Why the U.S. Well Services Inc (USWS) stock surged in the after-markets on Wednesday?

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FWONA
FWONA

The U.S. Well Services Inc. (USWS) shares surged 10.00% in after-hours on Wednesday, October 6, 2021, and closed the daily trading at $2.64. However, in the regular trading session, USWS’s stock lost 7.34%. USWS shares have risen 161.52% over the last 12 months, and they have moved down 27.05% in the past week. Over the past three months, the stock has lost 39.32%, while over the past six months, it has declined 33.43%.

Let’s discuss its recent developments briefly.


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USWS business updates

On September 30, 2021, U.S. Well, Services (USWS) provided updates on its near-term business outlook and process towards full-electrification.

Reverse Share Split

USWS also began a reverse share split on September 30, 2021. Holders of U.S. Well Services’ Class A Common stock will receive 1 post-split share for every 3.5 pre-split shares. The Company’s common stock will continue to be traded on the NASDAQ Capital Market under the symbol USWS and it began trading on a split-adjusted basis on Friday, October 1, 2021, under a new CUSIP number, 91274U 200.

Update on Strategic Transformation

The U.S. Well, Services has completed the sale of over 30% of its conventional pressure pumping portfolio along with other non-core ancillary equipment, since announcing its intention to exit the diesel frac services market. Due to this, the company’s senior secured term loan has been reduced by $44.9 million, from $246.3 million.

USWS Update on fleet activity

In August 2021, the company exit from the diesel frac services market by ceasing its last active conventional fleet operations. The Company expects to grow to 9 electric fleets by the end of 2022 and is currently operating five all-electric fleets.

USWS recent financial results

On August 11, 2021, U.S. Well, Services, Inc. (USWS) announced its second-quarter 2021 financial results.

Q2 2021 financial highlights

  • USWS reported total revenue of 8 million in Q2 2021 compared to $76.3 million in the first quarter of 2021 and $39.84 million in Q2 2020.
  • The cost of sales was $59.3 million in Q2 2021compared to$62.6 million in Q1 2021 and $29.0 million in Q2 2020.
  • It suffered a net loss of $17.7 million in the second quarter of 2021 compared to $20.6 million in the first quarter of 2021  and a net loss of $19.6 million in Q2 2020.
  • Adjusted EBITDA was $36.9 million in Q2 2021 compared to $11.5 million in Q1 2021 and adjusted to $8.5 million in Q2 2020.
  • The company ended the quarter with total liquidity of $70.7 million, comprising $58.1 million of cash on the Company’s balance sheet and $12.6 million of availability under the Company’s asset-backed revolving credit facility.

Conclusion

USWS stock had no latest news or development, which could justify its mixed performance on Wednesday. Let’s see how it performs in the coming trading sessions.

 

 

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