New User:

Forgot your password?

Stock Market & Financial Investment News

News Breaks
July 17, 2014
13:31 EDTSDLPSeadrill Partners acquires additional 28% interest in Seadrill Operating
Seadrill Partners announced today that it has entered into an agreement with Seadrill Limited pursuant to which it will acquire an additional 28% interest in Seadrill Operating for approximately $373M. After completion of the acquisition, the company will own a 58% interest in Seadrill Operating which is now in line with the ownership level of the company's other ultra-deepwater operating company which is 51% owned. The objective of the transaction is to increase exposure to assets that are well known to the company and that have stable cash flows. The transaction is expected to be cash flow and net asset value accretive and therefore to lead to increased distributions. The acquisition of additional interests is expected to close before the end of July and will be financed by funds from recent common unit offerings and surplus funds from the company's recent term loan B financing. The Board of Directors and the Conflicts Committee of the Board have approved the terms and conditions of the acquisition. The Conflicts Committee retained a financial advisor to assist with its evaluation of the transaction. The acquisition is expected to be accretive and is consistent with the Company's growth and diversification strategy. The Board believes that the long-term fundamental outlook for the offshore drilling industry remains strong, and is positive about the company's future growth prospects.
News For SDLP From The Last 14 Days
Sign up for a free trial to see the rest of the stories you've been missing.
March 30, 2015
06:56 EDTSDLPSeadrill Partners receives notice of termination for West Sirius contract
Seadrill Partners (SDLP) has received a notice of termination from BP Exploration & Production (BP) for the contract for the West Sirius which will be effective after having completed the current well and demobilization, which Seadrill Partners estimates to be by early May. Prior to the cancellation notice, the dayrate and term for the West Sirius and West Capricorn contracts were swapped. The West Sirius dayrate was decreased by $40,000 per day and the term was decreased by two years to expire in July 2017 while the dayrate for the West Capricorn was increased by $40,000 per day and the term was extended by two years to expire in July 2019. Amortized payments for the West Capricorn such as mobilization and upgrades will continue on the original schedule ending in July 2017. In accordance with the cancellation provisions in the West Sirius contract, Seadrill Partners will receive payments over the remaining contract term, now expiring in July 2017. As a result of the termination, Seadrill Partners' backlog will decrease by approximately $160 million. After taking into consideration the expected decrease in operational expense while the unit is cold stacked, and the fact that termination fee payments will not be impacted by downtime, Seadrill Partners does not expect a material impact on its cash flow position over the contract period through July 2017.

Sign up for a free trial to see the rest of the stories you've been missing.

I agree to the disclaimer & terms of use