771-4371, or internationally by dialing 1-847-585-4405, and using access code: 40293273. Interested parties may also listen to the webcast through a link posted on Paragon's website at www.paragonoffshore.com, under "Events & Presentations" in the "Investor Relations" section of the website.
I Done Read the transcript of the entire CC Link Here
http://seekingalpha.com/article/3436486-paragon-offshores-pgn-ceo-randy-stilley-on-q2-2015-results-earnings-call-transcript
Last night, we reported results that were well ahead of expectations. Operationally, we continue to perform well with unpaid downtime of less than 2%. Costs were below the low end of our guidance, thanks to our focused cost control efforts, and as Steve will discuss further, we’ve been successful in some internal restructuring that provided a significant tax benefit in the second quarter, and we expect it will continue for some time.
Thats the CEO Speaking above very positive comments
Last quarter, I outlined five near term priorities for Paragon. First, I said that we needed to reduce our operating cost and capital expenditures to preserve contract drilling margins and liquidity. We’ve done so bringing OpEx below our most recent guidance. We are also updating our guidance today to reduce full-year CapEx spending to below $200 million for 2015. To be sure, stacking rigs has helped lower CapEx and OpEx, but we are keenly focused on taking additional costs out of the system as quickly as possible in an environment that could be lower for longer.
Company is cutting cost and reducing capex spending sounds like we have a great management team in place here
Next, we said that we were going to refinance the debt from the Prospector acquisition. Our recently closed sale leaseback delivered on that promise providing $300 million of financing at attractive rates and enhancing Paragon’s liquidity. Adding the net proceeds from the sale leaseback to our cash and revolver availability as of June 30 gives us a pro forma liquidity of approximately $725 million and reduces our net debt.
Tackling debt getting lower rates thats positive
Third, we told you we had aggressively pursued new contracts. Our marketing team has done a great job in leveraging customer relationships, and our record of operational excellence is to secure contracts in the North Sea, Middle East, and Africa. In one of the few drilling contractors, there has been success recently and we are winning work with older standard rigs rather than newer high spec rigs. Of course, we can’t create work. Some of our customers suffered from severely reduced budgets, commodity prices that are simply too low to make drilling opportunities economic or other internal issues that have resulted in reduced activity. But where we have opportunities, we are more than competitive and we’ll continue to be aggressive in securing new work for our rigs.
Sounds like they are working hard to get work i like to hear that!!!
Fourth, we talked about strengthening our balance sheet to position Paragon for the long term. Many of you have asked what our intentions are for the funds raised through the sale leaseback. We have a range of possibilities and we are not prepared to provide you with an answer today. However, we are carefully analyzing our options, and when the time is right, we will announce our intentions. For now, I won’t emphasize our increased liquidity and the flexibility that it potentially provides.
I am going to SHOW LATER IN MY DD THESE FEARS ARE WAYYYY OVER BLOWEN LETS CONTINUE
Fifth, we said that we would maintain our focus on being the high quality, low cost, safe and reliable drilling contractor. We believe our revenue efficiency and our ability to secure additional work in this difficult environment speaks to our success in this area. This is a key differentiator for Paragon, and sophisticated customers realize that it is not just about how new an asset is, rather it’s the people and the processes of how [indiscernible] assets dictate success. Paragon has some of the best of both.
This Sounds like a great Company With great management!!!!
This sounds like a company that Warren Buffet Would want to Buy!!
Despite our successes, our equity has struggled. You are aware that we recently received a notice of non-compliance from the NYSE regarding our share price and its 30-day trading average. As we said in our recent release, we intend to take steps to cure on our compliance within the allotted timeframe. There is no denying, it’s a very difficult time in the industry and it’s likely to remain so for the foreseeable future. At Paragon, we are focused on controlling what’s within our power to control and managing through the rest. We have an experienced management team that’s seen [indiscernible] before and I want to reiterate that Paragon is planning for the long term.
I dont care about that In FACT I AM LOVING THESE LOW STOCK PRICES CURRENTLY SO I CAN LOAD UP ON A GREAT COMPANY WITH HUGE REVENUES CASH FLOWS EARNINGS!!!! WITH GREAT MANAGEMENT TEAM!!!
CFO
Thank you, Randy, and good morning to everyone on the call. We had another really solid quarter. We ended up with approximately $158 million in EBITDA, which is slightly lower than the $167 million in the first quarter. Despite the fact that our contract drilling service revenue were lower versus the first quarter, it’s a testament to our ability to manage our cost and to react to market changes.
