I took a 2000 share purchase of SDLP today. Got it for $2.61.
Currently pays $1 a year in dividend.
Maybe you should change your handle from Fermion to No Fear!
I took a 2000 share purchase of SDLP today. Got it for $2.61.
Currently pays $1 a year in dividend.
i couldn't care if they paid 2 bucks in dividends . it would only steepen their losses with each payout . boy the 1 year is down 66% in total return . you lost 1/3 of your money a year the last 3 years . it don't matter what you got in dividends that is your bottom line
SDLP has 91% contract coverage for 2016 and IIRC some 70% for 2017. They don't really start getting into trouble until 2019.
I guess if deep sea drilling is indeed over, but I bet it comes back eventually.
Better hope those contracts don't get cancelled or pushed out several years. No one is drilling offshore with oil at $30. There is just too much of it coming from onshore sources and easier to get. What will go on offshore is ongoing well and platform maintenance (re-completions, workovers, etc) as those wells are drilled and producing, or able to.
You can't just cancel a contract without some sort of concession. These are contracts with big players like Exxon and BP.
You think Exxon is preparing for BK?
All these contracts for drilling have cancellation clauses and penalties. I'm sure your investment was made with all that in mind. I still work part time in the business and have worked in the trade for 35 years. I also worked in a corporate engineering job at one of the top three Big Oil firms for several years. I am just stating the risks and reality of the situation.
What's your cost basis for AMLP ?
An unconventional play on the oil market: cowboy boots?
What cowboy boot sales are saying about oil prices
( August 2015) Time to review this the reality of commodity prices is starting to come home to some of these oil companies as their hedges are coming to an end, and virtually all of them are down 10% or more with BHP down 22%. Amazingly BHP has been using cash to increase dividend and pay down debt, which in about another year will all have to be undone or they will be in serious financial jepoardy.
XOM is starting to get nearer to the 70-75 where they might be a buy, smartest guy in the investment room and look at a chart of XOM and you can see where Warren Buffet sold this year. Chevron and COP have been equally poor this year.
On the 25th BHP will be having an investor first half in review, I look forward to listening to that, I presume Wolfman Jack will be their presenter.