Hi Paul -
ARCHER LTD (ARHVF.PK)
Seadrill Limited Ordinary Share(NYSE: SDRL )
Fredriksen expands his empire into well drilling and services through Archer and the acquisition of Great White Energy Services. Great White Energy Svs looks like a "pure play" for U.S. energy shale drilling in the Eagle Ford region. Today's buy by Seadrill (aka Fredriksen) gives them a 39.81% interest in Archer Ltd. The buy was done as a private placement by Seadrill and Archer Ltd.
Seadrill seals $80m in Archer shares
01 September 2011
upstreamonline.com
Rig owner Seadrill has upped its holding in well services player Archer after snapping up a raft of shares in a private placement.
Web site of well service companies:
Archer The Well Company: archerwell.com
Archer is the well company, a global oilfield service company specialising in drilling services and well services. We employ over 7,000 people unified by a single purpose: building better wells to help our customers produce more oil and gas.
Formed in 2011, Archer is the coming together of two well specialist companies, Seawell and Allis-Chalmers Energy, and several complementary businesses, each with a deep heritage in delivering wells and improving well performance.
Great White Energy Services: greatwhiteenergy.com
Great White Energy Services is a diversified oilfield service company that does completion and production, horizontal and directional drilling. Headquartered in Oklahoma City, Great White provides industry-leading pressure control service, directional drilling, and pressure pumping.
Pretty cool video explaining Great White Energy Services: greatwhiteenergy.com
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I recently started a position in Seadrill on 8/1/2011 and have my eye to buy more shares on any move below $30.00/share. I like their position in Archer Ltd (a 39% interest) and the services that Great White Energy provides. So you participate in the FCF that these service companies generate while earning a nice dividend from the parent company. Archer LTD is traded in the pink sheets but I saw no trades and suspect it is thinly traded. It looks like SDRL is a better one to accumulate and hold.
The value proposition for the combined companies is quite nice. You can buy all of them through SDRL at a Forward PE of 9. SDRL also has a good debt profile with LT debt to Annual net income at a 4.72:1 ratio, just outside the 4:1 ratio I like.
EKS |
