Seventy Seven Energy (SSE) Prelim. Q4 Revenue Tops Views

Seventy Seven Energy Inc. (NYSE: SSE) today reported preliminary estimated and unaudited financial and operational results for the 2015 full year and fourth quarter. Key information related to the 2015 full year and fourth quarter results is as follows:

• Full-year Total Revenues of $1.131 billion
• Full-year Adjusted EBITDA between $235.0 - $233.0 million
• Fourth quarter Total Revenues of $192.8 million, including $11.8 million in lump sum drilling contract termination fees
• Fourth quarter Adjusted EBITDA between $57.0 - $55.0 million
• Year-end cash balance of $130.6 million

(Street sees Q4 revenue of $181.6 million)

“Despite a very challenging market we are pleased with our fourth quarter execution,” Chief Executive Officer Jerry Winchester said. “We continue to diversify our customer base while tightly managing costs throughout our business. Our fourth quarter results reflect our commitment to this strategy.”

“Although we are anticipating continued market headwinds with little visibility into the plans of operators, our operational execution and quality asset base continue to bolster our reputation amongst our growing customer list.”

Selected Preliminary 2015 Segment Highlights

• Full-year Drilling Total Revenues of $436.4 million and Adjusted EBITDA between $185.0-$183.0 million
• Fourth quarter Drilling Total Revenues of $89.6 million, including $11.8 million in lump sum termination fees, and Adjusted EBITDA between $49.0-$47.0 million
• Full-year Hydraulic Fracturing Total Revenues of $575.5 million and Adjusted EBITDA between $61.0-$60.0 million
• Fourth quarter Hydraulic Fracturing Total Revenues of $91.9 million and Adjusted EBITDA between $8.2-$7.8 million

The Company is providing this preliminary estimated and unaudited information in advance of upcoming corporate presentations. The information is based on management's preliminary review of the Company’s results of operations for the 2015 fourth quarter and full year, and is subject to revision. Final adjustments and other material developments may arise between the date of this press release and the date the Company announces fourth quarter and audited full year 2015 results and files the Company's Annual Report on Form 10-K for the year ended December 31, 2015 with the U.S. Securities and Exchange Commission.

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