Company News

Transocean Buying Transocean Partners in $1.6B Deal

Rigzone
01/08/2016 21:13
Visualizações: 2210 (0) (0) (0) (0)

Transocean Ltd. is acquiring all outstanding common units of its master limited partnership (MLP), Transocean Partners LLC, in an all-equity deal estimated to have an enterprise value of $1.6 billion.

 

The share-for-unit transaction will grant the MLP’s unitholders 1.1427 Transocean shares for each partnership unit, which has an exchange ratio representing a 15 percent premium to its closing price July 29, according to a Transocean news release. Once the transaction is complete, the company will have a 51 percent ownership in the Discoverer Inspiration, the Discoverer Clear Leader and the Development Driller III.

 

Jeremy Thigpen, Transocean CEO, said in the statement that the all-equity transaction is consistent with the company’s liquidity objectives. In addition, the merger provides an immediate benefit to Transocean from a simplified administration and governance, as well as tangible cost savings, he said.

 

Analysts at Tudor Pickering Holt & Co. (TPH) in Houston said the non-cash deal increases Transocean’s liquidity and adds cash flow. Two of the three rigs that Transocean takes in the merger are contracted at $580,000 per day through October 2018.

 

In addition, TPH said in a note to investors, “We always struggled to see benefits of offshore rigs housed in an MLP [yield vehicle] given offshore pricing/contracting outlook.”

 

MLPs are typically structured as growth vehicles, and Transocean’s partnership took a 6.6 percent yield in its initial public offering. But in the current market, TPH noted, growth is “all but impossible.” The analysts said the merger is a nice step in the right direction, but it’s not a game changer.

 

Earlier this year, Thigpen said it will likely be another three years before Transocean and other large offshore drilling rig suppliers will be able to command higher rates for offshore rigs.

Most Read Today
see see
OTC Brasil 2025
Experts warn regulatory instability threatens US$100 bil...
28/10/25
International Company News
Sercel Awarded Major Contract by ONGC to Supply Sercel 5...
28/10/25
Record
Petrobras announces production record of FPSO Almirante ...
28/10/25
OTC Brasil 2025
Event brings together global offshore industry leaders a...
28/10/25
OTC Brasil 2025
Petrobras participates in OTC Brasil 2025, in Rio de Janeiro
28/10/25
Petrobras
Petrobras produced 3.14 million barrels of oil equivalen...
27/10/25
FIRJAN
By 2035+, Rio de Janeiro State’s Energy Potential Could ...
23/10/25
Pre-Salt
PPSA to auction in December the first share of governmen...
23/10/25
Auction
Petrobras wins auction and leases RDJ07 terminal at the ...
23/10/25
Permanent Offer
Equinor acquires two new blocks in the Campos Basin duri...
23/10/25
OTC Brasil 2025
OTC Brasil 2025 Kicks Off in One Week with a Packed Prog...
22/10/25
Agreement
Wärtsilä Lifecycle agreement renewed to maintain safe, r...
22/10/25
Petrobras
Petrobras receives operating license for deepwater explo...
20/10/25
Equatorial Margin
License Grant for Drilling in the Equatorial Margin Is P...
20/10/25
Equatorial Margin
ABESPetro Statement on the Licensing of the Equatorial M...
20/10/25
Energy Transition
BNDES, Petrobras, and Finep select Valetec to manage the...
20/10/25
Pre-Salt
Petrobras and PPSA sign equalization agreement for Jubar...
20/10/25
WPC Energy Youth Forum
Kuwait to Host 8th WPC Energy Youth Forum in October 2025
20/10/25
Exports
Petrobras signs contract to sell six million barrels of ...
20/10/25
Petrobras
Petrobras puts the Harpia supercomputer into operation
10/10/25
PPSA
PPSA Publishes Notice for the Non-Contracted Areas Auction
10/10/25
VEJA MAIS
Newsletter TN

Contact us

We use cookies to ensure you have the best experience on our website. If you continue to use this site, we will assume that you agree with our Privacy Policy, terms of use and cookies.