VTG (Vantage Drilling Company)

Question

Anyone ever heard of this company or have any info on them? For those who are interested in the UDW drilling segment . . . this could be a good play.

It seems this stock got beat down in the year when it was expected the financing would fall through for 2 RIGS . . . however, now they recenly signed 2 long term contracts with Petrobas starting in 2011 and 2012 . . . should start being cash flow positive this year.

Backlog of 3 billion in revenue for a stock trading at $1.70 with approximately 113 million shares outstanding. Possible EBITDA of 350 million when rigs come online in coming years.

I think for those who are looking for something long term this could potentially be a steal at this price. Only problem I see is a lack of info on the company. Volume is mind boggling as well.

Here is a press release.

Wanted to know peoples thoughts (if any)

https://finance.yahoo.com/news/Vantage-Drilling-Company-iw-14510834.html

https://www.vtg-energyservices.com/cmtdoc/VTG_DnB_NOR_Presentation_04-Mar-09.pdf

VirginiaHoldem2 · Answer

Anyone ever heard of this company or have any info on them? For those who are interested in the UDW drilling segment . . . this could be a good play.

It seems this stock got beat down in the year when it was expected the financing would fall through for 2 RIGS . . . however, now they recenly signed 2 long term contracts with Petrobas starting in 2011 and 2012 . . . should start being cash flow positive this year.

Backlog of 3 billion in revenue for a stock trading at $1.70 with approximately 113 million shares outstanding. Possible EBITDA of 350 million when rigs come online in coming years.

I think for those who are looking for something long term this could potentially be a steal at this price. Only problem I see is a lack of info on the company. Volume is mind boggling as well.

Here is a press release.

Wanted to know peoples thoughts (if any)

https://finance.yahoo.com/news/Vantage-Drilling-Company-iw-14510834.html

https://www.vtg-energyservices.com/cmtdoc/VTG_DnB_NOR_Presentation_04-Mar-09.pdf

wallstreetcappers · Answer

VH2,It looks like they only own 55% of that first one?Also this looks like a recent shell company, havent been around long if I am reading this right-linkNotice the Restructure Agreement area..they will keep funding by debt and share issuance, tons and tons of warrants are going to hit the market if the stock goes very high.Also look at Results of Operations..I have no idea of their cost structure at all, nor do I know how much debt they will have by the time these drillships start operating. Then look at the Liquidity section, they have 16M in cash and like a billion in debt, which is being supported by a syndicate?This is a 200M market cap stock with some interesting drillships under construction (they seem the same as DRYS drillships) but I dont know how much they are going to own and earn of that contract, nor how they are going to finance it, nor how they are going to pay the massive debt or the terms.

VirginiaHoldem2 · Answer

That is an interesting observation . . . and I agree with most points. Like I said seems info is very scarce.

I am not too worried about the warrants because if they reach that level the shares I bought in 1.40 to 1.50 range will be in the money easily by then.

I am more concerned about servicing the debt, etc.

You are right . . . this is a start up company. Most financed by debt and shares.

I'm going to continue to hold my shares for now and keep my eyes out. I think once the rigs come on this will be in the 4 and 5 range. Like i said long term.

VTG (Vantage Drilling Company)

Hot Forum Topics