MDR - McDermott International: Small Short-Term Spending Increases Should Not Overshadow The Long-Term Value Creation
NOTE: Any reference to guidance is to the midpoint of the guidance range.
On April 29, McDermott International (NYSE:MDR) reported 1Q19 earnings. As we had previously forecasted, no new changes to cost estimates were reported at legacy CBI projects. Repeated cost estimate announcements over the past year had been a recurring theme and mainly responsible for the negative sentiment towards the stock since the merger was announced. Now however, the Calpine project is substantially complete, and the last two remaining projects, Cameron and Freeport, are inching their way towards completion (at 90%