Atwood Oceanics Inc

Ensco’s (ESV) drilling expenses were $325 million in the first quarter—up from $278 million in the first quarter of 2017.

US gas rigs are at the highest level since October 20, 2017. Meanwhile, crude oil (USL) (DBO) prices are at a 30-month high.

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.

Baker Hughes is scheduled to release its US crude oil and natural gas rig count report on November 11, 2017.

Cash flow Operating cash flow represents cash flow from a company’s core operations. In 3Q17, Transocean’s (RIG) cash flow from operations rose to $384 million from $319 million in the previous quarter. Capital expenditure Transocean’s capex stood at $128 million in 3Q17. The expenditure was mainly related to the company’s contracted newbuild drillships. In 2Q17, its capex was $136 million. In […]

On November 3, 2017, Baker Hughes published the US oil rig count report. It estimated that US oil rigs fell by eight to 729 on October 27–November 3, 2017.

For the first nine months of 2017, Diamond Offshore incurred $100 million in capex (capital expenditure), mainly related to rig equipment and replacements.

Ensco (ESV) released its quarterly fleet status report on October 19, 2017, its first fleet report since it acquired Atwood Oceanics (ATW).

Baker Hughes released its weekly US crude oil rig count report on October 6. The US crude oil rig count fell by two to 748 on September 29–October 6, 2017.

In the week ending September 29, 2017, almost all of the offshore drilling stocks traded in the green.

On September 29, 2017, Baker Hughes (BHI) reported that the US crude oil rig count rose by six to 750 on September 22–29, 2017.

The fate of the offshore drilling industry is closely tied to oil prices.

On September 22, 2017, Baker Hughes will release its US natural gas rig count report. The US natural gas rig count fell by one to 186 on September 8–15.

Baker Hughes (BHI) released its weekly US crude oil rig count report on September 15. It reported that the US crude oil rig count fell by seven to 749 between September 8 and September 15.

The offshore drilling industry experienced many events in the first half of September 2017. Seadrill (SDRL) filed for Chapter 11 bankruptcy.

Seadrill (SDRL) stock closed at $0.28 on September 13, 2017. The stock rose more than 20% in a single day.

On September 8, energy services company Baker Hughes (BHI) released its weekly US crude oil rig count report.

Baker Hughes (BHI) released its US crude oil rig count report on August 25, 2017. Baker Hughes reported that the US crude oil rig count fell by four or 0.5% to 759 between August 18 and August 25.

Baker Hughes released its US natural gas rig count report on August 25, 2017. The US natural gas rig count fell by two to 180 on August 18–25, 2017.

Baker Hughes released its US crude oil rig count report on August 18, 2017. It reported that the US crude oil rig count fell by five to 763 on August 11–18.

Seadrill (SDRL) plans to release its 2Q17 results on August 24. In 1Q17, Seadrill’s revenues totaled $569 million, nearly 14.6% lower than its 4Q16 revenues of $667 million.

Atwood Oceanics has secured a one-well contract extension on its ultra-deepwater rig Atwood Achiever.

Seadrill Partners will resume its dividend payments. It declared a quarterly cash dividend of $0.10 per share for the first and second quarter.

Seadrill Partners (SDLP) stock closed at $3.15 on August 17, 2017. The stock rose 17.9% in one day, which brought its YTD (year-to-date) return to -25%.

As of July 25, 2017, Transocean (RIG) had a backlog of $10.2 billion—compared to $10.8 billion in April 2017.

Transocean’s long-term view of the offshore drilling market, especially for the high-specification floaters, is positive.

Transocean’s (RIG) revenue exceeded analysts’ revenue estimates by 0.5% in the second quarter. However, it missed the earnings estimate.

Baker Hughes released its weekly US crude oil rig count report on August 4, 2017. The US crude oil rig count fell by one to 765 on July 28–August 4, 2017.

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.

On May 30, 2017, Ensco (ESV) announced its plan to acquire Atwood Oceanics (ATW) in an all-stock transaction.

Ensco’s (ESV) drilling expenses were $291 million in 2Q17, down from $350 million in 2Q16 but higher than the previous quarter’s $278 million.

The consensus 12-month target price for Rowan Companies is $14.59, which implies a potential upside of 25.6% from the market price of $11.6 on July 28, 2017.

Wall Street analysts expect revenue of just over $380 million for Diamond Offshore Drilling in 2Q17. This revenue would represent a 1.6% rise from DO’s revenue of $374 million in 1Q17.

Of the 28 analysts covering Ensco, three analysts gave “strong buy” recommendations, while eight analysts gave “buy” recommendations.

According to Reuters, 23 analysts give recommendations on Atwood Oceanics. The stock has a consensus rating of three, which indicates a “hold.”

Since 2016, all offshore drilling stocks have been hit hard. In this series, we’ll compare the offshore drillers’ backlogs to see which companies could experience the maximum and minimum revenue falls in 2017 and 2018.

