They still have revolver availability for for the newbuilds and any maturing debt. I have to stress the quality of their assets and there relatively moderate leverage as opposed to the cash flows being thrown off.
What about the payments for the new builds and the upcoming debt maturities...??
IMO making the current interest payments is not the issue at PACD
As it stands now "support" for PACD to me means......
Either a new drilling contract or a new financing deal to stretch
As long as Brent trades under $ 75 this stock makes no
Buyback shows they have flexibility in revolver. I hope they buy more (equity should love leverage) but I understand if they do not. They want to keep there jobs and BK or buyout would not help their cause.
Remember that Donald Trump was insolvent in 1991. The banks just did not foreclose because he had them over a barrel. Same thing with PACD. They are bearhugging the bank and paying off other debtholders. These are good assets will have to be no new contracts for years for the banks to foreclose.
A whole bunch of the offshores are up today. Wonder if someone is coming out with an upgrade on the sector.
No apologies required....!!!
All are welcomed to post & your contributions are
interesting and valued at least by me..
Lastly I think the bankers would turn over PACD
rigs in a BK quickly....they wold never try to run the
I gotta go w/ Eddie on this one. Just like airlines (users of high tech aircraft) there are plenty of operating companies that can supply a high spec. UDW DS. The accounting department in San Ramon could give two hoots about which driller it is which is why, just like airlines, I don't know of any publicly traded drilling company that's' ever recouped their cost of capital; i.e. it's an ugly business from an owner's prospective.
I do find it darkly humorous that the longest thread I've seen on this board has the subject "a crazy idea".
Why I think about these things, I don't know. In any event, let us hope it is not your legacy on this board, nor the longest thread, in the end.
Hopefully the longest thread will be about the bidding war for PACD. Probably with me still sitting on the sidelines. That would be rough justice.
I agree, and I probably should have not chimed in.
This is a reasonably civil board, and I just don't like hearing the term stupid, even if it was meant about the company not being stupid, vs your idea. Heck, I have not take a position yet, but I value this board.
So, apologies on my part.
That said, in the mid 70's, do you know who owned 25% of Intel? It was IBM. They bailed them out from competition from the Japanese on memory chips. So, saying that it is stupid to have an equity investment to keep one of your key suppliers stable is easily shown to be false. Now, it might have back fired on IBM just a little bit, but stuff happens.
Better that CVX does it (or another driller) than the banks take over. I agree with Ed on that. How many bankers have even been on the ocean, let alone a drill ship?
As always, best of luck,