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Seadrill (SDRL) is upgraded to Outperform from Neutral at Credit Suisse, which says the IPO of...

Seadrill (SDRL) is upgraded to Outperform from Neutral at Credit Suisse, which says the IPO of Seadrill Partners (SDLP) was transformational for SDRL as it provides a platform to deliver and/or further growth. Also, SDRL has incentive distribution rights that should increase in value by $3-$5/share as SDRL drops down assets into SDLP.
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Comments (2)
  • wigit5
    , contributor
    Comments (4218) | Send Message
     
    Does anyone have an article out explaining how SDRL is operating... I don't really understand the idea behind siphoning assets off to subsidiaries (?? or affiliates maybe is the right word?)

     

    Just trying to get a better idea of how the model works...
    16 Nov 2012, 12:26 PM Reply Like
  • saratogahawk
    , contributor
    Comments (2439) | Send Message
     
    wigit5, my best suggestion to you is to read all the SA articles on SDRL and to look at the Teekay and Ship Finance models as I think that JF knows them intimately and is using those models for the new SDRL. It probably makes more sense for financing and liability management since the Macondo event and with the ongoing crap in Brazil. No driller wants to have the entire corp at risk over such an incident.
    16 Nov 2012, 03:15 PM Reply Like
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