Why Teekay Corporation, California Resources Corp, and Seadrill Partners LLC Were All Crushed This Week презентация

All Crushed This Week

which have renewed their slide in recent weeks. This weakness is really starting to spill over into the credit market, making it tougher for energy companies to get funding. These credit worries are weighing down energy stocks that either rely on debt as a key funding source, or have a lot of it on their balance sheet. That was clear by looking closer at the three most beaten down energy stocks this week, which according to S&P Capital IQ data, were Seadrill Partners (NYSE: SDLP), California Resources Corp (NYSE: CRC), and Teekay Corporation (NYSE: TK). 

week.

to market pressure, the offshore driller reduced its distribution despite more than adequate coverage

financial flexibility
Key takeaway: Investors actually cheered the move after it was announced, but even with that rally shares are down substantially over the past few weeks, suggesting its troubles are far from over

26% this week.

$2.8 billion of its old notes for new second lien notes
The exchange reduced its principal amount by $563 million

by $21 million due to the higher rate on the new notes
Key takeaway: The company still has a lot of debt left to address, but doesn’t see any more moves this year due to the renewed weakness in commodity prices

announced significant distribution cuts
The companies said they plan to use the cash to invest in growth projects and reduce debt

downgrades
Key takeaway: Investors see the steepness of the cuts suggesting that it was getting difficult for the Teekay companies to get funding by the market