The New York Stock Exchange (NYSE) began delisting protocols for global completions company Superior Energy Services Inc. last week, a determination the Houston-based oilfield services (OFS) operator plans to appeal.
Superior “believes the determination to commence delisting proceedings is unwarranted,” management stated. The OFS operator said in mid-August it intended “to implement a number of options, including a reverse stock split, to cure the low price condition. The company will appeal the NYSE’s decision.”
NYSE’s notification to the company that it had begun delisting procedures and would suspend trading of Superior’s common stock cited “abnormally low” prices. NYSE requires that the average closing price of a listed company's common stock average at least $1/share over 30 consecutive trading days.
Superior began over-the-counter trading on Sept. 27 under the symbol “SPNV,” a transition that it said would not impact its business. The share price on its final day trading on NYSE finished Sept. 26 at 15.01 cents/share, versus $3.45/share a year ago.
Superior CEO David Dunlap joined the voices of all U.S. OFS operators, including the No. 1 and 2 operators Schlumberger Ltd. and Halliburton Co., respectively, in 2Q2019 earnings reports in warning of challenges ahead for the sector.
“With respect to our market outlook, we are approaching the U.S. land market as if it is fully recovered and have no expectations for increased activity levels in the near future,” Dunlap said in July. “More specifically, hydraulic fracturing continues to face significant challenges.”
In Superior’s U.S. land segment, 2Q2019 revenue fell by 30% year/year and was off by 14% sequentially to $263 million, all related to stacking equipment in the Permian Basin.
Superior exited the second quarter running six operational fleets, down from nine in the first quarter.