Offshore drilling contractor Seadrill Limited (SDRL - Free Report) has announced its plan to sell three tender-assist units, namely the West Vencedor, T-15, and T-16, to Energy Drilling Pte. Ltd. The sale will generate approximately $85 million in cash proceeds for Seadrill. The tender-assist units are specialized offshore vessels that could be deployed for development drilling, well completion as well as plug and abandonment.
The agreement stipulates that Edrill will take over the operations and marketing of these units, which are currently managed by the Singapore-based firm under existing agreements. The transaction is expected to be completed in the early third quarter of this year.
The sale of these units presents significant benefits for Seadrill. First, it allows the company to unlock value and generate substantial cash proceeds. This influx of cash will enhance Seadrill's financial position and provide flexibility for future investments and operations. It can be utilized for debt reduction, capital expenditures, or other strategic initiatives, thereby strengthening the company's overall financial stability.
Additionally, the sale aligns with Seadrill's strategic focus on optimizing its asset base. By divesting non-core assets such as the tender-assist units, Seadrill can streamline its operations and concentrate on high-grading its portfolio in an attempt to be more profitable.
Hamilton, Bermuda-based Seadrill is a market-leading international driller with strong exposure in key strategic basins like the U.S. Gulf of Mexico, Brazil and Angola. SDRL has transformed its capital structure through accretive transactions and continues to deliver operational excellence. The Zacks Rank #1 (Strong Buy) company's sophisticated fleet of drilling rigs, together with its operational efficiency, positions it nicely to secure contracts in the expanding offshore market.
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Other Energy Stocks to Buy
Apart from Seadrill, investors interested in the energy space might also look at operators like Profire Energy (PFIE - Free Report) , Evolution Petroleum (EPM - Free Report) and Smart Sand (SND - Free Report) , each carrying a Zacks Rank #2 (Buy) currently.
Profire Energy: The 2023 Zacks Consensus Estimate for Profire Energy indicates 125% year-over-year earnings per share growth. PFIE has a trailing four-quarter earnings surprise of 11.1%, on average.
Profire Energy is valued at around $57.8 million. PFIE has seen its shares inch up 0.5% in a year.
Evolution Petroleum: It is valued at some $263.2 million. The Zacks Consensus Estimate for EPM’s fiscal 2023 earnings has been revised 20.7% upward over the past 60 days.
Evolution Petroleum, headquartered in Houston, TX, has a trailing four-quarter earnings surprise of roughly 38.4%, on average. EPM shares have gained 34.1% in a year.
Smart Sand: SND beat the Zacks Consensus Estimate for earnings in three of the trailing four quarters and missed in the other. Smart Sand has a trailing four-quarter earnings surprise of 183.3%, on average.
SND is valued at around $67 million. Smart Sand has seen its shares drop 27% in a year.
Disclaimer: This article has been written with the assistance of Generative AI. However, the author has reviewed, revised, supplemented, and rewritten parts of this content to ensure its originality and the precision of the incorporated information.
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Offshore drilling contractor Seadrill Limited (SDRL - Free Report) has announced its plan to sell three tender-assist units, namely the West Vencedor, T-15, and T-16, to Energy Drilling Pte. Ltd. The sale will generate approximately $85 million in cash proceeds for Seadrill. The tender-assist units are specialized offshore vessels that could be deployed for development drilling, well completion as well as plug and abandonment.
The agreement stipulates that Edrill will take over the operations and marketing of these units, which are currently managed by the Singapore-based firm under existing agreements. The transaction is expected to be completed in the early third quarter of this year.
The sale of these units presents significant benefits for Seadrill. First, it allows the company to unlock value and generate substantial cash proceeds. This influx of cash will enhance Seadrill's financial position and provide flexibility for future investments and operations. It can be utilized for debt reduction, capital expenditures, or other strategic initiatives, thereby strengthening the company's overall financial stability.
Additionally, the sale aligns with Seadrill's strategic focus on optimizing its asset base. By divesting non-core assets such as the tender-assist units, Seadrill can streamline its operations and concentrate on high-grading its portfolio in an attempt to be more profitable.
Hamilton, Bermuda-based Seadrill is a market-leading international driller with strong exposure in key strategic basins like the U.S. Gulf of Mexico, Brazil and Angola. SDRL has transformed its capital structure through accretive transactions and continues to deliver operational excellence. The Zacks Rank #1 (Strong Buy) company's sophisticated fleet of drilling rigs, together with its operational efficiency, positions it nicely to secure contracts in the expanding offshore market.
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Other Energy Stocks to Buy
Apart from Seadrill, investors interested in the energy space might also look at operators like Profire Energy (PFIE - Free Report) , Evolution Petroleum (EPM - Free Report) and Smart Sand (SND - Free Report) , each carrying a Zacks Rank #2 (Buy) currently.
Profire Energy: The 2023 Zacks Consensus Estimate for Profire Energy indicates 125% year-over-year earnings per share growth. PFIE has a trailing four-quarter earnings surprise of 11.1%, on average.
Profire Energy is valued at around $57.8 million. PFIE has seen its shares inch up 0.5% in a year.
Evolution Petroleum: It is valued at some $263.2 million. The Zacks Consensus Estimate for EPM’s fiscal 2023 earnings has been revised 20.7% upward over the past 60 days.
Evolution Petroleum, headquartered in Houston, TX, has a trailing four-quarter earnings surprise of roughly 38.4%, on average. EPM shares have gained 34.1% in a year.
Smart Sand: SND beat the Zacks Consensus Estimate for earnings in three of the trailing four quarters and missed in the other. Smart Sand has a trailing four-quarter earnings surprise of 183.3%, on average.
SND is valued at around $67 million. Smart Sand has seen its shares drop 27% in a year.
Disclaimer: This article has been written with the assistance of Generative AI. However, the author has reviewed, revised, supplemented, and rewritten parts of this content to ensure its originality and the precision of the incorporated information.
Infrastructure Stock Boom to Sweep America
A massive push to rebuild the crumbling U.S. infrastructure will soon be underway. It’s bipartisan, urgent, and inevitable. Trillions will be spent. Fortunes will be made.
The only question is “Will you get into the right stocks early when their growth potential is greatest?”
Zacks has released a Special Report to help you do just that, and today it’s free. Discover 5 special companies that look to gain the most from construction and repair to roads, bridges, and buildings, plus cargo hauling and energy transformation on an almost unimaginable scale.
Download FREE: How To Profit From Trillions On Spending For Infrastructure >>
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