22 Jan 2013production update▲ Good
One rig locked in a rate of $101-103K for early 2014 -- among the highest domestic dayrates in the fleet's history -- with the whole domestic fleet essentially fully employed.
Announcements, explained
Each one in plain English, with the numbers worked through for a shareholder.
20 Dec 2012production update▲ Good
A new customer signed on at $94-96K, among the highest domestic dayrates yet, and a previously idle rig began reactivation -- the cycle now strong enough to justify bringing back stacked capacity.
28 Nov 2012production update▲ Good
Two Chevron rigs signed full-year contracts running through the end of 2013 at $64-66K -- a sign of a mature, confident cycle with customers now committing a full year out.
23 Oct 2012production update▲ Good
Domestic dayrates hit new highs (into the high $80s/low $90sK), even as a Malaysia rig joined the Bahrain rig in cold-stacked status -- pockets of idle international capacity persisting despite the strong domestic market.
18 Sept 2012production update▲ Good
Dayrates kept rising further (some rigs now above $80K) as the boom broadened across the fleet.
21 Aug 2012production update▲ Good
Domestic dayrates continued climbing (into the high $50s-$70sK) with the fleet almost fully employed on back-to-back short contracts.
18 July 2012production update▲ Good
A second rig began work for Saudi Aramco (843 days at $79-81K, alongside the first at 803 days/$83-85K) -- the Aramco relationship expanding to two rigs -- while domestic rates held strong.
20 June 2012production update▲ Good
The domestic fleet kept re-contracting at strong rates and the Cameroon (Perenco) contract renewed at a higher $89-91K, while a Malaysia rig sat warm-stacked awaiting work.
17 May 2012production update● Neutral
The rig damaged in Angola back in September 2011 (Hercules 185) was still in the shipyard being evaluated for leg damage, while the rest of the domestic fleet kept working at strong $57-73K rates.
19 Apr 2012production update▲ Good
Domestic dayrates reached new highs ($57-73K on several rigs), and a new Indonesian contract with Zaratex priced at $99-101K -- the recovery now pushing rates above pre-2008 levels on some rigs.
6 Apr 2012debt financing● NeutralMajor
Hercules used proceeds from its new $500 million notes to pay off and retire its entire 2007 credit facility (a $140 million revolver and roughly $434 million term loan), completing its refinancing with no penalties.
30 Mar 2012debt financing● NeutralMajor
Hercules sold $500 million of new notes -- $300 million secured at 7.125% and $200 million unsecured at 10.25% -- to help pay for the Ocean Columbia rig acquisition; the double-digit coupon on the unsecured tranche shows its borrowing costs were still junk-rated years after the 2009 crisis.
28 Mar 2012material agreement● NeutralMajor
Hercules sold 20 million shares (plus a 3 million-share over-allotment option) at $5.10 each to help fund its acquisition of the jackup rig Ocean Columbia -- still raising equity at 2009-crisis-era prices even as it funded a growth purchase.
20 Mar 2012capital raising announcement● NeutralMajor
Hercules announced plans to sell 20 million shares of stock (plus a 3 million-share over-allotment option) to help fund its pending acquisition of the drilling rig Ocean Columbia and pay down term-loan debt. (Corrected from production_update: the filing is a stock-offering press release, not a fleet status report.)
15 Mar 2012production update▲ Good
Hercules locked in years of international revenue visibility -- extending the Angola (Chevron/CABGOC) contract to 2014, the Congo (Perenco) contract, and a Pemex Mexico platform contract running all the way to September 2015.
23 Feb 2012production update▲ Good
The domestic fleet kept re-contracting at strong rates ($47-68K) and the new Saudi Aramco contract was confirmed running through late 2014.
19 Jan 2012production update▲ GoodMajor
Hercules landed a major long-term Saudi Aramco contract for one of its rigs -- 907 days at $79-81K, opening the world's largest drilling market to the company -- even as a liftboat (the Mako) was severely damaged in a fire.
23 Dec 2011capital raising announcement● Neutral
The bankruptcy court finished distributing the Hercules shares issued to fund the Seahawk acquisition to Seahawk's creditors -- about 5.3 million shares in October 2011 and a further 14.1 million approved for release in December, stock that is now free to trade and could pressure the market.
15 Dec 2011production update▲ Good
One barge rig landed a big rate jump to $104-106K and a Vietnam rig entered service -- the recovery accelerating into a genuinely strong market.
17 Nov 2011production update▲ Good
Domestic dayrates kept climbing (into the $37-49K range), though a Bahrain rig remained cold-stacked nearly a year after being idled.
26 Oct 2011production update▲ Good
Domestic dayrates held strong (into the $37-56K range), two years after the 2009 trough, though one Bahrain rig remained cold-stacked.
28 Sept 2011production update▲ Good
Rates climbed further still (up to $47-49K) and Hercules picked up a letter of intent for new work in Vietnam -- international expansion continuing alongside the domestic recovery.
21 Sept 2011drilling progress report▼ BadMajor
The jackup rig Hercules 185, working offshore Angola for Cabinda Gulf Oil (Chevron), was found to have a detached spud can during a routine inspection and will sit at zero dayrate for an estimated six months while it's assessed and repaired, an insured loss subject to a $3.5 million deductible.
25 Aug 2011production update▲ Good
Dayrates kept climbing (up to $44-46K on some rigs) and the new Congo contract with Perenco was active at $61-71K, though a Bahrain rig remained cold-stacked since late 2010.
28 July 2011production update▲ GoodMajor
The former Seahawk rigs found steady work with new customers, and Pemex awarded Hercules a four-year Mexico contract at $49-51K -- a significant long-term international win as the recovery broadened.
20 June 2011production update▲ Good
The fleet kept re-contracting at improving rates (into the $34-44K range) with new customers coming on.
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.