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Fess up time must be happening. Stock down nearly 10% (to $1.62 in one day and Dow up nearly 400 Points) Down from $2.25 in last 2 weeks.
Dow Stock average up over 320 points today. NR down .10 cents and under $2 with oil over $40. Reality starting to set in with earnings ( lack of) due in 4 weeks.
I always say, when in doubt, look at the Company's own 10Q. OK - 1st Q 2020 Drilling Fluids Div- MINUS 1.7% Segment Operating Margin and a LOSS of $2.2M . This is Just the Drillings Fluid Div Alone BEFORE Corporate Expense of $6-7M per Quarter and they still had a Negative Operating Margin. Don't like that number –look at 4th Q 2019- Drilling Fluids Div. MINUS 13.5% Segment Operating Margin with $18.1 M Operating Loss. The Analyst's that cover nr are Predicting a $16-18M NET LOSS for the Entire company for the 2nd Q of 2020 which will be released in apprx 4 weeks. FYI Mats Div had a 9.6% Operating Income Margin in 1st Q 2020 with a Operating Income of $3.1 AND a 4th Q 2019 28.6% Operating Income Margin of 26.6% with a Operating Income of $14.6M. Although Mats Div Income is dropping, they are still on the Plus (Profitable) Side , so far. NOT SO for Drlg Fluids Div.. AND NO NR Enviromental to sell this time to bail them out. I Repeat- Fluids Div has had 2 straight Quarters of Negative Operating Income. And i get the part of about Hard Work. BUT hard Work HAS NOTHING to do with Selling the Product VS GIVING IT AWAY BELOW COST to capture a Sale which is what the financials indicate combined with Excessive Overhead and possible Operating costs. Even go back to March 2019 and Fluids Div ONLY had a 2.4% Operating Margin.
Having 10 rigs and making DECENT margins on 10 rigs are far different matters. As we all know, NP Fluids is bleeding badly in NA, or did you not listen to the last CC? Straight from King Paulie’s mouth...
10 in NLa last week not counting conventional operators. Barely visible is just not the description to use in reference to an area Working hard, holding their market share throughout this down turn. It’s not always doom and gloom everywhere .
So how many rigs out of 21 in N La? E TX was not discussed- since you bring up accuracy
N La Leads the market share for East Texas and N La and has done so for a good while . And has remained profitable through out. If you are going comment be be accurate.
10 offshore rigs in Entire GOM– 0 Inland barge rigs — 0 Land rigs in So. La. Down to only 21 working rigs in N La and nr participation rate is barely visible. Okla Total rig count– 10 rigs running- Down from 100 rigs a year ago. 2nd Q numbers out in 4 weeks. Oil Price struggling to hold $40 NG around $1.70-1.75 or so NY and Calif looking to close down again.