20 June 2011production update▲ Good
The fleet kept re-contracting at improving rates (into the $34-44K range) with new customers coming on.
Announcements, explained
Each one in plain English, with the numbers worked through for a shareholder.
25 May 2011production update▼ Bad
Hercules itself cancelled a contract on one of its former Seahawk rigs and scheduled it for demobilization, while a few more liftboats went cold-stacked.
27 Apr 2011asset acquisition disposition▲ GoodMajor
Hercules closed its acquisition of Seahawk Drilling's 20 Gulf of Mexico jackup rigs, funded with about 22.3 million new Hercules shares plus roughly $25 million cash -- completing the consolidation of a bankrupt competitor's fleet.
27 Apr 2011production update▲ Good
Chevron extended a rig through year-end with two six-month options and agreed to reimburse $3.3 million in repair costs, and Hercules signed a letter of intent for new work in Congo with Perenco at $66-68K -- international diversification continuing.
5 Apr 2011material agreement▲ Good
The bankruptcy court approved Hercules's purchase of Seahawk Drilling's jackup fleet, clearing a key condition for the deal to close.
22 Mar 2011production update● Neutral
Several rigs cycled through scheduled five-year regulatory recertification surveys while dayrates held in the $32-38K range; Gulf of Mexico permit delays remained a standing risk factor.
8 Mar 2011debt financing▼ Bad
To help fund the Seahawk acquisition, Hercules amended its credit agreement, but lenders used the opening to cut its revolving credit line from $175 million to $140 million and raise its borrowing rates -- credit terms tightening even as the deal moved forward.
16 Feb 2011production update▲ Good
Hilcorp extended at a higher $39-41K dayrate and the Chevron-contracted barge rig locked in a long-term rate of $73-75K -- the rate recovery continuing into 2011.
11 Feb 2011capital raising announcement▲ GoodMajor
Hercules agreed to buy all 20 jackup rigs of rival Seahawk Drilling out of Chapter 11 bankruptcy for $100 million ($25 million cash plus 22.3 million Hercules shares valued at just $3.36 each, versus the $33.95 it had paid for its own stock in 2008) -- consolidating the jackup market as a weaker competitor failed, while also flagging a non-cash impairment on its own cold-stacked rigs amid the post-Macondo drilling slowdown.
12 Jan 2011production update▲ Good
Chevron's rate stepped up again (to $35-37K, extended to mid-2011) and rigs began five-year regulatory recertification surveys -- continued gradual normalization.
15 Dec 2010production update▲ Good
Domestic dayrates edged up further and several rigs began scheduling multi-week regulatory surveys well into 2011 -- a sign of renewed confidence in longer-term work.
18 Nov 2010production update● Neutral
The new three-year Angola contract was confirmed, but domestic average contract duration fell further to just 27 days -- the moratorium's chilling effect on new U.S. commitments still visible even as rates held.
21 Oct 2010production update▲ Good
The long-idle international rig Hercules 185 landed a new three-year contract with Chevron's Angola unit at $59-61K starting around January 2011 -- a bright spot offsetting the still-chilled domestic Gulf of Mexico market.
21 Sept 2010production update▼ Bad
Average contract duration fell to just 41 days as customers avoided longer commitments under the moratorium, even as dayrates held around $31-37K.
17 Aug 2010production update▼ Bad
Rigs continued to sit "pending permit" as the drilling moratorium persisted, with dayrates flat and the idle international rig still on reduced standby.
20 July 2010production update▼ Bad
Domestic dayrates held flat around $31-35K as new work increasingly depended on customers getting drilling permits under the post-Macondo moratorium.
23 June 2010production update▼ BadMajor
Hercules said new MMS safety and supplemental-plan notices issued June 8 and June 18, 2010 could delay customers' Gulf of Mexico drilling permits. It expected its idle rigs and those finishing contracts to struggle to win new work until permits were issued.
24 May 2010production update● Neutral
The improved $31-37K dayrate range held, with about a dozen rigs still cold-stacked.
28 Apr 2010production update▲ Good
Chevron's indexed dayrate rose for the first time since the crash (to $31-33K, with a new extension through year-end), and other rigs re-priced up to $31-35K -- a genuine recovery signal.
18 Mar 2010production update● Neutral
The gradual recovery continued, with one rig mobilized in from Mexico to pick up domestic work.
24 Feb 2010production update▲ Good
Dayrates kept firming (into the $29-34K range) and contract durations lengthened again -- a clearer sign the market was recovering off its 2009 lows.
19 Jan 2010production update● Neutral
Dayrates ticked up slightly (into the $29-33K range) and a hurricane-repaired rig returned to service -- an early, tentative sign of the market bottoming.
16 Dec 2009production update● Neutral
Rates and stacking levels held steady at crisis lows as the Hercules 350 finished hurricane-related structural repairs.
17 Nov 2009production update● Neutral
One rig went in for precautionary inspection after Hurricane Ida; otherwise the fleet held steady at low, crisis-era dayrates with about a dozen rigs still cold-stacked.
28 Oct 2009production update● Neutral
Dayrates held around the same depressed $27-31K range with roughly a dozen rigs still cold-stacked, while liftboats kept shifting toward international work.
26 Oct 2009debt financing● NeutralMajor
Hercules completed the $300 million secured notes offering, finishing the string of equity and debt raises it needed to avoid tripping its credit-facility covenants in 2009 -- expensive financing, but the immediate default risk was addressed.
14 Oct 2009debt financing▼ BadMajor
Hercules agreed to sell $300 million of 10.50% senior secured notes due 2017, guaranteed by its subsidiaries, with proceeds earmarked to pay down its term loan.
8 Oct 2009capital raising announcement▼ BadMajor
Hercules closed out its stock offering with a small over-allotment (1.3 million more shares, ~$6.3 million) and priced its new $300 million notes at a steep 10.50% coupon -- expensive, high-yield-market pricing that reflects the market's view of its credit risk.
5 Oct 2009capital raising announcement▼ BadMajor
Hercules announced plans to privately place up to $300 million of senior secured notes due 2017, the next step in shoring up its balance sheet after the covenant-breach warning.
5 Oct 2009production update● Neutral
Chevron extended two rigs through mid-2010 at $27-29K, and Hercules began mobilizing several liftboats to West Africa (at $39-41K) to escape the still-crushed domestic market.