Emerge Energy Services LP (NYSE:EMES) announced that it has entered into the second amendment (the “Amendment”) to the revolving credit and security agreement, dated as of July 27, 2014 (as amended, the “Credit Agreement”), among the Partnership, the subsidiary borrowers, PNC Bank, National Association, as administrative agent, and the other lenders party thereto.
The Amendment temporarily suspends certain financial ratio covenants under the Credit Agreement, restricts the Partnership from entering into certain transactions and requires that its operating results meet certain performance thresholds during the suspension period. The executed Amendment and a description thereof are included in the Partnership’s Quarterly Report on Form 10-Q for the three months ended September 30, 2015 (the “Quarterly Report”), which has been filed today with the Securities and Exchange Commission (the “SEC”).
The Partnership also announced today that on November 17, 2015, it received a notice from the New York Stock Exchange (the “NYSE”) advising that the procedures in Section 802.01E of the Listed Company Manual are applicable to the Partnership as a result of its failure to file with the SEC the Quarterly Report by November 9, 2015, the date on which it was required to have been filed under Section 13 of the Securities Exchange Act of 1934. The NYSE informed the Partnership that, under the NYSE’s rules, the Partnership had six months from November 9, 2015 to file the Quarterly Report with the SEC in order to cure the noncompliance with the NYSE’s requirement to timely file all annual and quarterly reports.
As previously disclosed by the Partnership in its Form 12b-25 filed with the SEC, the Partnership was unable to timely file the Quarterly Report because of the significant amount of management time required in negotiating the Amendment, the terms of which were expected to materially affect the financial statements and disclosures presented in the Quarterly Report. Having since entered into the Amendment and filed the Quarterly Report, the Partnership believes it is now in compliance with the NYSE’s listing standards. (Original Source)
Shares of Emerge Energy Services closed today at $5.71, up $0.37 or 6.93%. EMES has a 1-year high of $86.58 and a 1-year low of $3.78. The stock’s 50-day moving average is $6.36 and its 200-day moving average is $21.21.
On the ratings front, Emerge Energy has been the subject of a number of recent research reports. In a report issued on November 5, Stifel Nicolaus analyst Selman Akyol reiterated a Sell rating on EMES, with a price target of $3, which represents a potential downside of 42.6% from where the stock is currently trading. Separately, on October 27, Robert W. Baird’s Ethan Bellamy maintained a Sell rating on the stock .
According to TipRanks.com, which ranks over 7,500 financial analysts and bloggers to gauge the performance of their past recommendations, Selman Akyol and Ethan Bellamy have a total average return of -0.2% and 5.8% respectively. Akyol has a success rate of 46.4% and is ranked #2689 out of 3857 analysts, while Bellamy has a success rate of 62.5% and is ranked #921.
Overall, 2 research analysts have rated the stock with a Sell rating, 2 research analysts have assigned a Hold rating and one research analyst has given a a Buy rating to the stock. When considering if perhaps the stock is under or overvalued, the average price target is $19.50 which is 272.8% above where the stock opened today.
Emerge Energy Services LP is engaged in the ownership, operation, and acquisition and development of a energy service assets. Its business is segmented into two – Sand segment and Fuel segment.