Seadrill Partners LLC
Seadrill Partners: Analyst Recommendations and Valuation
Of the five analysts surveyed, 20% recommended a “buy” for Seadrill Partners, 60% recommended a “hold,” and 20% offered a “sell” recommendation.
Analysts Drop Seadrill Partners from Coverage
On February 2, 2017, Morgan Stanley upgraded Seadrill Partners (SDLP) and raised its target price to $8 from $7.
Seadrill’s 1Q17 Results: What Can Investors Expect?
Seadrill will release its 1Q17 results on May 24. In 4Q16, Seadrill’s revenue was $667 million—nearly 10% lower than revenue of $743 million in 3Q16.
Which MLPs Rose More than 6% Last Week?
Seadrill Partners (SDLP), the MLP involved mainly in offshore drilling, continued to be among the top MLP gainers for the second consecutive week.
Where Does Seadrill Partners’s Valuation Stand?
For the offshore drilling industry, we believe that the EV-to-EBITDA multiple reflects the perceived riskiness of investing in offshore drilling companies, as well as investors’ expectations for the industry’s outlook.
Seadrill Stock Rose 98% in Week 20
The offshore drilling industry made headlines last week, especially Seadrill (SDRL), which reached a 52-week high of $0.73.
How Offshore Drilling Stocks Performed in 4Q16
In this series, we’ll look at Wall Street analysts’ recommendations and ratings for offshore drilling companies.
Seadrill: Best Performer among Peers Last Week
Offshore drilling stocks had mixed returns in Week 30, which ended July 27. The best performer was Seadrill (SDRL).
How Offshore Drilling Stocks Performed Last Week
Most offshore drilling stocks traded in the green in the week ended July 13. The best performer during the week was Noble.
Transocean Has Highest Backlog of Its Peers
In an industry downturn, especially like the one offshore drillers are experiencing right now, it’s crucial to have a high backlog.
Why non-traditional master limited partnerships are growing (Part 1)
In recent years, non-traditional master limited partnerships have become more common. Read on for how this could affect MLPs as an asset class and investors.
Top MLP Losses in the Week Ending May 25
Legacy Reserves (LGCY) was the top MLP loss last week. Legacy Reserves fell 36.2% mainly due to the weakness in crude oil prices.
This Offshore Driller Has the Most Floaters and Jack-Up Rigs
Offshore (OIH) exploration and development wells are drilled with the use of rigs. Rigs come in various sizes and with various characteristics.
Top MLP Gainers in the Week Ending April 20
Navios Maritime Midstream Partners (NAP) was the top MLP gainer in the week ending April 20. Navios Maritime Partners rallied 29.2%.
Seadrill Stock Fell 32% in Week 21
Even after week 21’s fall in stock price, Seadrill still has a whopping 82.8% year-to-date return as of May 25.
A Look at Seadrill Partners’ Financial Health
As of December 31, 2015, Seadrill Partners has $3.9 billion in total debt on its balance sheet. Out of this, 8% (or $332 million) is in the form of short-term debt.
Pemex Terminates the Contract on West Pegasus with Seadrill
On August 22, Seadrill reported that it received a contract termination notice for its contract with Pemex Exploration Servicios on the rig West Pegasus.
Last Week’s Worst MLP Performers
Summit Midstream Partners (SMLP), a midstream MLP mainly involved in natural gas gathering, processing, and compression, was the worst MLP performer last week.
EWU Goes Bullish over Mining, Commodity Stocks on October 7
The iShares MSCI United Kingdom (EWU) rose 1.7% on October 7. Key stocks of the mining sector that rose that day were Anglo American, Antofagasta, Rio Tinto, Glencore, BHP Billiton, and Fresnillo.
Why PAA Was the Biggest MLP Loser Last Week
Plains All American Pipeline (PAA) was the biggest MLP loser last week, which ended on January 19, 2018. The partnership ended the week 6.1% lower.
Buoyant UK Stock Market Rose on Oil Price Rise
Russia’s meeting with Saudi Arabia regarding oil prices and its willingness to exchange views on the production and pricing strategy had a significant impact on oil prices this week.