Noble’s (NE) target price was cut to $4 from $5. The stock’s closing price that day was $3.89. The revised target price implies a potential upside of 10.8%.

The land rig count is 128.0% or 510 higher than the rig count in the same period last year.

Baker Hughes (BHI) reported that the US crude oil rig count rose by 11 to 758 on June 16–23, 2017. Rigs rose 1.5% week-over-week and 129.8% year-over-year.

Analysts had mixed reactions to the offshore drilling industry’s first merger since the downturn started.

Last week Ensco (ESV) announced its decision to acquire Atwood Oceanics (ATW) in an all-equity transaction.

Most offshore drillers released their first quarter earnings in May.

Baker Hughes released its weekly US crude oil rig count report on June 2. US crude oil rig counts rose by 11 to 733 between May 26, 2017, and June 2, 2017.

In 2Q16, Seadrill Partners cut its quarterly dividends to $0.10 per share—equivalent to an annual distribution of $0.40.

Seadrill Partners’ (SDLP) vessel and rig operating expenses fell 10% to $75.8 million in 1Q17—compared to $84.3 million in 4Q16.

From 4Q16 and 1Q17, Seadrill’s (SDRL) vessel operating expenses fell $23 million to $211 million—a 10% fall.

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.

For Seadrill, two analysts recommended a “buy” and two recommended a “hold.” Five analysts recommended a “sell” and one recommended a “strong sell.”

Seadrill’s (SDRL) stock price fell more than 84% from the beginning of 2017 to May 18, 2017. The stock fell more than other offshore drillers.

Seadrill will release its 1Q17 results on May 24. In 4Q16, Seadrill’s revenue was $667 million—nearly 10% lower than revenue of $743 million in 3Q16.

On March 31, 2017, Atwood Oceanics (ATW) had a backlog of $400 million, which was ~60% lower than the $1 billion it reported on March 31, 2016.

Ensco’s (ESV) drilling expenses fell to $278 million in 1Q17, down from $289 million in 4Q16 and $364 million in 1Q16.

In the first three months of 2017, Ensco saw cash flows from operations of $104 million, as compared to $233 million in 1Q16.

Baker Hughes (BHI) released its weekly US crude oil rig count on April 28, 2017. It reported that crude oil rigs rose by nine to 697 on April 21–28, 2017.

Of these 36 analysts, one analyst gave Transocean (RIG) a “strong buy,” six analysts gave a “buy” recommendation, and 15 analysts recommended a “hold.”

Of the 35 analysts covering Ensco (ESV), three analysts gave “strong buy” recommendations, while eight analysts gave “buy” recommendations.

Baker Hughes (BHI) will release its weekly US natural gas rig count report on April 21, 2017. The rig count fell by three to 162 rigs on April 7–14, 2017.

From March 24–31, 2017, the natural gas rig count rose by five to 160 rigs. It was its highest level since December 31, 2015.

Offshore drilling (IYE) (OIH) companies are cyclical and volatile in nature. They’re also capital-intensive, with high levels of depreciation and amortization, and their financial leverages vary.

In this part of the series, we’ll compare Wall Street analysts’ consensus ratings for the offshore drilling companies we’ve been analyzing.

Baker Hughes reported that the US crude oil rig count rose by 21 to 652 rigs from March 17–24. The oil rig count has risen 35 times in the last 38 weeks.

After the news of the sale of Transocean’s (RIG) jack-up fleet broke on March 20, RIG stock closed at $12.22—2% lower than the previous day’s closing price.

Baker Hughes reported that the US crude oil rig count rose by 14 to 631 rigs from March 10–17. The rig count has risen 34 times in the last 37 weeks.

The US crude oil rig count rose by eight to 617 rigs from March 3–10, 2017. The US crude oil rig count has risen 33 times in the last 36 weeks.

Conference call insights In this article, we’ll examine Seadrill’s (SDRL) 4Q16 conference call insights on current developments in the offshore drilling (OIH) space. In the call, the company expanded on its view of the industry’s future. Studying these developments can help us gauge the future of Seadrill, its parent company, Seadrill Limited (SDRL), and peers Diamond Offshore Drilling (DO), […]

Rowan Companies and Saudi Aramco entered into a 50-50 joint venture. The joint venture will own, operate, and manage offshore drilling rigs in Saudi Arabia.

Rowan Companies shared its outlook for the offshore drilling market. Its view could also shed some light on the outlook for its offshore peers.

Analysts have a 12-month price target of $0.78 for Ocean Rig (ORIG), compared to the current price of $0.78 on February 24, 2017. It implies a potential downside of 0.1%.

As of February, 2017, Transocean (RIG) had a backlog of $11.3 billion compared with $12.2 billion at the end of 3Q16.

In its 4Q16 conference call, Transocean (RIG) shared its outlook for the offshore drilling market.

