SPN's Leveraged Balance Sheet Trumps The Growth Factors
Superior Energy Services' (SPN) offerings include drilling products and services, onshore completion and workover services, production services, and technical solutions. The biggest concern for the company is its leveraged balance sheet and a low cash flow level. Until it deleverages its balance sheet, I will not recommend buying into the stock because the risks may be too high at the current state. In the medium-to-long term, the huge debt repayment burden will increase its financial risks considerably, unless it manages to refinance the debt, increase