That is not a good estimate though. Estimates were 11 cents for months, then all of a sudden the estimates doubled last week while the stock lost 20% of it's value.
Especially for a stock that keeps hitting historical new lows every day. The next question is how to get the price above $1. My guess is that PGN announces a small share buyback (like $50 million approved for it). $50 million is nothing to PGN, but a buyback of that size would send the shares soaring!
Went from 11 cents all the way up to 21 cents! I know it is a penny away from a true double, but that is a remarkable increase in EPS estimates!!!
Remember, drilling contracts for PGN are still going to be based in dollars, so the exchange rate doesn't matter so much because the drilling contracts are also expensive in the same regard.
That is a real nice jump with only one analyst to add new numbers. Now at 73 cents estimated for the year. I think somebody got some information about PGN rigs working the new major shallow water discovery in Mexico! If this fleet status report on Monday contains any new contracts, this stock could become a rocket with the 21+ days of shorts trying to cover in one day.
Yes, they still have about $15 million authorized to repurchase debt with. They also don't announce new authorizations until they have already purchased a good amount of debt.
They def. should have released that information sooner. That makes this a fantastic financing deal and a great deal to actually buy Prospector in the first place now! It also means they won't book any losses on the sale of the rigs since they would be offset by the gain booked on the obligation to repurchase the rigs for pennies of their value.
yes you did. 161 MILLION is revenue of the 147 THOUSAND dayrate differnce for the remaining days of current contract.
They paid 530 million for the 2 rigs. They got 6 months of free earnings/cashflow out of them already, then over the leaseback and the current contracts, they will make (minus whatever they pay for crew)
161 million on prospector 5 (218,000 dayrate minus the 71000 leaserate for current contract)
73 million on prospector 1
plus 300 million cash and they come out with just over what they paid for the rigs (minus crew costs), then also have really really really cheap leasing options on the rigs for a long time (41,000/day).
So, basically they pay a few million total for the ability to lease the rigs for years at 41,000/day.
In fact, the rest of the revolver and/or the tons of cash on hand that keeps flowing in, better be used to extinguish all long term debt possible to buy at a discount. If they keep it as liquidity, they need a new CEO!!!! If they use it like they should, he may be considered a genius in a few years!