Top MLP Losers in the Week Ending February 2
Teekay Offshore Partners (TOO) was the top MLP loser in the week ending February 2. The partnership fell 13.5% last week.
Top MLP Losers in the Week Ending March 2
NuStar GP Holdings (NSH) and its limited partnership, NuStar Energy (NS), were the top two MLP losers in the week ending March 2, 2018.
Sharp Fall in Crude Oil Pulled UK Inflation Down to 0
The ONS stated on Tuesday, September 15, that the annual inflation rate fell back to zero in August. The lower fuel prices are one of the reasons behind it.
What Factors Could Affect Seadrill Partners’ 1Q18 Revenue?
In 4Q17, Seadrill Partners’ (SDLP) total operating revenue fell to $256 million from $276 million in 3Q17.
Oil Hit $50 for 1st Time in 2016: Will It Help Offshore Drillers?
For the first time in 2016, oil prices touched $50 per barrel on May 26.
Seadrill Gets Contract Extension with Saudi Aramco
On December 29, 2016, Seadrill (SDRL) announced that it has secured a three-year contract extension from Saudi Aramco for its jackup AOD III.
What Do Analysts Expect for Seadrill Partners’ 1Q16 Earnings?
Seadrill Partners has beaten earnings estimates in the past four quarters. In 4Q15, SDLP’s reported EBITDA was 14% higher than estimates.
Must-know: Ocean Rig stock could double over the next year
I believe this stock could double over the next year from $20 to $40 as it’s rerated due to the lucrative MLP structure.
Seadrill Partners’ 3Q17 Revenue Rose: Can It Continue in 4Q17?
In 3Q17, Seadrill Partners’ (SDLP) operating revenue rose to $277 million from $268 million in 2Q17 after falling for the last five quarters.
Which Offshore Driller Will Have the Most Idle Rigs in 2016?
In this industry downturn, the demand for rigs is very scarce. As oil companies have announced further spending cuts for 2016, you can expect rig demand to deteriorate further.
Why Ocean Rig stock is currently trading at a discount
The company currently trades for 6.9 times 2015 consensus EBITDA and $685 million per rig, which is a premium to its peers.
Analyzing Ensco’s Backlog and Contracts
As of June 30, Ensco (ESV) had a total contracted backlog of $2.3 billion—compared to $2.8 billion as of December 31, 2017.
Ensco Stock Rose 6% after Its Second-Quarter Results
Ensco’s second-quarter revenues were 2.45% higher than expected. The company’s EBITDA was 11.6% higher than the consensus estimates.
Offshore Drilling Rig Count and Stocks Fell in Week 29
In Week 29, which ended on July 20, all offshore drilling stocks traded in the red. Seadrill (SDRL) fell the most.
Offshore Drilling Companies’ Technical Indicators
Earlier in this series, we analyzed and compared the business fundamentals of different offshore drilling companies. Now we’ll look at the technical indicators for these offshore drillers (XLE).
Comparing Offshore Drilling Companies’ Dividend Yields
Dividend yield indicates how much a company pays in dividends relative to its share price. It’s calculated as the dollar value of dividends as a percentage of the stock price.
Transocean Has the Highest Backlog among Its Peers
In the last part of this series, we saw which offshore drillers had the highest and lowest falls in their backlogs. In this article, we’ll compare offshore drillers’ backlogs versus their revenues.
Transocean: The Lowest Drop in Backlog among Peers
Toward the end of 2014, oil prices took a dip and the offshore drilling industry entered into a brutal downturn. Since then, offshore drilling companies have had a hard time securing contracts.
Best-Performing MLPs in the Week Ending July 6
Seadrill Partners (SDLP) was the top MLP gainer in the week ending July 6. Seadrill Partners rallied 12.1%.
All Offshore Tanker Stocks Fell in Week 24
In Week 4, which ended June 15, offshore drilling stocks fell along with oil prices ahead of OPEC ’s meeting scheduled for June 22.
Seadrill Partners Benefits from Rising Crude Oil Prices
The correlation between Seadrill Partners and crude oil has increased to 0.49 and 0.66 during the past three-month and one-month periods.
