Traders Recap: Marathon Oil Corporation (NYSE:MRO), Seadrill Ltd (NYSE:SDRL)

On Wednesday, Shares of Marathon Oil Corporation (NYSE:MRO), subtract -0.89% and closed at $15.56 in the last trading session. The last trading range of the stock ranges between $15.35 and $15.93. Marathon Oil Corporation operates as an energy company. It operates through three segments: North America E&P, International E&P, and Oil Sands Mining. The North America E&P segment develops, explores for, produces, and markets crude oil and condensate, natural gas liquids, and natural gas in North America. The International Exploration and Production segment explores for, produces, and markets crude oil and condensate, natural gas liquids, and natural gas in Equatorial Guinea, Gabon, the Kurdistan Region of Iraq, Libya, and the United Kingdom; and produces and markets products manufactured from natural gas, such as liquefied natural gas and methanol in Equatorial Guinea. The Oil Sands Mining segment mines, extracts, and transports bitumen from oil sands deposits in Alberta and Canada; and upgrades the bitumen to produce and market synthetic crude oil and vacuum gas oil. As of December 31, 2015, it had rights to take part in developed and undeveloped leases totaling about 32,000 net acres.

Seadrill Ltd (NYSE:SDRL), closed at $2.29 in the last trading session. The last trading range of the stock ranges between $2.22 and $2.39. The company’s Market capitalization is $1.21 Billion with the total Outstanding Shares of 508.76 Million. Seadrill Limited (“Seadrill or the Company”) declares recently that it has reached a contract with 100% of the lenders under the West Eminence Facility and the requisite majority of lenders under all of its other bank facilities to extend the West Eminence facility maturity date from December 31, 2016 to April 30, 2017.

Good progress has been made on the overall terms and structure of a contract with our banks that will re-profile all secured credit facilities to mature in the period from 2020 to 2023, reduce our fixed amortization obligations and amend financial covenants.  We have initiated engagement with bondholders and potential providers of new capital on the other key elements of our restructuring plan.

We now expect to conclude the restructuring by the end of April 2017. Extending the West Eminence facility will provide us with sufficient time to conclude these negotiations.

The Company has retained Morgan Stanley and Houlihan Lokey as financial advisors and Slaughter & May and Kirkland & Ellis as legal counsel.

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