Entering text into the input field will update the search result below

Seadrill Partners +8% despite announcing 55% distribution cut

Dec. 18, 2015 10:42 AM ETSeadrill Partners LLC (SDLPF) StockSDRL, SDLPFBy: Carl Surran, SA News Editor8 Comments
  • Seadrill Partners (SDLP +8%) is sharply higher despite reducing its quarterly distribution to $0.25/unit, down from the current $0.5675, saying the move will provide significant flexibility to manage its medium term obligations and reduce leverage.
  • SDLP expects the cut to increase liquidity by more than $250M/year, and says it will continue to set aside cash reserves for ~$200M/year in maintenance and replacement capex.
  • SDLP is downgraded to Neutral from Buy at Seaport Global, saying continued pressure on commodities and reduced spending plans of its customers have reduced the company's ability to blend and extend contracts for its rigs as contracts start rolling off in 2017.
  • Seadrill Corp. (SDRL -1.1%) owns 35% of SDLP.

Recommended For You

Related Stocks

SymbolLast Price% Chg
SDLPF--
Seadrill Partners LLC