Slightly Lower Revenues BUT does that justify a 90%+ Drop in the stock price?? HELL NO!!! WHAT A BUYING OPT!!!
Here are some of the second quarter highlights. We had contract drilling service revenues of $363 million, which is about 9% lower than the first quarter. A big piece of that was the lower revenue from Mexico as well a couple of contract rollovers in the North Sea. Our second quarter contract drilling service costs of $197 million were about 12% lower than the first quarter and just below the bottom end of the guidance we gave in May. Our SG&A expenses of $13.7 million were down about 11% from the first quarter and was in the middle of the range we provided in the last quarter.
Ok so revenues came in lighter BUT This management team CUT COST to keep revenues in line with cost GREAT MANAGEMENT!!!
ALSO CFO JUST BOUGHT SHARES YESTERDAY!!!
So the combination of the restructuring initiatives and our expected loss on Mexico allowed us to book a discrete benefit for the second quarter and a reduction of our effective tax rate for the full year. We now expect that our 2015 ETR to be close to zero. But to be clear, a tax rate of 0% does not mean that we don’t have to pay cash taxes. As you know, in some of this jurisdictions we operate such as West Africa, we will have to pay deemed profit taxes meaning the taxes are charged as a percentage of the revenues. This year, we expect that we will have to pay about $30 million in tax payments but the cash taxes will be offset with various deferred tax benefits. So our ETR will be approximately 0%.
Wow paying virtually ZERO TAXES!!! HELL YEAH
Our second quarter CapEx was approximately $62 million. Most of this was for couple of projects that we had to finish for customer contracts. Fortunately, most of the projects are essentially complete and we expect the CapEx for the third and fourth quarter will be lower. The second quarter net cash flow from operations was $97 million. We ended the quarter with $112 million in cash and approximately $343 million of unused capacity on our revolver. So now that we received $292 million proceeds on the Prospector sale leaseback, our liquidity position is very substantial.
Just finished up Capex and will be LOWER NEXT QTR MEANS EVEN MORE POSTIVE CASH FLOWS!!!! :)
Our total debt was less than $2 billion and as of June 30, our leverage ratio was 2.57 times EBITDA. Accounts receivable balance was $356 million. We are still getting a regular payment from Petrobras and Pemex. We are taking down a couple of our receivables from a customer in India and one in West Africa, but we are vigorously pursuing collection from these customers. Obviously we are doing everything we can to bill and collect as quick as possible.
The Total DEBT IS MOSTLY LONG TERM DEBT MOST ALL OF IT IS DUE WAYYYY LATER!!! TALKING YEARS OUT ILL SHOW YOU THIS LATER LETS KEEP GOING STAY WITH ME HERE
Our interest expense will be approximately $120 million to $130 million for the full year and approximately $30 million to $35 million in the third quarter. As I mentioned a few minutes ago, we expect our ETR will be 0%, but we will pay approximately $15 million in cash taxes for the rest of the year.
Finally, we expect our annual CapEx budget to be approximately $190 million to $200 million, down from the $200 million to $220million we guided previously, with $40 million to $50 million in the third quarter. We have not finalized our CapEx budget for 2016 yet. Sufficed to say that the 2016 CapEx budget will be lower than 2015
30 TO 35 Million in interest VS NEARLY 100 MILLION DOLLARS IN CASH FLOWS THEY CAN PAY THIS EASY!!!! LIKE I SAID NO RISK OF BANKRUPTCY HERE AND THIS STOCK IS TRADING LIKE ITS WELL HELL THEY ARE GIVING THE COMPANY AWAY AT THESE PRICES!!!
We continue to secure new contracts for our jackups often at times when competing with high specification is jackups. The vast majority of our jackups are well maintained, fit for purpose, and crude with the experienced component personal. We have no plans to scrap our jackup fleet for the benefit of our competitors or newbuild speculators.
I’ll now brief you on selective markets around the world where we operate. We’ll begin in the Middle East; we're following a successful backlog build in the first quarter. We were able to secure four years of additional backlog with contract extensions on the Dhabi II and the B152. While the contract extensions were at lower rates, our margins on these two contracts on a percentage basis are as good as any in the world.
