Rowan: Push Into Ultra-Deepwater Could Bring Profits To Investors [View article]
PACD is pretty well positioned for a takeover by any of the majors. I think that Transocean would be the most likely to try it... after all, PACD has its roots in a joint venture with RIG.
Seadrill: An Analysis Of The Company's Leverage Management Strategy [View article]
I could probably do a full article on this, but two of the semisubs and one drillship are leased under finance leases. Seadrill effectively sold West Polaris, West Taurus, and West Hercules to Ship Finance and then leased them back. The company has repurchase options on these rigs dated from September 2012 to November 2023 dependent on rig. The repurchase cost varies from $580 million to $135 million dependent on time and rig.
The barebone charter rates here are adjustable based on LIBOR. For West Polaris, it's a 2.85% rate. It's 4.25% for the other two rigs. The long-term debt is a bit strange because of the way this is structured, but it's basically $360 million for West Polaris and nothing for the other two rigs. Of course, that's the debt of the two joint venture-like entities.
At least some of the bank debt does have balloon payments due at maturity, but I don't see anything specifically referencing the provisions you mention (although it's possible that the company isn't disclosing that). With that said, $2.426 billion worth of debt matures this year so it is likely that Seadrill will just roll this all over into a new loan.
Seadrill: An Analysis Of The Company's Leverage Management Strategy [View article]
You're correct in that the share price itself does tend to correlate with oil prices. This tends to make the shares a much better value when oil prices fall.
Seadrill Continues To Deliver On Growth Promise [View article]
I apologize if I sounded bearish. I am actually a bull myself and the recent stock price fall has led to me beginning to purchase more shares of the company. I am cautious about the company's earnings over the next few quarters due to the sale of the tender rigs and the loss of the cash flows from those assets, but overall, I also see great things for this company going forward.
Seadrill Continues To Deliver On Growth Promise [View article]
I do wish I would have more information on this so I could analyze it better. Management has said that they intend to use the money from the tender rig sale to invest heavily in ultra-deepwater and jackup rigs through either newbuilds or acquisitions.
An acquisition would be better to my mind since the company would get the rigs right away instead of waiting the 2+ years to construct an ultra-deepwater rig.
Personally, I think that Seadrill should flat out take over Sevan Drilling. It already owns 1/3 of the company and Sevan has a good fleet of four ultra-deepwater rigs.
Seadrill Continues To Deliver On Growth Promise [View article]
I tried to run the numbers a couple times (I posted the results here on SA). My conclusion was that the company won't have sufficient cash flow to fund the dividend fully until the new rigs come online. I'm unsure where the money will be coming from but what will probably happen is that SDRL will use some of the cash from the sale of the tender rigs to pay its dividend until the new rigs come online later this year.
A Comparison Of The Debt Levels Of Offshore Drilling Companies [View article]
Honestly, no, I'm not certain. I actually pointed out myself that that number seems a little bit low. The problem is that I couldn't find the information on the exact rate anywhere in the the annual report so I calculated the rate by taking the actual amount that the company paid in interest on the debt and calculated the rate using that number.
A lot of it is floating rate, so that explains the low interest rate.
The company's interest rate is LIBOR or NIBOR plus a fairly low margin.
Pinecrest Energy Is Incredibly Undervalued [View article]
You're correct, it should be $3.7 million. I apologize for not catching that during proofreading. No oil well costs billions of dollars to drill. I corrected the article a while ago, but I wanted to apologize as well. Thanks for pointing this out.
Suncor Energy Cancels Voyageur Upgrader: Growth Prospects Decline But Shareholders May Come Out Ahead [View article]
True. The company has not announced any cancellation for it, though. Mr. Williams said that they've been able to add significant value to the mining projects, including Fort Hills:
Rowan: Push Into Ultra-Deepwater Could Bring Profits To Investors [View article]
Seadrill: An Analysis Of The Company's Leverage Management Strategy [View article]
The barebone charter rates here are adjustable based on LIBOR. For West Polaris, it's a 2.85% rate. It's 4.25% for the other two rigs. The long-term debt is a bit strange because of the way this is structured, but it's basically $360 million for West Polaris and nothing for the other two rigs. Of course, that's the debt of the two joint venture-like entities.
At least some of the bank debt does have balloon payments due at maturity, but I don't see anything specifically referencing the provisions you mention (although it's possible that the company isn't disclosing that). With that said, $2.426 billion worth of debt matures this year so it is likely that Seadrill will just roll this all over into a new loan.
Does that help?
Seadrill: An Analysis Of The Company's Leverage Management Strategy [View article]
Seadrill: An Analysis Of The Company's Leverage Management Strategy [View article]
Seadrill: An Analysis Of The Company's Leverage Management Strategy [View article]
There is some indirect ties... for example, if oil prices fall and stay too low then that reduces demand for offshore drilling.
TeliaSonera Is Still A Good Dividend Investment [View article]
Interactive Brokers also can get you the shares.
Probably other brokers can as well, but those are the two that I know for sure offer the ability to do it.
TeliaSonera Is Still A Good Dividend Investment [View article]
Seadrill Continues To Deliver On Growth Promise [View article]
Seadrill Continues To Deliver On Growth Promise [View article]
An acquisition would be better to my mind since the company would get the rigs right away instead of waiting the 2+ years to construct an ultra-deepwater rig.
Personally, I think that Seadrill should flat out take over Sevan Drilling. It already owns 1/3 of the company and Sevan has a good fleet of four ultra-deepwater rigs.
Seadrill Continues To Deliver On Growth Promise [View article]
Seadrill Continues To Deliver On Growth Promise [View article]
A Comparison Of The Debt Levels Of Offshore Drilling Companies [View article]
A lot of it is floating rate, so that explains the low interest rate.
The company's interest rate is LIBOR or NIBOR plus a fairly low margin.
Pinecrest Energy Is Incredibly Undervalued [View article]
Pinecrest Energy Is Incredibly Undervalued [View article]
Suncor Energy Cancels Voyageur Upgrader: Growth Prospects Decline But Shareholders May Come Out Ahead [View article]
http://bit.ly/16s5zJG
The project has been delayed for a year, until 2017, but Suncor still seems optimistic on it.