Richard Zeits • 92 Comments
Power Hedge • 98 Comments
Jun. 12, 2015, 10:29 AM
- The year-long oil price rout has depressed Pacific Drilling’s (PACD +4.9%) market value by nearly two-thirds, making it an attractive takeover target for operators looking to strengthen their presence in ultra-deepwater drilling, Bloomberg writes.
- PACD already has garnered interest from larger rivals such as Ensco (ESV -1.2%), Transocean (RIG -2.8%) and Seadrill (SDRL -1.9%) in the last 12-18 months, with one of the approaches coming as recently as this year, according to the report.
- PACD is not believed to be actively exploring a sale, but the shares are trading well below replacement value for the rigs that they own, Evercore analyst James West points out.
Nov. 17, 2014, 3:59 PM
- In the wake of Halliburton's (NYSE:HAL) $34.6B offer for Baker Hughes (NYSE:BHI), it appears the next hot sector for M&A action is energy: More consolidation is likely, given the weakness for stocks in the oilfield services subsector, low interest rates, and as a drop in demand for oil increases cutthroat pricing competition.
- Speculation is running rampant as investors try to figure out who is next in an industry that is sure to undergo some more consolidation; some names identified as possible candidates include Kodiak Oil and Gas (NYSE:KOG), Marathon Oil (NYSE:MRO), Northern Oil and Gas (NYSEMKT:NOG), Anadarko Petroleum (NYSE:APC), Pioneer Natural Resources (NYSE:PXD).
- GE could go after National Oilwell Varco (NYSE:NOV) to show it is serious about the energy industry after last year’s purchase of pumpmaker Lufkin, Royal Bank of Canada says, and Oppenheimer says even BP could be an acquisition candidate.
- But Morgan Stanley does not see offshore drillers getting in on the action, as larger players like Diamond Offshore (NYSE:DO), Transocean (NYSE:RIG) and Seadrill (NYSE:SDRL) are still addressing dividend concerns while smaller companies such as Atwood Oceanics (NYSE:ATW) and Pacific Drilling (NYSE:PACD) still trade close to replacement value.
Aug. 22, 2014, 8:07 AM
- Rosneft (OTC:RNFTF) will take a 30% stake in North Atlantic Drilling (NYSE:NADL) at $9.25 a share in exchange for 150 of its drilling rigs, building on a preliminary agreement discussed in May.
- The deal represents a deepening of the already strong relationship between Rosneft and Seadrill (NYSE:SDRL), which owns 70% of North Atlantic Drilling.
- Last month, Rosneft agreed to lease six offshore drilling rigs from North Atlantic Drilling by 2022, in a contract worth $4.25B.
- Previously: Rosneft to acquire shares in North Atlantic Drilling
Nov. 18, 2013, 9:41 AM
- Seadrill (SDRL) reportedly is interested in buying Saipem's offshore drilling business in a deal that could cost as much as €3.9B.
- Such a deal could be positive for both Saipem (SAPMY, SAAYY) and parent Eni (E) by cutting their debt levels, analysts say.
- Proceeds from SDRL’s planned New York listing of its 74%-owned North Atlantic Drilling subsidiary could provide the funding for such an acquisition.
Nov. 15, 2013, 8:40 AM
- Seadrill (SDRL) agrees to acquire Prospector Offshore, owner of the yard construction contract for the new-build, high-specification jack-up rig Prospector 3.
- SDRL will pay $235M for the business; including drilling and handling tools, spares and operations penetrations will bring the total cost for the rig, ready to drill, to ~$250M.
- SDRL says the lack of premium jack-up new-build activity over the past decade is beginning to be felt and demand currently exceeds supply, with the tightness in the market leading many operators to contract the units for increasingly longer terms.
Nov. 21, 2012, 5:47 PMA midday pop in Pacific Drilling (PACD) based on takeover chatter didn't hold up as shares ended slightly lower, but FT's Bryce Elder thinks there's credibility to the talk. The habitually acquisitive Seadrill (SDRL) posts Q3 results on Monday and has raised more than $2B in the past three months via asset sales and a bond issue, Elder notes. | Nov. 21, 2012, 5:47 PM | 1 Comment
Nov. 5, 2012, 5:00 AM
Seadrill (SDRL) signs an MOU to sell rigs to Malaysian oil and gas service provider SapuraKencana Petroleum for $2.9B as part of a deal to merge the companies' rig operations. SDRL will receive at least $350M in new shares in SapuraKencana and two seats on its board. It plans to use the proceeds from the sale to expand its deep water fleet and invest in the jack up sector. Shares -1.2% in Stockholm. (PR)| Nov. 5, 2012, 5:00 AM