Power Hedge
Macro, energy, alternative energy, contrarian

Seadrill Partners' Acquisition Of West Auriga To Be Accretive To DCF Per Unit

On March 26, 2014, offshore drilling contractor Seadrill Partners LLC (NYSE:SDLP) announced that it has completed a deal to acquire the West Auriga drilling rig from parent company Seadrill (NYSE:SDRL). This deal was first announced on March 11, 2014 and is a little bit more complex than some of the other dropdowns that the partnership has engaged in since its formation. The partnership's management believes that the acquisition of this rig will be accretive to the partnership's distributable cash flow per unit and so has recommended that the partnership increase its per unit distributions due to its acquisition. Should the Board of Directors agree, this would represent yet another increase to the partnership's distributions that its...

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