Week 22: Offshore Rig Count Is Flat from the Previous Week
Most of the offshore drilling stocks traded in the green in the week ended June 1, returning 3.0%–6.5%.
A Look at Seadrill Partners’ Backlog and New Contracts
Seadrill Partners’ (SDLP) backlog was $1.3 billion on May 24. It fell from $1.5 billion in February.
Transocean’s Stock Performance and Broad Equity Market Indexes
As of May 30, Transocean (RIG) stock had a good run in the last three months. The stock rose more than 37% during this period.
What Factors Will Affect SDLP’s Second-Quarter Revenue?
In the first quarter, Seadrill Partners’ (SDLP) operating revenue fell to $194.3 million from $256.2 million in the previous quarter.
Top MLP Gainers in the Week Ending May 18
CVR Refining (CVRR), a downstream MLP involved in crude oil refining, was the top MLP gainer last week. CVR Refining rose 17.1%.
Week 18: US Offshore Rig Count Rose by 1
In week 18, Ensco and Seadrill were the best performers among offshore drilling stocks. Diamond Offshore was the worst performer.
Offshore Drilling Stocks: Mixed Performances in March
As of March 29, Ensco’s stock price has dropped 1.1% since the beginning of the month. The stock is trading 53.7% lower than its 52-week high.
Rowan Companies: Fighting the Downturn
As of December 31, 2017, Rowan Companies has long-term debt of $2.5 billion. The company doesn’t have any debt maturities in 2018.
Week 10: Offshore Drilling Industry Update
Rowan Companies had the worst YTD returns as of March 9, 2018. The stock has fallen 23.2% since the start of the year.
Ensco’s Views on the Jack-Up and Floater Segments
Ensco (ESV) has the highest number of jack-up rigs among its peers.
Transocean’s Fleet: Rig Additions and Subtractions in 2017
In 2017, Transocean added two ultra-deepwater newbuild drillships—Deepwater Pontus and Deepwater Poseidon—to its fleet.
A Look at Seadrill Partners’ Cost Performance in 4Q17
Seadrill Partners’ (SDLP) vessel and rig operating expenses fell 3% to $94 million in 4Q17 compared to $96.9 million in 3Q17.
Seadrill Partners: How the Backlog Looks after 4Q17
Seadrill Partners’ (SDLP) backlog was $1.5 billion on February 22, 2018. It fell from $1.7 billion in November 2017.
How Diamond Offshore’s Debt Profile Stands after 4Q17
As of December 31, 2017, Diamond Offshore had long-term debt of $1.97 billion—compared to $1.98 billion in the previous year.
Diamond Offshore’s Backlog and Contracts
As of January 1, 2018, Diamond Offshore Drilling (DO) had a backlog of $2.4 billion—compared to $3.5 billion on January 1, 2017.
Drilling Deep into Diamond Offshore’s 4Q17 Results
Diamond Offshore Drilling’s (DO) total revenue fell 5.4% in 4Q17 to $346 million—compared to $366 million in 3Q17.
The Only 2 Offshore Drillers That Still Pay Dividends
Slumping oil prices have put offshore drillers (IYE) under financial pressure. The first victim of this pressure has been dividends.
Comparing Offshore Drillers’ Leverages
Offshore drilling (IYE) companies are capital intensive, so looking at their financial leverages is very important.
The Offshore Drillers with the Highest and Lowest Credit Ratings
Among the offshore drillers under our consideration in this series, Diamond Offshore Drilling (DO) has the highest credit rating by Moody’s at “Ba3.”
Which Offshore Driller Has the Highest Backlog among Its Peers?
In this article, we’ll look at offshore drillers’ backlogs in comparison to their revenues.
Sink or Swim: Which Offshore Drillers Survived the Downturn?
Offshore drillers have seen mixed returns on a year-to-date basis. The worst performer has been Rowan Companies, and the best performer has been Ensco.
Noble Corporation’s Latest Fleet Status Report
At the end of the third quarter, Noble Corporation’s backlog stood at $3.18 billion—down 1% from the previous quarter.
