Facebook’s stock reached an all-time high of $103.56 on October 26 and is expected to achieve a price target of $125.
In this industry downturn, it’s important to determine whether Ocean Rig is in any position to pay off its short-term and long-term debt.
Currently, Ocean Rig has three newbuilds under construction. The expected delivery for Santorini was 2Q16, and the company was in talks to postpone delivery.
Offshore drilling companies are better valued and compared using EV/EBITDA. As we have seen in the previous articles, Ocean Rig is highly leveraged.
Cold-stacked rigs reduce expenses during a downturn. Amid a lack of rig demand, companies are forced to scrap rigs despite lower scrap steel values.
In 2Q15, Ocean Rig achieved an EBITDA margin of 61%. Analysts estimate its EBITDA in 2016 to be $787 million, and its EBITDA in 2017 to be $641 million.
Ocean Rig Olympia started operations in August 2015, while Ocean Rig Skyros started on October 1. Expenses related to the rigs have raised expense estimates.
Backlog is a helpful indicator of future revenue. As of August 2015, Ocean Rig had a total backlog of $4.3 billion, compared to $4.7 billion at the end of May.
Wall Street analysts estimate $436 million in 3Q15 revenue for Ocean Rig, close to the $433 million earned in 2Q15. Projected revenue for 2016 is $1.5 billion.
Ocean Rig will announce its 3Q15 earnings result on November 4, 2015. Wall Street analysts estimated the company’s 3Q15 EBITDA to be $240 million.
Potash Corporation is currently trading at an EV/EBITDA multiple of 7.5x—its lowest point, according to the chart above.
Analysts are estimating Potash Corporation’s 3Q15 potash shipments to be about 2.5 million metric tons.
Because of weak crop prices, the demand for fertilizers has also taken a hit in 2015. This sets the stage for a dull 3Q15 earnings result for Potash Corporation.
Potash Corporation (POT) is expected to release its earnings tomorrow, October 29, before the market opens. One of the largest producers of potash-based fertilizers, Potash Corporation has fallen 39% YTD.
Archer Daniels planned its acquisition of Eatem Foods with the intention of accelerating its evolution from an ingredient supplier to a solutions provider.
Archer Daniels Midland reported $0.6 as EPS in 2Q15, missing the analyst estimates by 8%. It reported EPS at $0.77 in 1Q15, beating estimates by 8%.
Archer Daniels reported its second quarter results for fiscal 2015 in the first week of August, with net earnings of $386 million, or $0.62 per share.
Archer Daniels Midland reported a YTD return of -11.1%, while Cal-Maine and Pinnacle reported 35.2% and 24.4,% respectively, as on October 27.
Of the analysts surveyed by Bloomberg, 31.6% rated ONEOK Partners (OKS) a “buy,” 52.6% rated it a “hold,” and 15.8% rated it a “sell.” The consensus target price for ONEOK Partners is $36.90.
ONEOK Partners’ (OKS) forward distribution yield of 9.6% is 125 basis points higher than its peer average. It’s calculated as estimated distribution per share divided by market price per share.