Fleet status report Transocean (RIG) released its quarterly fleet status update on February 9, 2017. Transocean’s backlog was $11.3 billion, compared with $12.2 billion in its October fleet status report. In this article, we’ll take a look at contract updates between these two report dates. Contract updates On December 31, 2016, Transocean’s newbuild ultra-deepwater drillship, […]

Noble Corporation’s (NE) contract drilling revenue was $401 million in 4Q16. This total included a $16 million contract termination lump sum settlement.

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.

For the week ending January 20, 2017, the US offshore rig count fell by one from the previous week to 24, while land-based rigs rose by 36 units to 670.

Wall Street analysts expect revenue of just over $358 million for Diamond Offshore Drilling (DO) in 4Q16. This revenue would represent a rise from DO’s 3Q16 revenue

Offshore drilling (IYE) companies are capital-intensive, so it’s important to look at their financial leverages.

The offshore drilling industry has had low day rates and few or no new drilling contracts in the past year. Companies are alive mostly due to their earlier contracts.

In December, RBC downgraded Atwood Oceanics (ATW) from “sector perform” to “underperform.” It raised the target price from $10 to $15.

Offshore driller stocks have risen significantly in December 2016. In this series, we’ll see how oil prices rose after the OPEC deal and how this increase could affect the offshore drilling industry.

On December 29, 2016, Seadrill (SDRL) announced that it has secured a three-year contract extension from Saudi Aramco for its jackup AOD III.

The US natural gas rig count rose by two to 118 rigs between November 18 and November 23, 2016.

In 3Q16, Seadrill (SDRL) had cash flow from operations of $242 million, 20% lower than the previous quarter’s $303 million.

Contract backlog On September 30, 2016, Atwood Oceanics (ATW) had a backlog of $0.8 billion, ~50% less than the $1.6 billion reported a year ago. Knowing a drilling company’s backlog helps us to gauge its maximum revenue based on its current contracts. Backlog for 2017–18 The backlog for fiscal 2017 stands at $431 million, which […]

Atwood Oceanics earns revenue by operating floating rigs and jack-up rigs. Its fiscal 4Q16 revenue was $189 million, a fall of almost 17% from the $228 million reported in 3Q16.

After Pacific Drilling released its 3Q16 earnings, no Wall Street analysts either upgraded or downgraded its stock, unlike Diamond Offshore and Rowan Companies.

Pacific Drilling’s (PACD) operating expense-to-revenue ratio stood at 37.5% at the end of 3Q16, similar to the previous quarter’s 37.3% and 3Q15’s 37.7%.

Rowan’s adjusted revenue fell to $379 million in 3Q16 from $485 million in 2Q16.

Of the 36 analysts covering Ensco (ESV), 14% have given it a “buy” recommendation, 58% have given it a “hold” recommendation, and 28% have given it a “sell” recommendation.

Analysts estimate revenues of ~$362 million for Diamond Offshore in 3Q16, as compared to revenues of $388 million in 2Q16 and $634 million in 3Q15.

Noble’s capex requirement for 3Q16 is high with the delivery of its newbuild. So analysts expect free cash flow to be -$376 million in 3Q16.

Since the start of October, oil prices have remained above $50 per barrel. In this series, we’ll analyze indicators that you can track to get a sense of the offshore industry’s direction.

Of the 34 analysts covering Diamond Offshore, two analysts gave it a “buy” recommendation, 18 analysts gave it a “hold,” and 14 analysts gave it a “sell.”

Ensco’s backlog In 2Q16, Ensco’s (ESV) blend-and-extend agreements with its customers helped add some revenue backlog for the company. However, these additions aren’t sufficient to recoup the utilized backlog in the second quarter. On June 30, 2016, Ensco (ESV) had a total backlog of $4.1 billion compared to $5.2 billion at the end of 1Q16. Ensco’s backlog-to-trailing-12-month-revenue ratio […]

The offshore drilling industry works on contracts that range from a few months to years. The contracts specify the timeframe and day rate awarded to a rig.

In an industry downturn, especially like the one offshore drillers are experiencing right now, it’s crucial to have a high backlog.

Recent updates EVA Dimensions upgraded Diamond Offshore (DO) to “overweight” from “hold” on September 13, 2016. Scotia Howard initiated coverage on Diamond Offshore on September 14. It gave a “sector perform” rating and a target price of $17. Scotia Howard also initiated coverage on offshore drillers (OIH) Rowan (RDC), Atwood Oceanics (ATW), Transocean (RIG), and […]

The offshore oil and gas lease rights auction for the Gulf of Mexico wasn’t successful. Low interest in the sale highlighted the poor condition of offshore drilling.

August didn’t bring any good news for the offshore drilling industry. All stocks had negative returns, and no company predicted a turnaround, at least in the near term.

Ocean Rig (ORIG) recorded general and administrative expenses of $26.9 million in 2Q16, as compared to $19 million in 1Q16.

In spite of a fall in revenue, Transocean’s drilling-to-revenue ratio fell to 54% in the second quarter from 60% in the first quarter.