SPN’s Leveraged Balance Sheet Keeps The Shackles On
Superior Energy Services’ (SPN) offerings include drilling products and services, onshore completion and workover services, production services, and technical solutions. I do not think the company can produce positive returns in the short-term. In the medium-to-long-term, until it deleverages its balance sheet, I will not recommend buying into the stock.
The pricing pressure and lower pressure pumping utilization in North America has forced Superior Energy to reduce fleet size and divest the drilling rigs service line in Q2. To boost sales and margin, it has