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.
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.
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.
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 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 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 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%.
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.
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.
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.
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.
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.
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.
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.
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.
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.
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%.
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.
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.
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.
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.
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.
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.
After Ocean Rig (ORIG) released its first quarter results on May 20, 2016, the stock rallied to $2.20 from its previous day’s close of $1.80, a 22% rise in one day.
Baker Hughes released its weekly US crude oil rig count report on April 22. The US crude oil rig count fell by eight to 343 rigs between April 15 and April 22.
The utilization rate is an important indicator to gauge demand and activity in the offshore drilling industry. The utilization rate for drillships fell to 73.3% in February 2016, compared to 73.9% in January.
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.
Offshore drilling companies are capital-intensive and have varying degrees of financial leverage. Thus, we use the EV-to-EBITDA multiple as a valuation.
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.
The majority of offshore operations occur in six key locations worldwide that differ widely in terms of water depth, weather conditions, and remoteness.
Jack-ups, followed by semisubmersibles, drill most of the existing offshore wells today, and drillships come in third place in terms of rigs in operation.
The offshore drilling process requires complex machinery and large crews. At every stage, things that can go wrong, so each stage requires special care.
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.