Moody’s Changed Seadrill Partners’ Outlook
On December 13, 2017, Moodys affirmed the “Caa2” rating on Seadrill Partners (SDLP) and changed the outlook to “stable” from “negative.”
Top MLP Losers in the Week Ending November 24
Southcross Energy Partners (SXE) was the top MLP loser in the week ending November 24. It fell 7.1% during the week. It has lost 11.6% in November.
Last Week’s Top MLP Gainers
CVR Partners (UAN), the MLP mainly involved in the production of nitrogen fertilizers, was the top MLP gainer last week. CVR Partners rose 7.7%.
Which MLPs Rose More than 4% in the Week Ending September 15?
Dominion Midstream Partners (DM) was the top MLP gainer in the week ending September 22, 2017. Dominion Midstream rose 12.1% during the week.
Seadrill Stock Rose 20% despite Bankruptcy
Seadrill (SDRL) stock closed at $0.28 on September 13, 2017. The stock rose more than 20% in a single day.
Top MLPs Losers Last Week, Ended September 1
Teekay Offshore Partners (TOO) was the top MLP loser last week, which ended September 1, 2017. It fell 6.3%.
Seadrill Gives Its Outlook for Offshore Drilling Industry
On August 24, 2017, Seadrill’s stock price fell to a new 52-week low of $0.15. The stock is down 94.4% from the start of the year as of August 29, 2017.
Seadrill Partners Resumes Its Dividend Distribution
Seadrill Partners will resume its dividend payments. It declared a quarterly cash dividend of $0.10 per share for the first and second quarter.
Seadrill Partners’ 2Q17 EBITDA Is Expected to Fall 41%
Analysts expect Seadrill Partners’ EBITDA to fall 41% in 2Q17. Analysts estimate that its 2Q17 EBITDA will be $129 million—compared to $219 million in 1Q17.
Seadrill Partners Stock Rose 17.9% in the Last Trading Session
Seadrill Partners (SDLP) stock closed at $3.15 on August 17, 2017. The stock rose 17.9% in one day, which brought its YTD (year-to-date) return to -25%.
Offshore Drillers: A Key Comparison of Backlogs
Since 2016, all offshore drilling stocks have been hit hard. In this series, we’ll compare the offshore drillers’ backlogs to see which companies could experience the maximum and minimum revenue falls in 2017 and 2018.
A Look at the Top-Performing MLPs in May 2017
Alon USA Partners (ALDW), a downstream MLP involved in crude oil refining, was the best-performing MLP in May.
Will Seadrill Partners’ Dividends Continue in the Future?
In 2Q16, Seadrill Partners cut its quarterly dividends to $0.10 per share—equivalent to an annual distribution of $0.40.
What Were Seadrill Partners Expenses in 1Q17?
Seadrill Partners’ (SDLP) vessel and rig operating expenses fell 10% to $75.8 million in 1Q17—compared to $84.3 million in 4Q16.
Why Seadrill’s Tendering Activity Matters to Its Medium-Term Outlook
Until an increased consistency can be seen in an upward trend of oil prices, many oil companies will likely remain focused on conserving cash.
Seadrill Has the Most ‘Sell’ Ratings among Its Peers
In this part of the series, we’ll compare Wall Street analysts’ consensus ratings for the offshore drilling companies we’ve been analyzing.
Analyzing the Credit Rating Downgrades of Offshore Drillers
In February 2016, Moody’s downgraded Noble (NE) to a Baa3 rating from a B1 rating. It downgraded Seadrill Partners (SDLP) by three notches to Caa2.
A Look at Top Performing MLPs in February 2017
Top MLP gainers of February 2017 Southcross Energy Partners (SXE), which is involved in natural gas gathering and processing, was the top MLP gainer in February 2017. SXE, which was close to filing bankruptcy in 2016, gained 52% in February. However, it is still trading far below the levels it was trading at before the […]
Credit Ratings for Offshore Drillers: Why They’re Deteriorating
Standard & Poor’s has downgraded Rowan Companies’ (RDC) credit rating to B+ from BBB and has given it a “stable” outlook. B+ is the lowest investment-grade rating.