They still sucuring new contracts and expanding the business even in this "down" enviroment Day rates only down 3% if you want to really call that down if i see a stock down only 3% its not that bad its not the end of the world... yet their day rates drop 3% and the stock market prices the stock like its the end of the world when nothing can be further from the truth
India continues to be another bright spot in the offshore drilling business. ONGC currently has tenders out for 18 rigs and we anticipate additional tenders for three more rigs. In total, ONGC has requirements for 13 jackups, 2 DB, and 6 more floaters. This represents an incremental increase of 7 jackups and 2 floaters.
Hi, I was just wondering -- your comment regarding the competitive situation in the tenders where you have been fairly successful bidding against the new rigs or some of them are even new builds, can you sort of describe the main factors that are the reason for your success, is it price, is it operations, is it track record, could you just wrap it up a little bit?
Even the analyst on the call are impressed
Steve Manz - Chief Financial Officer
Yeah, it is actually fairly simple, it is all three. We are very competitive on price, but we don’t always have to be the lowest in price. Our ongoing operations and prior experience with a lot of our clients give us a leg up against some of our competitors and in a lot of cases we are the incumbent working for these same people, and it is very difficult to displace us in that environment because of our operating history.
Great Answer Great Company W Great Managment team!!!
Lucas Dahl - ABG
Okay. And just one last one. The issue that you mentioned with Petrobras has it sort of resurfaced recently or has it been going on for some time, and are your rigs sort of the only one being targeted?
Steve Manz - Chief Financial Officer
Our rigs are definitely not the only ones being targeted, and in fact Petrobras has already released a number of rigs over the past 12 months. We’ve had ongoing discussions with them for several months now about potentially some blend and extend options, some combination of backlog options, we’ve worked with them on a number of different options. We just haven’t really reached an agreement with them on anything yet. So, I think there is a potential that we are not going to be able to.
Our Rigs are not being targeted like I said this is a GREAT COMPANY!!!
Steve Manz - Chief Financial Officer
Tell you what, if you can bring us a $150 million of bonds, we’ll talk about buying them.
LOL GOTTA LOVE THIS GUY!!!
Good. I wanted to just kind of clarify your lending facilities. I guess what I’m trying to figure out is, you currently have full access to your bank lending facilities, can you discuss what the terms are under which that you can borrow or couldn’t borrow on those facilities and when that expires?
Randy Stilley - President and Chief Executive Officer
It actually doesn’t expire. As long as we’re in compliance with our covenants, we have full access to the revolver.
I encourage you to read through the entire call I Did Cover most of it above The link to it is above Lets Contine keep with me here folks because I am EXCITED!!! AND YOU SHOULD BE TO!!!!
http://www.paragonoffshore.com/ While doing DD take a min to visit their Web site particually liked the part about the management team link here VERY EXPERINCED
http://www.paragonoffshore.com/about/management-team/default.aspx
Ok Lets now go take a look at the 10Q SEC Filing The latest one is here
http://yahoo.brand.edgar-online.com/displayfilinginfo.aspx?FilingID=10860999-1112-221106&type=sect&TabIndex=2&dcn=0001594590-15-000138&nav=1&src=Yahoo
Ok Lets tear it apart there is really only 1 thing I want to focus on is mainly their debt schedule but the 10Q isnt really all that long compared to some other companies I have read so def take a few mins to read it through its entirely so you KNOW What you are buying
ALWAYS DO YOUR DD Folks DD RULES
Number of shares outstanding and trading at July 31, 2015 : 85,985,541 This number has stayed virtually same no dilution here just a tad from company giving shares to employees for doing a great job but they have to earn those
PART I.
FINANCIAL INFORMATION
ITEM 1.
