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URL:  https://boards.fool.com/the-somewhat-disturbing-thing-with-this-company-31267452.aspx

Subject:  Re: RIG dividend hike Date:  5/29/2014  8:24 AM
Author:  TMFBreakerRob Number:  1060 of 1287

The somewhat disturbing thing with this company, however, is that it is starting to go down the path of a more complex company structure. It's expected to IPO a MLP (Transocean Partners) next quarter and it's also thinking of forming a North Sea drilling company to hold the harsh environment rigs -- things that SeaDrill has recently done. And, it has ordered at least one rig on spec, without a contract behind it. In other words, management seems to be loosening things up a bit. I'm not sure I like these moves, but I just haven't had time to sit down and think about them yet. -- Jim

That's one of the things that creeps me out about SDRL. The complex structure (which I'd label as "financial engineering") seems to result in less transparency…. and certainly it's harder to figure out. I prefer the finances to be more on the simpler side.

Yes, sometimes I invest in stuff that has complex finances. I own SDRL and I own a bank.

Yes, that's inconsistent. :)

Rig upgrades? To be expected with a drilling company that's been around a while. Eventually, any deferrals catch up with you. Sometimes at inopportune times, such as might be the case as rates drop.

Thanks for your response.

Rob
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