Seadrill's (SDRL) $4B commitment for the use of three offshore rigs in the Gulf of Mexico should...

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wigit5 Comments (2578)
 
Hmm thats a lower per rig per day price then the last deal isn't it?
27 Jul 2012, 03:46 PM Reply Like

Power Hedge Comments (780)
 
Yeah, it is. The Gulf of Mexico is usually cheaper than the North Sea/West Africa/Brazil, though. It's not a low rate for the region. It's higher than what PACD, DO, and ESV have been getting recently (both in the Gulf and in more expensive areas).
27 Jul 2012, 03:52 PM Reply Like

Herr Hansa Comments (2951)
 
Yes. We are reaching a point of very high rig utilization rates. That doesn't leave too much room for expansion without more investment. The additional backlog is a good sign, but those revenues don't begin until over a year from now. Once a slight dose of reality sets in, people read the details, and then Mario Draghi fails on his big promise at the ECB, we will see a dip in share prices. I would use macro weakness and a dip to buy more shares, though at the moment I am looking to diversify amongst some drilling companies, where I was previously heavy into shares of SDRL
27 Jul 2012, 03:53 PM Reply Like

Power Hedge Comments (780)
 
Good point. The start up of operations are scheduled for September and December of next year.

I'm still fond of SeaDrill but I've started diversifying as well. I'm buying Sevan Drilling in Oslo and considering NE... I like some of NE's new contracts and their growth potential.
27 Jul 2012, 03:56 PM Reply Like

Herr Hansa Comments (2951)
 
Noble Drilling (NE) is the other company I have been looking into. My other diversification is once again in offshore construction through Cameron (CAM), which I got very close to the low, and McDermott (MDR). All these are multi-year long investments.
27 Jul 2012, 04:40 PM Reply Like

sethmcs Comments (2204)
 
Fiddle sticks I wanted SDRL @ $30.85. Made chump change on selling puts. Need Merkel and the European clown show to take the market down but they are on vacation. Upsetting!
27 Jul 2012, 03:46 PM Reply Like

wigit5 Comments (2578)
 
I just took a small bite at 39.71, I think the future outlook is good. Will increase over the course of the year if it dips back to it's lows.
27 Jul 2012, 03:47 PM Reply Like

Herr Hansa Comments (2951)
 
Mario Draghi of the ECB has promised many ways to prop up the Euro. The next policy meeting is next week. Even then, he has until around 20 August 2012 to get things sorted and approved. Leading into that date we can expect more trouble from Greece, as they run out of funds to continue operations. One somewhat low odds guess of mine, but still a possibility, is that Greece may move to nationalize one or more banks, thus giving them some funds for operations.
27 Jul 2012, 03:55 PM Reply Like

surfgeezer Comments (4912)
 
I thought the most important thing was the much more definite talk of MLP status financing.
27 Jul 2012, 11:36 PM Reply Like

dronet01 Comment (1)
 
Dividends mean are important to me. I'll stick with sdrl and add with a dip.
28 Jul 2012, 06:56 AM Reply Like

KenNagle Comments (265)
 
While oil prices and the European clown show will continue to affect Seadrill PPS, I don't see it falling to sub $34. Dividend has been increasing and more investors have been buying. Plus much more electronic media exposure. Even Cramer is now getting calls on Seadrill. Alhough I think he does not understand the stock. This stock is worth $45 right now and should go to $50 IMHO.
29 Jul 2012, 11:20 PM Reply Like

Clayton Rulli Comments (1540)
 
SDRL dividend has been excellent, not to mention its special dividends as well.
18 Aug 2012, 07:28 PM Reply Like