NEW YORK (TheStreet) -- Shares of Transocean (RIG) - Get Transocean Ltd. Report are falling 4.92% to $10.44 this morning as the company moves to buy back the master limited partnership it formed two years ago with Transocean Partners (RIGP) in a deal that values Transocean Partners at $514 million.
Transocean owns nearly 52% of Transocean Partners common stock, and in the deal the Swiss offshore driller will trade 1.14 of its shares for each unit of the master limited partnership.
Declining oil prices are also weighing on Transocean stock today. Crude oil (WTI) is down 2.96% to $40.37 per barrel and Brent crude is sliding 2.85% to $42.29 per barrel.
Oil is being led lower today by further concerns over a worldwide fuel glut.
Reuters data shows that production hikes in Nigeria and Iraq are leading to yet another increase in OPEC production, CNBC reports. A recent Reuters survey also shows that OPEC's July oil production likely reached its highest in recent history.
Last week, data from the Baker Hughes (BHI) weekly rig count revealed that U.S. drillers again added active rigs in the week ended July 22, bringing the count up by one to 463.
Separately, TheStreet Ratings objectively rated this stock according to its "risk-adjusted" total return prospect over a 12-month investment horizon. Not based on the news in any given day, the rating may differ from Jim Cramer's view or that of this articles's author.
TheStreet Ratings rated this stock as a "hold" with a ratings score of C-.
The company's strengths can be seen in multiple areas, such as its compelling growth in net income, largely solid financial position with reasonable debt levels by most measures and reasonable valuation levels. However, TheStreet Ratings finds that the stock has had a generally disappointing performance in the past year.
You can view the full analysis from the report here: RIG