HIGHLIGHTS from CC Check them out carefully folks. What not to like? TID is getting better and better fundamentally and moves to the right path with several positive short term catalysts ahead:
1) According to Dawson, there are still ongoing, material and non-public decisions being evaluated as part of their strategic review - beyond the M&P divesture and debt restructuring.
2) G&A reduced 25% going forward with closure of Houston and Paris offices and reductions and management changes in Colombia ~$5.0 to $5.5m quarterly, down from $7m+
3) Annual CapEx goes down from $25m to $16 to $17m with divesture of older AFRICAN rigs. Africa sale is also good from a working capital reduction requirement perspective as they consume a lot of capex to keep them operating versus the newer rigs in SA.
4) Refinancing debt needs to be done before mid December and all lenders are on board.
5) CYA receivable - $1 million received with a lump payment of $5.5 million to be received in January, with smaller installments after that for a total of $12 million.
In other words, the CYA receivable settlement will be over half collected by the end of January ($6.5 million). They already received a $1 and expecting $5.5 million by the end of January. The rest out over the next eight months.
6) Multiple parties in discussion for heli-rigs.
7) Total debt at end of Q4 should be $200m with CYA reducing by $7 million in Q1 plus any rig sale proceeds.
8) Heli-rigs either being sold of contracted in the month of December.
9) They want to have all of the restructure completed by year end so 2014 focus is solely on operations.
10) Colombia is 100% utilized despite the Centurion bankruptcy. They have three under contract for work for Ecopetrol excluding their other customers like PRE, PXT, PTA, GTE.
11) Some big work coming in Ecuador....40 rigs will be required almost right away.