Savvy Trades and Investments

[researcher59]

FTSI (0.35) is down over 96% from its 52wk high and at this price it's like a stock option .... might go to zero but could be a multibagger within 12 to 18 months. I'm leaning more to to the pessimistic outcome. Q1 was bad with 16 rigs operating, but they expect only 3 to 4 operating in Q2. Recovery in subequent quarters will probably be very slow .... bankruptcy is a real possibility, maybe even inevitable unless oil prices are back over $40 by next year. jmho

4/14 WSJ -

Hydraulic fracturing company FTS International Inc. has engaged
restructuring advisers to help navigate the threat to its balance sheet
caused by the slump in commodity prices amid the coronavirus pandemic, said
people familiar with the matter.
FTS, which provides shale drilling and well completion services for
energy companies, has hired Lazard Ltd. and Kirkland & Ellis LLP as
financial adviser and legal counsel, respectively, the people said.
A group of FTS bondholders has hired the law firm Davis Polk & Wardwell
LLP, the people said.
Representatives of FTS, Lazard, Kirkland, and Davis Polk didn't respond
to requests for comment.
FTS said last month that many of its customers were canceling projects
due to the "unprecedented conditions in the oil market." The company said it
was furloughing crews, cutting executive salaries by 25% on top of a 15%
reduction already set for this year, and suspending bonuses for certain
employees.
Fuel consumption has dropped sharply because of the coronavirus pandemic
and the industry took another body blow when a price war erupted between
Saudi Arabia and Russia.
Energy prices ticked up slightly Monday after 23 oil-producing nations,
including the U.S., struck a deal over the weekend to limit production. But
crude prices are still depressed, with West Texas Intermediate crude still
trading in the low $20s per barrel, largely due to the pandemic's impact on
global demand.
The harsh environment for energy companies has led many drillers to shut
down even producing wells because there are few or no buyers for their
output.
FTS, which operates in the five most well-known shale basins in the U.S.,
counts major producers such as Anadarko Petroleum Corp, a subsidiary of
Occidental Petroleum Corp., and Diamondback Energy Inc. among its customers.

Occidental said in March that it would reduce 2020 capital spending by
about 47% to a range of $2.7 billion to $2.9 billion due to low commodity
prices.
FTS is carrying about $460 million in funded debt, which includes $375
million owed to bondholders. The bonds, which mature in 2022, were trading
at 28 cents on the dollar Monday, down from 68 in early March, according to
MarketAxess.