Seadrill Limited Announces Settlement
Seadrill Partners, a subsidiary of Seadrill Limited (NYSE:SDRL) has agreed to 37 days of non-payment during a mobilization period as part of an operator settlement. The non-payment period is due to modifications and repairs needed to meet regulatory requirements and receive authorization from Canadian authorities to commence operation. The loss is expected to negatively impact the company’s third quarter results.
Offsetting this negative development, Seadrill has announced the negotiation of an extension contract for the east coast Canadian rig. The contract would extend operations to April 2017 and has an estimated revenue potential of $337 million.
Cheap Oil and Gas
This week the Department of Energy reported the highest weekly increase in oil inventory that the U.S. has seen in over a year. At the same time, gasoline inventories have increased and the U.S. is no longer the world’s largest importer of oil. This is all good news for companies that benefit from cheap energy. Low cost feedstock means lower operating costs and higher profits. To learn about three companies that will benefit from this cheap energy trend, click here.