C&J Energy Services Ltd. (OTCMKTS:CJESQ) filed a Form 8-K, along with its operational update for the 2Q2016. The company noted that it was facing a series of challenging situations and any update issued on its website is valid for the period specified only. In its operational update, CJESQ updated that its current strategy was to retain its position in active and profitable land basins, while divesting small and non-core services to reduce its operational costs and improve liquidity.
The company stated that it was working towards leveraging its full suite of core services and improves its market share. Moreover, CJESQ aims to do this while managing its equipment in such a way that it increases profitability and utilization. In the update, the management also noted that it plans to move through the restructuring process as quickly as possible, so it can make use of its liquidity to better grow its core business activities. It was also noted that once the market recover, a reduced cost structure would be very beneficial for the company.
Regarding its cost control and efficiency initiatives, C&J Energy revealed that it was actively focusing on scaling its business. This was being done through cost control, closing of unprofitable initiatives and reducing the overall headcount of the company. So far, the company claims that it has saved approximately $180 million. The filing was made on September 7, 2016, resulting in a gradual increase in the stock price. However, on September 20, 2016, the stock jumped by $0.15 per share.
CJESQ announced on July 20 that it would be filing for voluntary reorganization, under Chapter 11. This was a result of a previously signed restructuring and support agreement, by the company and its lenders. Under the reorganization agreement, CJESQ aimed to reduce its debt, by $1.4 billion. The restructuring process would take an additional 70-130 days, after which the company would resume operations as normal.
C&J Energy Services Ltd. (OTCMKTS:CJESQ) added $0.022 to its share value, during the September 21 trading session, to close at $0.54 per share. The stock had a trade volume of 1.51 million.