Disruptive Investor
Long/short equity, Deep Value, event-driven, macro

Seadrill Partners: Undervalued With Significant Growth Upside

Seadrill Partners (NYSE:SDLP), which is a limited liability company formed as a wholly owned subsidiary of Seadrill Limited (NYSE:SDRL), is an attractive buy with significant revenue and a dividend distribution bump up expected over the next few years. This investment note discusses the growth triggers and the valuations considering the growth potential.

Seadrill Partners is in the business of owning, acquiring and operating offshore drilling rigs. As of June 2013, the company had five operating rigs with an average remaining contract term of 3.8 years and a total contract backlog of $2.5 billion. The contract coverage comes from Chevron (NYSE:CVX), Total (NYSE:TOT), Exxon (NYSE:XOM) and BP (NYSE:BP). A...

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