Why December 11 Is So Important for Seadrill
The upcoming week is important for Seadrill as the expiration of its go-shop period nears.
On Thursday, November 30, 2017, oil leaders agreed to extend the production cuts until the end of 2018.
In October 2017, three drilling permits were issued in the shallow waters of the Gulf of Mexico. In August and September, however, no drilling permits were issued.
On November 14, 2017, Citigroup reduced the target price for Ensco (ESV) to $7.50 from $7.70.
In 3Q17, Seadrill Partners’ (SDLP) adjusted EBITDA was $161.2 million compared to $164.6 million in the previous quarter.
Seadrill Partners’ (SDLP) vessel and rig operating expenses rose 23% to $96.9 million in 3Q17 compared to $78.5 million in 2Q17.
Seadrill Partners’ (SDLP) backlog was $1.7 billion on November 21, 2016. It fell from $1.9 billion in August 2017.
In 3Q17, Seadrill Partners’ (SDLP) operating revenue rose to $277 million from $268 million in 2Q17 after falling for the last five quarters.
Like 2016, this year hasn’t been good for offshore drillers. All the offshore drilling stocks have negative year-to-date returns.
On November 14, 2017, Citigroup reduced the target price for Ensco (ESV) to $7.5 from $7.7. Citigroup also reduced Noble’s (NE) target price.
Pacific Drilling (PACD) filed for Chapter 11 bankruptcy protection in an aim to restructure roughly $3 billion in debt.
Analysts expect Seadrill Partners’ EBITDA to fall 20% in 3Q17. They estimate 3Q17 EBITDA of $121 million, compared to $252 million in 2Q17.
Wall Street analysts estimate that Seadrill Partners’ (SDLP) 3Q17 revenue will be $236 million, a 12% fall from $267.9 million in 2Q17.
Seadrill Partners (SDLP) is scheduled to release its 3Q17 results on Tuesday, November 21, 2017. In the last three months, SDLP stock has risen 41%.
In the week ending November 10, 2017, analysts revised target prices for Transocean (RIG), Rowan Companies (RDC), and Noble (NE).
In the week ending November 10, 2017, all of the offshore drilling stocks traded in the green.
After Transocean (RIG) released its 3Q17 results, some analysts raised their target prices for the stock. Bernstein raised its target price for Transocean to $11 from $10, and Susquehanna raised its target price…
In 3Q17, Transocean (RIG) successfully reduced its costs. Despite a fall in revenue, Transocean’s drilling-to-revenue ratio fell to 46% in 3Q17 from 47% in 2Q17. In 3Q16, the ratio was…
Operating cash flow represents cash flow from a company’s core operations. In 3Q17, Transocean’s (RIG) cash flow from operations rose to $384 million from $319 million in the previous quarter.…
As of October 26, 2017, Transocean (RIG) had a backlog of $9.4 billion, compared with $10.2 billion in July 2017. A company’s backlog can give some indication of its future…