If this is indeed the bottom for oil, which I really do hope but who knows, then deep water and SeaDrill will be OK. Adjusting for somewhat lower dayrates, 48 where Brent is right now is just about the break even point according to the chart SeaDrill put out a couple of months ago which showed 52 for deep water. Since deep water wells are expected to produce for 10 to 30 years the oil companies will assume that oil will not stay flat at 48 for 20 years and will keep on drilling with SeaDrill's ships.
I bought as a multi-decade hold to pass on. I liked the dividend but I can take a dividend-less year or two if it improves the company's chances of surviving and prospering going forward. I think this move does so. Fredricksen seems to have learned a lesson from his FRO problem.
Looks like a gap down to 15 to 17 area. At least uncertainty about dividend is over. Yuck. Seems to be quite a few contract extensions.
Is the strategy to drive the price down and buy back ten percent of the shares super cheap before the stock price moves back up? John does think out of the box.
At the least SeDrill is making moves to eliminate bankruptcy fears and accumulate some cash for bargain hunting while the industry is on its posterior.
At first glance it looks good to me. Almost half a billion dollars of Seadrill's debt is wiped out, Seadrill gets a couple hundred million in cash, and for five years until the contract runs out Seadrill gets 84,000 dollars a day.
Of course after 2020 the ship will be gone from Seadrill (technically) instead of making money for Seadrill. Times are getting tough right now for drilling companies and this looks like a good idea to shore up the balance sheet.
Not real sharp in this type of finance so if I understand things wrong someone please correct me.
"They" will likely tell us exactly what to deliver once the rights have expired. Never been in this type situation before so just guessing. Maybe if the rights expire selling for 40 cents "they" will make folks like me who are short the calls deliver 40 dollars per call immediately. But if so who would I deliver it to? Would it complicate my income tax return for a piddling sum? Reckon we just wait and see. As you say a minor thing really but interesting.
I am short a few January calls. Etrade changed the symbol from SHLD to SHLD2. The contract was changed to me delivering 100 shares of SHLD and 100 rights if the calls get exercised. The rights will expire in a couple of weeks or so. I imagine they will use the final trading price of the rights and make me deliver that in cash along with 100 shares of SHLD. Maybe some formula to determine the amount of cash. Maybe a little cash for the rights even if the contract expires worthless as far as the stock itself is concerned.
Ackman is a clown maybe but I got a six-bagger following him into GGP when it was in bankruptcy. He has had, and will have in the future, his moments.
Saudi Arabia supposedly needs 100 dollar oil to fund its budget. However if oil is a little below 100 Saudi has a mere 400 billion dollars in reserves available to make up the difference. Saudi could take several years of low oil prices easily.
Only Democrats get multiple votes, sometimes continuing until well after death. Us Republicans can only vote once and then must hope against hope that the vote is not "lost".
That depends. 9 to 12 cents a year would be about one cent for June. Then if the trade has not yet closed when Q2 earnings come out the odd cent cannot be counted. An extra 3 or 4 cents in Q3 will be enough to cover the distribution fully in Q3 assuming no black swan disasters.
You should be careful about insulting us old folks. You may hurt an old dude's feelings and be reported to our Dear Leader's thought police. They will send you to one of the Dear Leader's re-education camps for an attitude adjustment. Once in a camp there is a 71.8 percent probability that you will never be heard from again.
What difference does it make now? as Hillary might say. LINE's production for 2014 is at or close to 100 percent hedged. Thus movements in spot oil prices don't mean much to LINE.
Putin against Obama is like a sub-teenage boy with morals brought up in a gentle environment going up against a hardened mature KGB killer. The boy may get lucky and win but basically his chances are pretty slim.
I second the previous reply. BWP is mainly a pipeline company, LINE/LNCO a field production company. Apples and oranges. As long as the dividend seems safe, which it does for the foreseeable future, I will ride out the dips and collect my money every month.
That said, BWP's troubles last week are probably the main reason for the recent drop in LINE/LNCO but the effect will only be temporary and the episode will be forgotten in a few months when LINE/LNCO's earnings, DCF, and distributions/dividends are all higher.
If AGNC had 65 cents in taxable income in Q4 (yes) and if things in Q1 are really going better than in Q4 (as management has indicated) then why would AGNC have to cut the dividend again? Your 50 to 55 cent prediction may turn out to be correct but I expect to at least see the last 65 cent dividend be maintained with a small raise not beyond reasonable hope.
Replace convertible debt that is above the conversion price with straight interest debt at a time of low interest rates. Sounds good to me. An eight year bond issue with the interest rate still being negotiated. Assuming that the Micron stock price is going to go up in the next year or two, which most rational posters here presumably do, this is a logical move.