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C&J Energy Services (CJES) |
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WIKI ANALYSIS
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This company completed an initial public offering (IPO) of its stock in 2010. View articles that reference this company. Recent IPOs: Globe Specialty Metals • LogMeIn • Invesco Mortgage Capital • Medidata • Chemspec |
C&J Energy Services (NYSE:CJES) is a specialized well completion company in the oil and gas drilling industry. C&J Energy focuses on hydraulic fracturing and coiled tubing which are processes used to complete the drilling of a well. Hydraulic fracturing is done generally when a well is near the end of its life, but can also be done to stimulate an existing well. The process creates fractures in the rock beneath the surface and allows the well to be more productive. C&J focuses on particularly complex hydraulic fracturing jobs and are geographically focused in the Texas, Oklahoma, Louisiana region.[1]
Business Overview
The total revenue of C&J for the full year 2010 was $244M. This compares to the $67M in total revenue of 2009. The company reported a net income of $32M in 2010, while it reported a net loss of $2.4M in 2009.[2]
New Updates
The company's initial public offering of stock on the New York Stock Exchange occurred on July 28, 2011. The company offered 11.5M shares each for $29. This was above the initial price range of $25-$28. The deal raised a total of $334M. The lead underwriters were Goldman Sachs Group (GS), J P Morgan Chase (JPM), and Citigroup (C).[3]
Trends & Forces
Potential Environmental Regulation against Hydraulic Fracturing
The process of Hydraulic Fracturing, or hydrofracking, is relatively controversial due to the concerns surrounding the pollution of the water table. The technique consists of injecting pressurized water, sand, and chemicals into the well in order to create fractures in the rock. As a result, there is concern that such a process contaminates the water, both for drinking and for farming, with oil and chemicals. If the EPA were to regulate hydraulic fracturing, this would have a significant impact on C&J.[4][5]
- ↑ CJES 2011 S-1/A PROSPECTUS SUMMARY "Our Company" pg1
- ↑ CJES 2011 S-1/A PROSPECTUS SUMMARY "Selected Consolidated Financial Data" pg18
- ↑ Renaissance Capital - IPO Home "C&J Energy prices IPO at $29.00, above the range" 28 July 2011
- ↑ Trinidad Times "EPA gathers input on hydraulic fracturing" 16 July 2010
- ↑ CJES 2011 S-1/A PROSPECTUS SUMMARY "Risk Factors" pg 5
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