Seadrill: When Is The Next Upcycle Coming?
Richard Zeits • 92 Comments
Richard Zeits • 92 Comments
Seadrill At Imminent Risk Of Bankruptcy... Really?
Power Hedge • 98 Comments
Power Hedge • 98 Comments
Wed, May 18, 5:38 PM
Wed, May 18, 8:24 AM
- Seadrill (NYSE:SDRL) +3.7% premarket after securing a debt-for-equity exchange agreement with creditors amid its ongoing financial restructuring.
- SDRL plans to issue ~8.18M new common shares in exchange for $55M in principal amount of senior notes due 2017.
- Now read Seadrill: Here comes the first dilution and Seadrill agrees to a debt for equity exchange - what shareholders will have to expect
Mon, May 16, 9:16 AM
- Seadrill Partners (SDRL, SDLP) says Exxon Mobil (NYSE:XOM) cancelled a contract for its West Capella drillship, one of its most lucrative drillship charters at a $627.5K dayrate.
- However, SDLP will receive a ~$125M payment plus other direct costs incurred as a result of the early termination.
- The West Capella had been working in Nigeria in the Usan field but now will be marketed for new work, SDLP says.
Thu, May 12, 9:19 AM
Fri, May 6, 6:45 PM
- Atwood Oceanics (NYSE:ATW) soared by fully a third in today's trade following a stellar Q1 earnings report driven by a combination of cost cutting and debt repurchases.
- ATW says Q1 drilling costs fell across all three of its asset classes, with costs in ultra-deepwater, deepwater and jackup fleets down by a respective 20.6%, 40.6% and 36.7% Y/Y.
- ATW also repurchased $13.4M in principal of its senior notes for $5.1M to recognize an $8.4M gain, which boosted Q1 EPS by $0.13; ATW says repurchases continued in April, taking out another $140.7M in principal for $94M.
- But Schaeffer's Research notes that some of today's rally could be the result of short-covering, as 43% of ATW's float is sold short.
- Other offshore drilling contractors, which also have been reporting better than expected earnings, finished with strong gains: RIG +6.2%, PACD +5.3%, DO +4.7%, ESV +4.7%, RDC +4.4%, NE +3.9%, but SDRL -3.4%.
Thu, May 5, 9:12 AM
- Gainers: SYNC +143%. LGCY +31%. AAWW +27%. EPE +21%. FCEL +19%. WTW +15%. DNR +14%. ZNGA +14%. CHK +13%. BCEI +12%. UNXL +12%. ARRS +10%. CRC +10%. CLMT +9%. ORIG +9%. QRVO +8%. GSV +8%. HMY +8%. VNR +7%. MEET +7%. SDRL 7%. CLR 6%. SGYP 6%. OAS 5%. REGN 5%. BABA 5%. AUY 5%.
- Losers: PTX -37%. FRSH -27%. SQNM -19%. FIT -13%. EBIO -11%. LB -10%. WFT -9%. SEAS -8%. ABC -8%. CTL -5%.
Tue, May 3, 9:15 AM
Mon, May 2, 1:07 PM
- Seadrill (SDRL -5.6%) is surrendering much of the gains earned Friday following news that it had reached agreement with its banking group to extend its three nearest maturing borrowing facilities of $2.85B and amend certain covenants across its secured credit facilities.
- In what SDRL called the first phase of a broader plan to refinance and recapitalize its business, the company extended two credit facilities maturing this year and another maturing in 2017 for its North Atlantic Drilling (NYSE:NADL) unit.
- While SDRL is “kicking the can down the road,” Friday's news is positive since the agreement was "required in order to save the company,” which still has a ~$2.5B funding requirement through 2018, says Nordea Bank oil services analyst Janne Kvernland.
- The deal came a few days after SDRL sold its remaining stake in SapuraKencana Petroleum for ~$195M, which shows the company is working actively on improving its balance sheet, Kvernland says.
Fri, Apr. 29, 9:12 AM
- Gainers: PRGN +75%. GNW +16%. P +13%. AMZN +12%. SDRL +11%. EXPE +11%. MNST +11%. ROVI +10%. SNMX +9%. LNKD +7%. CRC +7%. DNR+7%. DRYS +7%. TIVO +6%. LGCY +6%. SHPG +5%. GPL +5%.
- Losers: BIOC -22%. GLNG -17%. EPAY -17%. MOH -15%. SRCL -15%. IMGN -14%. SYNA -11%. AKS -8%. HCLP -8%. ALR -6%. GILD -6%. RXDX -6%.
Mon, Apr. 18, 9:20 AM
Thu, Apr. 14, 3:30 PM
- The Obama administration announces new oil well control rules aimed at preventing the kind of blowout that happened in the 2010 Gulf of Mexico oil spill.
- The regulations announced by the Interior Department tighten requirements for blowout preventers, well design, well control casing, cementing and sub-sea containment, and call for real-time monitoring, third-party reviews of equipment, regular inspections and safe drilling margin requirements.
- The effects will be particularly acute for the Gulf’s top crude oil and gas producers, Royal Dutch Shell (RDS.A +1.1%), BP (BP -1.6%), Chevron (CVX +0.1%) and Exxon Mobil (XOM +0.4%); XOM says the new rules will cost $25B over 10 years and render many offshore discoveries worthless.
- Offshore drilling stocks are broadly lower on the news: RIG -6.1%, DO -1.4%, ESV -5.1%, RDC -7.3%, NE -5.4%, ATW -9%, SDRL -8.9%, SDLP -4%.
- ETFs: XLE, VDE, ERX, OIH, XOP, FCG, ERY, GASL, DIG, DUG, BGR, XES, IYE, IEO, FENY, IEZ, PXE, FIF, PXJ, RYE, NDP, GUSH, DRIP, DDG, FXN
Thu, Apr. 14, 9:25 AM
Tue, Apr. 12, 12:45 PM
Wed, Mar. 30, 7:58 AM
- Seadrill (NYSE:SDRL) has hired Houlihan Lokey and Morgan Stanley to advise it in negotiations on restructuring $11B of loans and bonds, Bloomberg reports.
- SDRL has $2.6B of unsecured bonds and $8.4B of bank facilities, with nearly $3.5B of debt due by the end of next year, according to the report.
- CEO Per Wulff has said SDRL aims to have a plan agreed with bondholders and banks by the end of June, but that reaching to a deal will be complex, in part because the company has more than 40 bank creditors across a dozen syndicates.
Tue, Mar. 29, 9:18 AM
Thu, Mar. 24, 9:18 AM
Seadrill Ltd. is an offshore drilling contractor providing offshore drilling services to the oil and gas industry. Its primary business is the ownership and operation of drillships, semi-submersible rigs, jack-up rigs, tender rigs for operations in shallow, mid, deep, and ultra deep-water areas,... More
Sector: Basic Materials
Industry: Oil & Gas Drilling & Exploration
Country: United States
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