Tuesday, May 28, 2013

Investopedia: Seadrill Still In Motion, But Delivering Better Utilization And Dividends

Although I've had some issues with Seadrill's (Nasdaq:SDRL) aggressive (and highly levered) business plan, one thing really hasn't changed about this company – if you believe that various oil and gas majors are serious and committed to growing their production over the next five years, Seadrill is going to be a significant beneficiary. I sometimes wonder if Seadrill management is playing out some sort of deep-seated desire to be investment bankers with all of the elaborate deals and transactions they conduct, but the reality is that they are doing well in terms of contract coverage and dividend payments, and that counts for a lot.

Please read the full piece here:
http://www.investopedia.com/stock-analysis/052813/seadrill-still-motion-delivering-better-utilization-and-dividends-sdrl-rig-bp-xom-atw.aspx

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