A Look at the Financial Health of Offshore Drillers
Offshore drilling (IYE) companies are capital-intensive, so it’s important to look at their financial leverages.
Ocean Rig Stock Fell 32% after Its 3Q16 Results
Ocean Rig released its 3Q16 results on December 14 after the market closed. Investors seem disappointed with Ocean Rig’s results and conference call.
Key Highlights of Diamond Offshore’s 3Q16 Results
In 3Q16, Diamond Offshore’s revenue exceeded analysts’ expectations of $128 million by 9.5%. The company’s revenue was $140 million.
No Shallow Water Drilling Permits for 2nd Consecutive Month
No drilling permits were issued to drill new wells in the shallow water of the Gulf of Mexico in September.
Ensco: A Deep Fall in Earnings Seems to Be Inevitable
Ensco’s backlog In 2Q16, Ensco’s (ESV) blend-and-extend agreements with its customers helped add some revenue backlog for the company. However, these additions aren’t sufficient to recoup the utilized backlog in the second quarter. On June 30, 2016, Ensco (ESV) had a total backlog of $4.1 billion compared to $5.2 billion at the end of 1Q16. Ensco’s backlog-to-trailing-12-month-revenue ratio […]
Seadrill Partners’s View on the Offshore Drilling Market
In 2Q16, oil prices stabilized in $40–$50 range. According to Seadrill Partners (SDLP), there is a growing belief that these prices are at or near the bottom of the cycle.
Which Offshore Drillers Are Still Paying Dividends?
Slumping oil prices have put offshore drillers (IYE) under financial pressure. The first victim of this pressure is dividends.
What Utilization Rates Mean for Offshore Drilling Investors
The utilization rate is an important indicator to gauge demand and activity in the offshore drilling industry. The utilization rate for drillships fell to 73.3% in February 2016, compared to 73.9% in January.
Seadrill Partners’ Parent Company May Increase Its Worries
Seadrill Partners’ parent company is Seadrill. Seadrill’s failure to comply with covenants could have an adverse effect on Seadrill Partners.
Diamond Offshore and Rowan Companies: Best Offshore Stocks Lately
In this series, we’ll help you screen key metrics for nine offshore drillers. This is a starting point to help you figure out which offshore drilling stocks to long or short based on the current industry outlook.
Assessing Seadrill Partners’ Financial Health
Seadrill Partners’ has a debt-to-equity ratio of 192%, and Seadrill has a ratio of 116%. Seadrill Partners is more leveraged than other offshore drillers.
Will Seadrill Partners’ Backlog Ever Bounce Back?
Out of Seadrill Partners’ 11 rigs, ten are fully contracted throughout 2016. The backlog for the next five quarters stands at ~$1,800 million.
Seadrill Partners’ High Dividend Yield: Too Good To Be True?
Seadrill Partners has a very attractive current dividend yield of 52.9% as of December 11, 2015. Is such an attractive investment too good to be true?
Seadrill Partners’ Cost Reduction Will Keep the EBITDA Constant
For the third quarter, Seadrill Partners’ EBITDA rose slightly by $3 million to $266 million from the second quarter’s EBITDA of $263 million.
All Major MLP Securities Gained Last Week, but YMLP Fell
The Yorkville High Income MLP ETF (YMLP) fell 1.5% in the week ended October 2. For context, the broad market SPDR S&P 500 ETF (SPY) rose 1.1%, and the Energy Select Sector SPDR ETF (XLE) rose 2.4%.
UK Market Upbeat over Report of Rise in Wages
The stock rally continued from Tuesday, September 15, to Wednesday, September 16, in the UK stock market. The iShares MSCI United Kingdom ETF (EWU) rose 2.31% on September 16.
YMLP Outperforms Broad MLP Index AMZ in Week Ended September 4
Of the MLPs in YMLP, 30% are involved in marine transportation, 25% provide energy services, and 20% are exploration and production MLPs. Downstream MLPs account for 17% of YMLP’s holdings.