UNAUDITED CONSOLIDATED AND COMBINED FINANCIAL STATEMENTS
PARAGON OFFSHORE plc
CONSOLIDATED AND COMBINED STATEMENTS OF INCOME
(In thousands, except per share amounts)
(Unaudited)
Three Months Ended
Six Months Ended
June 30,
June 30,
2015
2014
2015
2014
Operating revenues
Contract drilling services
$
363,089
$
462,334
$
762,908
$
954,297
Labor contract drilling services
7,206
8,146
14,371
16,357
Reimbursables and other
22,949
8,477
46,613
22,893
393,244
478,957
823,892
993,547
Operating costs and expenses
Contract drilling services
196,969
222,317
422,074
448,780
Labor contract drilling services
5,681
6,223
11,294
12,436
Reimbursables
18,678
5,224
38,656
15,850
Depreciation and amortization
94,673
112,536
184,748
223,120
General and administrative
13,737
12,683
29,101
25,928
Loss on impairment
1,701
—
1,701
—
(Gain) loss on disposal of assets, net
4,078
—
(12,717
)
—
(Gain) on repurchase of long-term debt
—
—
(4,345
)
—
335,517
358,983
670,512
726,114
Operating income
57,727
119,974
153,380
267,433
Other income (expense)
Interest expense, net of amount capitalized
(29,042
)
(2,972
)
(59,237
)
(6,272
)
Interest income and other, net
169
338
2,434
525
Income before income taxes
28,854
117,340
96,577
261,686
Income tax benefit (provision)
18,477
(22,292
)
11,912
(42,075
)
Net income
$
47,331
$
95,048
$
108,489
$
219,611
Net income attributable to non-controlling interest
—
—
(31
)
—
Net income attributable to Paragon Offshore
$
47,331
$
95,048
$
108,458
$
219,611
Earnings per share
Basic and diluted
$
0.51
$
1.12
$
1.19
$
2.59
Weighted-average shares outstanding
Basic and diluted
85,836
84,753
85,549
84,753
See accompanying notes to the unaudited consolidated and combined financial statements.
They have HUGE Revenues as I pointed out above and earnings for the past 6 months is a 1.12$ PER SHARE AND WERE BUYING THE STOCK FOR 70 CENTS HELL YEAH WHAT A STEAL!!!
Net income
$
47,331
$
95,048
$
108,489
$
219,611
Company makes huge amounts of money yeah its down but they still generating HUGE PROFITS AND CASH FLOWS
esp compared to the 60 million market cap what a JOKE Ill have to go tell BUFFET ABOUT THIS ONE PGN
CONSOLIDATED BALANCE SHEETS
(In thousands )
( Unaudited)
June 30,
December 31,
2015
2014
ASSETS
Current assets
Cash and cash equivalents
$
112,359
$
56,772
Restricted cash
—
12,502
Accounts receivable, net of allowance for doubtful accounts
356,132
539,376
Prepaid and other current assets
99,531
104,644
Total current assets
568,022
713,294
Property and equipment, at cost
4,883,872
4,842,112
Accumulated depreciation
(2,565,412
)
(2,431,752
)
Property and equipment, net
2,318,460
2,410,360
Other assets
138,365
129,735
Total assets
$
3,024,847
$
3,253,389
LIABILITIES AND EQUITY
Current liabilities
Current maturities of long-term debt
$
6,500
$
272,166
Accounts payable
131,370
160,874
Accrued payroll and related costs
50,868
81,416
Taxes payable
63,107
69,033
Interest payable
28,837
33,658
Other current liabilities
68,601
105,147
Total current liabilities
349,283
722,294
Long-term debt
1,984,421 2 BILLION LONG TERM DEBT WE WILL SEE THE DEBT SCHEUDLE BELOW keep with me here
1,888,439
Deferred income taxes
39,034
58,497
Other liabilities
53,945
89,910
Total liabilities
2,426,683 OK 2.4 BILLION IN DEBT BUT as we will see below MOST ALL OF THIS IS LONG TERM DEBT!!!
2,759,140
Commitments and contingencies
Equity
Ordinary shares, $0.01 par value, 186,457,393 shares authorized; with 85,985,541 and
84,753,393 issued and outstanding at June 30, 2015 and December 31, 2014, respectively
860
848
Additional paid-in capital
1,422,532 OVER 1.4 BILLION IN PAID IN CAPTIAL NOW WE CAN BUY THE COMPANY FOR 60 MILLION WHAT A STEAL!!!!
1,423,153
Retained deficit
(786,791
)
(895,249
)
Accumulated other comprehensive loss
(38,437
)
(37,144
)
Total shareholders’ equity
598,164
491,608
Non-controlling interest
—
2,641
Total equity
598,164 NEARLY 600 MILLION DOLLARS IN EQUITY VS 60 MILLION MARKET CAP THIS IS VALUE INVESTING FOLKS!!!!
494,249
Total liabilities and equity
$
3,024,847
$
3,253,389
now onto the cash flows
PARAGON OFFSHORE plc
CONSOLIDATED AND COMBINED STATEMENTS OF CASH FLOWS
(In thousands)
(Unaudited)
Six Months Ended
June 30,
2015
2014
Cash flows from operating activities
Net income
$
108,489
$
219,611
Adjustments to reconcile net income to net cash from operating activities:
Depreciation and amortization
184,748
223,120
Loss on impairment
1,701
—
Gain on disposal of assets, net
(12,717
)
—
Gain on repurchase of long-term debt
(4,345
)
—
Deferred income taxes
(27,352
)
(4,640
)
Share-based compensation
9,705
11,757
Provision for doubtful accounts
14,302
—
Net change in other assets and liabilities
32,489
(44,160
)
Net cash provided by operating activities
307,020 307 Million in CASH provided from opperations!!! WOW for a 60 million market cap company come on folks these people selling down here are being robbed!!!
