They are paying down debt, at least they say so. I did not see a definitive plan from the CC
All i am saying is at 50 to 60 bucks they can manage for 2015 with their hedges. Once they come off it become much more difficult . One has to be a realist , I would not be investing in PGH for the divy at this point, that makes no sense. I can get equivalent return with much less risk. One can be investing in PGH for a turn around in oil as a spec. yes, but there is a big world out there, and there are other options.
and what is the cost, to have these rigs ready stacked...this could get real ugly....be careful.
Whats a matter you !.....thats right....the market is set beyond SDRL. Have a six gen rig, while whomever pays the last contract dictates the going forward price. If a major renegotiates a contract, well than, the next major has more leverage to do so.....Bada Bing Bada Boom..the bottom expands to make room.
North Atlantic Drilling is still trying to find a work for West Navigator and for rigs whose contracts expire this year.
To heck with Craaaaaamer, what do you think, what's up in your old noggin. At 50.00 oil on the CC, they said it's " ZERO " rate of return...uuuuggghh ! They would need 70.00 oil for a " Twenty % " ROR, that's the min. at which they would consider it a time to put money to work. The divy could be whacked to zero, don't be fooled by candy canes dancing in your heads. Like I said before, I bought some citi preferred with a yield of 5.5 % with a whole lot risk. PGH is a speculative stock !....don't think different .....that's not say you can't make money here. It's that with oil at 50 to 60 bucks it will be very hard on PGH
And what if the S&P has a correction or a bear market starts. We are fast approaching 6 yr's of the bull, what's the longest on record. How about off balance sheet dept, they dropped a rig down for a billion bucks, was it worth that much...no way. Many many other factors here.
You need to lighten up man, SDRL is not a castle that needs to be defended against every and all comers. Sometimes you need to Listen to these CC's, more can be read into them that way. Any-who, lets face it, the drillers, all of them to one degree or another will be in the crapper in 2015. The trend is lower rates, re-negotiation of contracts, and cancellation. The discount on the debt !...if it widens...then you'll know.
With Feddie in buying, he now own 25 %, maybe he has been sitting on the 50 day, taking shares, sure does seem like someone is in there buying.
1. they are looking at 50.00 oil for 2015
2. they are looking for 17.50 discount on Canadian
3. they are looking for .85 on the Loonie
4. these are the criteria to maintain their debt outlook.
Can anyone give up a link for the Canadian discount on oil, I can't find anything. Thanks
It's on the Nasdaq web site: it's a nice breakdown, ez to understand if any folks want to to a little DD as opposed to some tribal warfare
A measurement of leverage, calculated as a company's interest-bearing liabilities minus cash or cash equivalents, divided by its EBITDA. The net debt to EBITDA ratio is a debt ratio that shows how many years it would take for a company to pay back its debt if net debt and EBITDA are held constant.
If a company has more cash than debt, the ratio can be negative. No problem here..LOL
For me nothing new, I have always stated that I believed contracts would be renegotiated and or canceled. Par for the course in a downturn
Says spending cuts by oil companies amid lower oil prices "has severely curtailed drilling budgets for at least 2015," and that it expects requests to reduce rig rates or terminate contracts early and "may be willing to engage in discussions" to modify contracts.