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How Did Offshore Drilling Perform in December?

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Updated

Positive territory

December 2016 is proving to be a good month for offshore drilling investors. All offshore drilling stocks were trading in positive territory on December 29, 2016, with their prices improving since the start of the month.

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Stock performance of offshore drillers

Offshore drillers’ (XLE) one-month stock returns on December 29, 2016, were as follows:

  • Pacific Drilling (PACD) rose 12.4%
  • Transocean (RIG) rose 30%
  • Atwood Oceanics (ATW) rose 59%
  • Noble (NE) rose 8%
  • Ensco (ESV) rose 19%
  • Rowan Companies (RDC) rose 19%
  • Seadrill (SDRL) rose 44%
  • Diamond Offshore (DO) rose 6%
  • Ocean Rig (ORIG) rose 15%

Series focus

Offshore driller stocks have risen significantly in December 2016. It’s important to see whether the underlying fundamentals of the industry have changed. In this series, we’ll analyze indicators that you can track to get a sense of the offshore industry’s direction.

We’ll look at how oil prices rose after the OPEC deal and how this increase could affect the offshore drilling industry. We’ll analyze drilling permits for the Gulf of Mexico, and we’ll look at changes in analyst recommendations and changes in credit ratings for offshore drilling companies. We’ll also take a look at recent contracts to get a sense where the industry is heading.

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