Why Offshore Drilling Stocks Skyrocketed in the Last 3 Months



Equity screener

In this series, we’ll give you the tools to screen some key metrics for nine offshore drillers. It’s a starting point to help you figure out which offshore drilling stocks to long or short based on the current industry outlook. We’ll compare the key fundamentals you should look at when analyzing offshore drilling companies.

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Stock performance

In the last three months, the best performer in the offshore drilling (XLE) industry was Ocean Rig (ORIG). Below are the stock returns of ORIG and other offshore drilling (OIH) companies as of January 11, 2017, compared to their prices three months ago:

  • Diamond Offshore Drilling (DO): rose 11.3%
  • Noble (NE): rose 23.0%
  • Ensco (ESV): rose 39.0%
  • Transocean (RIG): rose 53.9%
  • Rowan Companies (RDC): rose 33.0%
  • Seadrill (SDRL): rose 29.0%
  • Seadrill Partners (SDLP): rose 21.0%
  • Ocean Rig (ORIG): rose 95.0%
  • Pacific Drilling (PACD): rose 20.0%

Offshore drilling companies at a glance

  • Seadrill (SDRL) is incorporated in Bermuda and operates from London. It has one of the youngest fleets of 69 rigs, comprised of drillships, jack-ups, semisubmersibles, and tender rigs.
  • Seadrill Partners’ (SDLP) parent company is Seadrill. Seadrill Partners operates a small fleet of 11 rigs, comprised of semisubmersibles, drillships, tender rigs, and barges.
  • Transocean (RIG) has one of the largest fleets in the offshore industry, with 62 rigs. It operates ultra-deepwater floaters, deepwater floaters, harsh environment floaters, midwater floaters, and high-specification jack-ups.
  • Ocean Rig (ORIG) is based in Greece and operates ten rigs, mainly drillships.
  • Rowan Companies (RDC) focuses on high-specification and premium jack-up drilling rigs and high specification ultra-deepwater drillships. It owns and operates a fleet of 32 offshore drilling units consisting of 28 jack-ups and four ultra-deepwater drillships.
  • Diamond Offshore Drilling (DO), a Texas company, owns one of the oldest fleets with 35 rigs. It has eight ultra-deepwater semisubmersibles, seven deepwater semisubmersibles, nine midwater semisubmersibles, five ultra-deepwater drillships, and six jack-ups.
  • Ensco (ESV), headquartered in London, operates a total fleet of 70 rigs, including 28 floaters and 42 jack-ups. It also provides services for third-party rigs.
  • Noble (NE) operates 17 ultra-deepwater floaters and 15 high-specification jack-ups.
  • Pacific Drilling (PACD) is an ultra-deepwater drilling contractor that operates seven rigs.

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