I really can't see a great reason SDRL should go up more today and SDLP continue down.
In other words, no reason for it to be trading down from $9 to $8 except short attack.
Seadrill Partners reports net income attributable to Seadrill Partners LLC Members for the second quarter 2015 of $101.3 million and operating income of $205.5 million.
Generated distributable cash flow of $84.7 million with a coverage ratio of 1.53 for the second quarter 2015.
Declared a $0.5675 per unit distribution for the second quarter, in line with the first quarter distribution.
Economic utilization for the second quarter of 97%
91% of debt matures after 2021
Coverage of distribution was 1.48x for the last one
I think picking up shares in this for $8 might have been a short attack after all. $4,000,000 was all that would have been needed to drive the price from $9.20 to $8.
Sorry if you got stopped out by this attack.
It is the million dollar (well, maybe thousand dollar) question now.
If Seadrill Partners crashed because they are going to reduce the payout, Seadrill should also have crashed because they get 48% of this payout. Instead, Seadrill was up 2%.
With such low volume on Seadrill Partners, it very well could have been a short attack. Be interesting to see what it does tomorrow and Friday.
$8 a share with a $2.26 payout. It does seem unlikely this can be sustained, but bet on volatility no matter what news tomorrow. I think you could ride this back to 10 in an hour of trading or ride it down to 7.
Consider that Seadrill owns 48% of SDLP. You would think if a dividend cut (it isn't really a dividend though) is in order, Seadrill would be down big today.
I know they are not the same company, but that is sort of a positive for SDLP.
Short attack to take out people on margin?
It is relevant but RIG and SDLP are very different. SDLP provides funding to SDRL, which already cut the dividend. If SDLP reduced the dividend to zero, and therefore reduced payments to SDRL to zero, then how could SDRL possibly survive? Well, actually maybe SDRL won't survive.
No corresponding drop in SDRL...just a low volume thing?
I am probably the bond guy here now, unless some other is less vocal which is entirely possible.
I only hold the 2019 bonds right now though. Because of cash on hand and cash flow, I do not think TC will be going bankrupt soon, if ever, so the 2019 had the best risk/reward, especially at 61 of par (when I bought them though they were more and the 2017 were trading at 106 of par)
They are better than equity aside from the small recovery you may get because they cannot be diluted.
TC streams the remaining gold before bankruptcy anyway, so watch for that event first.
I do not think TC is going bankrupt though.
They have not missed an earnings in over a year. Just sit back and collect the 3% dividend that only consumes 20% of the profit. In other words, that 3% is rock solid, better than a 10 year US treasury.
Thanks smile. I have s_caldararo on ignore but I did click show post to see what he was babbling about...typical stuff so he is back on ignore.
I just purchased 3k shares at 4.859
Smaller than what I would have but you know with this China stuff, got to keep some spare cash for the real wash out days.
I figure there is a bottom here around $4, and upside to $6, both near term. $4.86 per share tilts toward the risk/reward in my favor by a smidge.
You joke, but just from your post I now see people standing in line at the Apple store around the block waiting to be the first to buy an i-toilet.
If you think they did not buy back shares on Monday with that type of price movement and volume, you are delusional.
We won't know how much of course until it is reported in later days.