Atwood Oceanics Inc
How Has Market Sentiment Changed for Noble?
Noble (NE) has a consensus “hold” recommendation based on ratings from 39 analysts covering the stock, according to Bloomberg.
The 2010 Gulf Oil Spill Tragedy and Its Aftermath across the Industry
The marine oil spill in April 2010 was the worst environmental disaster in US history, causing millions of barrels of oil gushed into the Gulf.
What Happened in September in the Offshore Drilling Space?
The offshore drilling industry experienced many events in the first half of September 2017. Seadrill (SDRL) filed for Chapter 11 bankruptcy.
How to Interpret Valuation Multiples in the Offshore Drilling Industry
Offshore drilling companies are capital-intensive and have varying degrees of financial leverage. Thus, we use the EV-to-EBITDA multiple as a valuation.
How Could Lower Production Impact Apache Corporation’s Revenues?
Excluding the effect of hedges, Apache Corporation’s (APA) average realized crude oil (USO) price in 4Q15 was $38.86 per barrel, down ~45% from $70.81 per barrel in 4Q14.
Transocean Secured New Contracts
As of July 25, 2017, Transocean (RIG) had a backlog of $10.2 billion—compared to $10.8 billion in April 2017.
Extracting the Basics: An Introduction to Offshore Drilling
Oil is one of the most important and most frequently traded commodities, and offshore drilling is an integral part of the oil industry.
Is the Customer the King in Offshore Drilling?
The bargaining power of offshore drilling customers is influenced by oil prices and utilization rates. When oil prices are high, rig capacity goes down.
US Crude Oil Rigs Rose the Most since June 2017
Baker Hughes released its weekly oil and gas rig count report on November 10. It estimated that US oil rig counts rose by nine to 738 on November 3–10.
Understanding Ensco’s Capital Expenditure Plans
In the first three months of 2017, Ensco saw cash flows from operations of $104 million, as compared to $233 million in 1Q16.
US Crude Oil Prices Could Pressure Natural Gas Futures
Baker Hughes is scheduled to release its US crude oil and natural gas rig count report on November 11, 2017.
Inside Transocean’s Outlook after 1Q16
Transocean does not expect to see a recovery in rig activity before 2017 as customer budgets have been set for 2016 and are unlikely to improve soon.
Improper Stacking Can Weigh Negatively on Noble Corporation
Cold-stacking rigs reduces costs much more than warm-stacking them. Noble Corporation (NE) seems to be quite reluctant to cold-stack its idle rigs.
Noble: Floaters Suffered More than Jack-Ups for the First Time
For Noble Corporation, 63% of total revenue comes from ultra-deepwater floaters. Also, 16% of revenue comes from deepwater floaters and 21% from jack-ups.
Seadrill Stock Rose 20% despite Bankruptcy
Seadrill (SDRL) stock closed at $0.28 on September 13, 2017. The stock rose more than 20% in a single day.
US Natural Gas Rig Count: More Concerns for the Bulls?
On August 4, Baker Hughes will release its weekly US natural gas rig count report. The US natural gas rig count rose by six to 192 rigs on July 21–28, 2017.
Is Ensco Still Committed to ATW Acquisition despite Price Drops?
On May 30, 2017, Ensco (ESV) announced its plan to acquire Atwood Oceanics (ATW) in an all-stock transaction.
Behind Seadrill’s Cost-Cutting Measures
From 4Q16 and 1Q17, Seadrill’s (SDRL) vessel operating expenses fell $23 million to $211 million—a 10% fall.
Where Does Seadrill’s Backlog Stand amid the Current Downturn?
On May 24, 2017, Seadrill (SDRL) had a backlog of $3.4 billion, which is higher than its backlog of $2.5 billion on February 28.
Seadrill Has the Most ‘Sell’ Ratings among Its Peers
In this part of the series, we’ll compare Wall Street analysts’ consensus ratings for the offshore drilling companies we’ve been analyzing.
Analysts’ Take on Noble Energy’s 4Q16 Results
Noble Energy (NE) is scheduled to release its 4Q16 results after the market closes on February 9, 2017. A conference call will follow on February 10, 2017.
What You Should Know about Ensco’s New Blend-and-Extend Contracts
As of June 30, 2016, Ensco (ESV) had a total 2Q16 backlog of $4.1 billion compared to $5.2 billion at the end of 1Q16.
Is More Rig Scrapping in Store for Diamond Offshore?
Diamond Offshore Drilling cold stacked one rig in 1Q16. This brings the company’s total cold stacked rigs to 15%–50% of the total fleet.
Why Barclays Downgraded ATW and ESV
On March 28, 2016, Barclays downgraded offshore drilling companies Atwood Oceanics (ATW) and Ensco (ESV).
What Measures Is Transocean Taking to Preserve Cash?
Transocean leads the industry in rig scrapping. It has scrapped 24 rigs since the oil industry downturn began.
Understanding the Fight between Offshore Drillers and Lower Utilization Rates
Utilization rates are calculated as the ratio of working rigs to the number of available rigs. A fall in rig count negatively impacts utilization rate.
How Oil Prices and Rig Count Go Hand in Hand
Oil prices and rig count have exhibited a positive relationship. When oil prices increase, the demand for drilling and so the rig count increases.
Measuring the Double-Edged Sword of High Leverage in Offshore Drilling
High leverage in offshore drilling can be either good or bad, depending upon the revenues of the company in question.
How Geography and Climate Impact Offshore Oil Rig Choices
The majority of offshore operations occur in six key locations worldwide that differ widely in terms of water depth, weather conditions, and remoteness.
Why the Offshore Drilling Process Is so Complex and Costly
The offshore drilling process requires complex machinery and large crews. At every stage, things that can go wrong, so each stage requires special care.
Atwood Oceanics Postpones Delivery of Drillships
On December 18, Atwood Oceanics (ATW) announced its agreement to delay the delivery of its two newbuild ultra-deepwater drillships, the Atwood Admiral and the Atwood Archer.
Ocean Rig Plans Capex of $329 Million for 2016
Ocean Rig has a planned capex of $329 million for 2016, and going forward in 2017 this will increase to $468 million.
A Closer Look At Pacific Drilling’s Backlog and Contracts
As of August 2015, Pacific Drilling had a total backlog of $1.9 billion, compared to its backlog of $2.1 billion at the end of May 2015.
Pacific Drilling in 2015: Worst Case Scenario amid Imbalanced Industry
As of October 15, 2015, Pacific Drilling has been eating through its backlog without replacing them with new contracts. But its stock has risen by 26%.
Will Rowan Continue to Stack and Scrap Rigs?
When a company chooses to scrap rigs, it reduces its costs, but it also reduces its fleet size and therefore its earning potential.
A Deeper Look into Seadrill’s Backlog
Seadrill has a backlog of $7.54 billion on its record, far less compared to $13.6 billion in the same period last year.
Noble Corporation’s Backlog
Noble Corporation has a total backlog of $8,689 million compared to $9,425 million at the end of the previous quarter.
What Do Noble Corporation’s Results Tell Us about the Industry
In 2Q15, offshore drilling contractor Noble Corporation (NE) beat market estimates for EBITDA as well as revenue.