405,688
Cash flows from investing activities
Capital expenditures
(113,071
)
(110,687
)
Proceeds from sale of assets
29,316
6,570
Acquisition of Prospector Offshore Drilling S.A. non-controlling interest
(2,185
)
—
Change in restricted cash
12,502
—
Change in accrued capital expenditures
(12,533
)
13,594
Net cash used in investing activities
(85,971
)
(90,523
)
Cash flows from financing activities
Net change in borrowings on Predecessor bank credit facilities
—
707,472
Net change in borrowings outstanding on Revolving Credit Facility
211,000
—
Repayment of Term Loan Facility
(3,250
)
—
Repayment of Prospector Senior Credit Facility
(265,666
)
—
Repayment of Prospector Bonds
(101,000
)
—
Purchase of Senior Notes
(6,546
)
—
Debt issuance costs
—
(386
)
Net transfers to parent
—
(1,026,144
)
Net cash used in financing activities
(165,462
)
(319,058
)
Net change in cash and cash equivalents
55,587
(3,893
)
Cash and cash equivalents, beginning of period
56,772
36,581
Cash and cash equivalents, end of period
$
112,359
$
32,688
Supplemental information for non-cash activities
Transfer from parent of property and equipment
—
18,124
Adjustments to distributions by former parent
9,493
—
Huge cash flows
NOW HERE I WILL SHOW YOU NO RISK WHATS SO EVER OF BANKRUPTCY!!!!
NOTE 7—DEBT
A summary of long-term debt at June 30, 2015 and December 31, 2014 is as follows:
June 30,
December 31,
(In thousands)
2015
2014
Revolving Credit Facility
$
365,000
$
154,000
Term Loan Facility, bearing interest at 3.75%, net of unamortized discount
642,339
645,357
Senior Notes due 2022, bearing fixed interest at 6.75% per annum DUE WHEN 2022 THIS IS 2015 SO 7 YEARS FROM NOW!!!
456,572
457,572
Senior Notes due 2024, bearing fixed interest at 7.25% per annum DUE WHEN 2024 9 YEARS FROM NOW!!!!
527,010
537,010
Prospector 2019 Second Lien Callable Bond
—
101,000
Prospector 2018 Senior Secured Credit Facility
—
265,666
Total debt
1,990,921
2,160,605
Less: Current maturities of long-term debt
(6,500
)
(272,166
)
Long-term debt
$
1,984,421 MOST ALL OF THIS IS DUE WAYYYY OUT HENCE LONG TERM DEBT!!!! CASH FLOWS ARE HUGE REVENUES IS HUGE!!!!
$
1,888,439
PGN Given the FULL DD Above I give this Stock a VERY STRONG BUY HELL I WOULD BUY THE ENTIRE COMPANY DOWN HERE IF I COULD LOVE THIS MANAGEMENT TEAM LOVE THE COMPANY STRONG BALANCE SHEET STRONG CASH FLOWS EARNINGS HUGE COMPANY GREAT TRADING WITH A MARKET CAP OF ONLY 60 MILLION DOLLARS I WOULDNT EVEN SELL MY SHARES FOR 10$ EVEN GIVEN TODAYS "DEVASATING RATES OF BEING DOWN 3%" LOL WHAT A JOKE STRONG BUY!!!! FULL DD GIVEN!!! DO YOUR HOMEWORK FOLKS!!!! I DID MINE AND SHARED EVERYTHING ABOVE!!! THIS REMINDS ME OF DTG TRADED UNDER 1$ IN 2009 2 YEARS LATER GOT BOUGHT OUT AT 88$ A SHARE CASH FLOWS EARNINGS IT WAS ALL THEIR FOR THE TAKING JUST LIKE PGN IS NOW!!! NO BANKRUPTCY RISK AS I HAVE CLEARLY SHOWED HUGE EARNINGS HUGE CASH FLOWS GREAT BALANCE SHEET LIKE I SAID SOMEONE GIVE BUFFET A CALL BET HE WOULD BUY THIS IN A HEART BEAT!!!
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