Summary
- Today, ENI announced that it has terminated the Ocean Rig Olympia due to "a dramatic fall" in the price of oil.
- Assuming an 85% termination fee, and based on 160 days remaining, ORIG should be entitled to receive a lump sum of approximately $90 million.
- ORIG is going to struggle in 2016, but should weather the storm. I believe the stock is oversold, however, as the risks are high as today's news shows.
