NEW YORK (TheStreet) -- Shares of Ocean Rig  (ORIG were down 54.63% to 98 cents on heavy trading volume mid-Friday morning after the oil services company disclosed that it continues to explore reorganization options that could include a bankruptcy. 

"Oil companies continue to reduce their offshore budgets and as more floaters come off contract in the next six months, an already grossly oversupplied market is expected to worsen," CEO George Economou said in a statement.

He added that a recovery might not occur for several years.

After yesterday's market close, Ocean Rig announced 2016 second-quarter financial results that beat analysts' projections.

Earnings of $1.83 per diluted share topped analysts' estimates of 72 cents per share. Revenue increased by $19.4 million to  $452.6 million and beat expectations of $376.5 million. 

About 8.13 million shares of Ocean Rig have been traded so far today vs. its average trading volume of roughly 2.18 million shares per day. 

Separately, TheStreet Ratings team rates the stock as a "hold" with a ratings score of C-.

Ocean Rig's strengths such as its revenue growth, reasonable valuation levels and expanding profit margins. However, as a counter to these strengths, we also find weaknesses including a generally disappointing performance in the stock itself, generally higher debt management risk and disappointing return on equity.

You can view the full analysis from the report here: ORIG

TheStreet Ratings objectively rated this stock according to its "risk-adjusted" total return prospect over a 12-month investment horizon. Not based on the news in any given day, the rating may differ from Jim Cramer's view or that of this article's author.