
Friday, October 25, 2024 9:09:16 AM
https://www.msn.com/en-us/money/topstocks/transocean-seadrill-merger-would-be-logical-deal-at-logical-time-citi-says/ar-AA1sRZyf?ocid=BingNewsSerp
Seadrill (NYSE:SDRL) +9.5% in Thursday's trading following Bloomberg's report late yesterday that it is in merger talks with larger offshore driller Transocean (RIG), a deal Citi analysts think has a reasonably high probability of occurring.
Transocean (RIG) currently owns 24 active deepwater rigs and Seadrill (SDRL) has 11 active deepwater rigs, so a combination of the two companies would create the largest offshore operator.
Given that Transocean (RIG) is the only public offshore rig company to not go bankrupt in the last cycle and thus has loads of legacy debt, Citi analysts believe a merger would be a deleveraging event for Transocean and likely put the combined company on a much stronger financial footing.
Citi thinks Transocean (RIG) needs to take advantage of its premium valuation to purchase cash flow and accelerate its deleveraging, and Seadrill (SDRL) would seem a good fit given that its fleet mix of modern deepwater rigs fits with Transocean while scale is sufficiently large to reduce RIG's leverage by nearly 30% on 2025 estimates; while dayrates currently are healthy, there's concern over crude prices next year, suggesting now may be a good time for a deal, Citi says.
If the merger ultimately happens, Citi says it would expect Seadrill (SDRL) shares to be worth ~$55 while remaining accretive to Transocean (RIG) shares.
"Then there was a woman, a lion of a woman."
Recent RIG News
- Form 4 - Statement of changes in beneficial ownership of securities • Edgar (US Regulatory) • 02/13/2025 10:43:09 PM
- Form 8-K - Current report • Edgar (US Regulatory) • 02/12/2025 10:30:13 PM
- Transocean Ltd. Provides Quarterly Fleet Status Report • GlobeNewswire Inc. • 02/12/2025 10:21:37 PM
- Form 4 - Statement of changes in beneficial ownership of securities • Edgar (US Regulatory) • 02/10/2025 09:39:58 PM
- Form 4 - Statement of changes in beneficial ownership of securities • Edgar (US Regulatory) • 02/10/2025 09:38:00 PM
- Form 4 - Statement of changes in beneficial ownership of securities • Edgar (US Regulatory) • 02/10/2025 09:36:19 PM
- Form 4 - Statement of changes in beneficial ownership of securities • Edgar (US Regulatory) • 02/10/2025 09:33:20 PM
- Form 4 - Statement of changes in beneficial ownership of securities • Edgar (US Regulatory) • 02/10/2025 09:30:34 PM
- Investors in Transocean Ltd. Should Contact The Gross Law Firm Before February 24, 2025 to Discuss Your Rights - RIG • PR Newswire (US) • 02/10/2025 10:45:00 AM
- The Gross Law Firm Notifies Transocean Ltd. Investors of a Class Action Lawsuit and Upcoming Deadline • PR Newswire (US) • 02/06/2025 10:45:00 AM
- Final Deadline for the Transocean Ltd. Securities Lawsuit - Contact the DJS Law Group to Discuss Your Rights - RIG • PR Newswire (US) • 02/04/2025 12:14:00 PM
- The Gross Law Firm Announces the Filing of a Securities Class Action on Behalf of Transocean Ltd.(RIG) Shareholders • PR Newswire (US) • 02/03/2025 10:45:00 AM
- Transocean Ltd. Securities Fraud Class Action Lawsuit Pending: Contact The Gross Law Firm Before February 24, 2025 to Discuss Your Rights - RIG • PR Newswire (US) • 01/30/2025 10:45:00 AM
- Transocean Ltd. Announces Fourth Quarter, Full Year 2024 Earnings Release Date • GlobeNewswire Inc. • 01/28/2025 10:55:48 PM
- The Gross Law Firm Reminds Transocean Ltd. Investors of the Pending Class Action Lawsuit with a Lead Plaintiff Deadline of February 24, 2025 - RIG • PR Newswire (US) • 01/27/2025 10:45:00 AM
- Investors in Transocean Ltd. Should Contact The Gross Law Firm Before February 24, 2025 to Discuss Your Rights - RIG • PR Newswire (US) • 01/23/2025 10:45:00 AM
- The Gross Law Firm Announces the Filing of a Securities Class Action on Behalf of Transocean Ltd.(RIG) Shareholders • PR Newswire (US) • 01/20/2025 10:45:00 AM
- Transocean Ltd. Sued for Securities Law Violations - Contact The Gross Law Firm Before February 24, 2025 to Discuss Your Rights - RIG • PR Newswire (US) • 01/16/2025 10:45:00 AM
- Form 4 - Statement of changes in beneficial ownership of securities • Edgar (US Regulatory) • 01/14/2025 10:29:09 PM
- Contact The Gross Law Firm by February 24, 2025 Deadline to Join Class Action Against Transocean Ltd.(RIG) • PR Newswire (US) • 01/13/2025 10:45:00 AM
- Lost Money on Transocean Ltd.(RIG)? Join Class Action Suit Seeking Recovery - Contact The Gross Law Firm • PR Newswire (US) • 01/09/2025 10:45:00 AM
- Shareholders that lost money on Transocean Ltd.(RIG) should contact The Gross Law Firm about pending Class Action - RIG • PR Newswire (US) • 01/06/2025 10:45:00 AM
- Investors in Transocean Ltd. Should Contact The Gross Law Firm Before February 24, 2025 to Discuss Your Rights - RIG • PR Newswire (US) • 01/02/2025 06:30:00 PM
- Form 8-K - Current report • Edgar (US Regulatory) • 12/17/2024 09:42:38 PM
- Transocean Ltd. Announces $111 Million Ultra-Deepwater Drillship Contract • GlobeNewswire Inc. • 12/17/2024 09:37:22 PM
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