Disruptive Investor
Long/short equity, deep value, event-driven, macro

Seadrill Partners: Undervalued With Significant Growth Upside

Seadrill Partners (NYSE:SDLP), which is a limited liability company formed as a wholly owned subsidiary of Seadrill Limited (NYSE:SDRL), is an attractive buy with significant revenue and a dividend distribution bump up expected over the next few years. This investment note discusses the growth triggers and the valuations considering the growth potential.

Seadrill Partners is in the business of owning, acquiring and operating offshore drilling rigs. As of June 2013, the company had five operating rigs with an average remaining contract term of 3.8 years and a total contract backlog of $2.5 billion. The contract coverage comes from Chevron (NYSE:CVX), Total (NYSE:TOT), Exxon (NYSE:XOM) and BP (NYSE:BP). A...

Join Seeking Alpha PRO to read this archived article and 11,574 other archived articles
FREESA PRO MEMBERS
IDEA GENERATORXExclusive access to 10 PRO ideas every day
INVESTING IDEAS LIBRARYXExclusive access to PRO library of more than 15,000 ideas
SECTOR EXPERT NETWORKXExclusive access to all sector experts for direct consultation
PERFORMANCE TRACKINGXTrack performance of all PRO stock ideas
PROFESSIONAL TOOLSXProfessional Idea Filters to zero-in based on industry, market cap and more
"In just the first month of using PRO, I used it to generate two ideas which were actionable for me. As a result of these two positions, I have earned more than 20 times the annual subscription costs for PRO."Michael Yagemann, Greenbridge Capital
"I am pleasantly surprised with the scope of small and mid-cap coverage PRO offers. You can't find that any where else."Patrick Rice, Mainstay Capital Management
You may cancel at any time for any reason, and receive a prompt refund for membership on months paid and not used (max. 6 months). Details