Noble Corp PLC
Seadrill Partners: Analyst Recommendations and Valuation
Of the five analysts surveyed, 20% recommended a “buy” for Seadrill Partners, 60% recommended a “hold,” and 20% offered a “sell” recommendation.
Analysts Drop Seadrill Partners from Coverage
On February 2, 2017, Morgan Stanley upgraded Seadrill Partners (SDLP) and raised its target price to $8 from $7.
What to Expect from Transocean’s 1Q17 Results
Transocean (RIG) plans to release its 1Q17 results on May 3, 2017, after the market closes.
Pacific Drilling’s Covenants Are Giving It a Hard Time
Pacific Drilling’s (PACD) cash flow from operations was $40.0 million in 4Q16 compared to $59.0 million in 4Q15.
Transocean: Aggressive in Rig Scrapping and Expansion
Many offshore drillers have scrapped their older rigs to reduce costs. Although scrapping rigs reduces costs, it also negatively impacts the earnings potential of the company.
Top Energy Losses Last Week
On June 8–15, Whiting Petroleum (WLL) and California Resources (CRC) fell the most on our list of energy stocks.
Noble Corporation: Optimistic about Offshore Drilling Outlook
Noble Corporation’s (NE) contract drilling revenue was $354.0 million in 1Q17 compared to $591.0 million in the same period last year.
Seadrill’s 1Q17 Results: What Can Investors Expect?
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.
Wall Street’s Forecasts for Transocean after 4Q15 Earnings
Now that Transocean has released its 4Q15 earnings, a whopping 56% of analysts have recommended a “sell.”
US Crude Oil Rig Count Hit Lowest Levels since 1940s: What’s Next?
The US crude oil rig count fell by ten to 362 rigs for the week ending April 1, 2016, which is the lowest level since the 1940s.
Short Interest: Analyzing How It Impacts OFS Stocks
Tidewater’s (TDW) short interest-to-equity float ratio is 40.1%—the highest among the OFS stocks that are part of the VanEck Vectors Oil Services ETF (OIH).
US Crude Oil Rigs Are Steady at March 2015 High
Baker Hughes reported that US crude oil rigs were flat at 863 on July 6–13. The rigs have risen by 98 or ~12.8% year-over-year.
A Look at Transocean’s Top Line in 3Q17
Transocean’s top line In 3Q17, Transocean’s (RIG) drilling revenue was $699 million, just 0.8% lower than its revenue of $705 million in the previous quarter, and 21% lower than the $886 million seen in 3Q16. Revenue sources Transocean earns its revenue mainly through floaters. The company sold its jack-up fleet to Borr Drilling in March 2017. […]
Why Citi Group Downgraded Diamond Offshore to a ‘Sell’
Diamond Offshore (DO) closed at $14.47 on October 12. Over the last month, DO’s stock has had a good run with a 16.3% return.
Seadrill Stock Rose 98% in Week 20
The offshore drilling industry made headlines last week, especially Seadrill (SDRL), which reached a 52-week high of $0.73.
No Drilling Permits in the Gulf of Mexico in May
In May, no drilling permits were issued in the shallow waters of the Gulf of Mexico. In the first five months of 2018, only two were issued.
Understanding Atwood Oceanics’ Future Revenues Through Backlog
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.
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.
Recent Analyst Changes in Ensco’s Recommendations
Of the 28 analysts covering Ensco, three analysts gave “strong buy” recommendations, while eight analysts gave “buy” recommendations.
Transocean Falls 22% YTD—What Analysts Have to Say
Of these 36 analysts, one analyst gave Transocean (RIG) a “strong buy,” six analysts gave a “buy” recommendation, and 15 analysts recommended a “hold.”
Prepping for Noble Corporation’s 2Q17 Results
Noble Corporation plans to release its 2Q17 results on August 3, 2017, after the markets close. It will have a conference call on August 4, 2017.
Key Takeaways from Diamond’s 3Q15 Earnings and Conference Call
Diamond Offshore Drilling’s (DO) stock showed a 5% rise as of November 5, 2015, after the company released its 3Q15 earnings on November 2.
What’s Noble’s Debt Situation Look Like after 1Q16?
For the next five years, Noble needs to pay around $200 million–$300 million in debt every year. Then, the repayment for each year rises to around $400 million or more.
What Analysts Project for Ensco’s Revenue and EBITDA in 3Q17
Ensco’s (ESV) estimated $457 million in revenues in 3Q17 would be a 16.6% fall year-over-year, similar to 2Q17 revenue of $457 million.
Offshore Drillers: Analyzing Target Price Revisions
Wells Fargo raised the target price for Transocean (RIG) to $11 from $9.5. Simmons and Cowen and Company raised Transocean’s target price to $11.
Seadrill Makes an Important Announcement Before Its 2Q17 Results
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.
How Offshore Drilling Stocks Performed Last Week
Most offshore drilling stocks traded in the green in the week ended July 13. The best performer during the week was Noble.
Estimates and Recommendations for Ensco ahead of 1Q18 Earnings
Of the 32 analysts covering Ensco (ESV), 44% recommend a “buy” or equivalent for the stock.
Analysts Upgrades, Downgrades, and Other Changes for Offshore Drilling
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.”
Transocean Has Highest Backlog of Its Peers
In an industry downturn, especially like the one offshore drillers are experiencing right now, it’s crucial to have a high backlog.
Transocean and Atwood Were Best Performers among Peers Last Week
In the week ending September 29, 2017, almost all of the offshore drilling stocks traded in the green.
Bad News Continuesd for Offshore Drillers in August
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.
The Word on the Street: What Analysts Recommend for Transocean after 1Q16
Of the 38 analysts covering Transocean, 5% have given it a “buy” recommendation, while 32% have given it a “hold,” and 63% have recommended a “sell.”
A must-know investor’s guide to off-shore driller Noble Corp. (NE)
Noble Corporation Plc. (NE) is one of the largest off-shore oil drilling companies in the world, owning the second-largest fleet of Mobile Offshore Drilling Units (or MODUs) in the industry.
Ensco’s 4Q17 Earnings Compared to Transocean and Diamond Offshore
In 4Q17, Ensco’s EBITDA fell to $98.4 million from $149.5 million in 3Q17. The company’s EBITDA was 48% lower than its 4Q16 EBITDA of $190.0 million.
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.
Basic Material Stocks Top UK Stock Market, EWU Surges 2.31%
The UK private sector pay rose 4.4%, while the public sector rose 0.6%. This is anticipated to boost the consumer demand in the country.
Seadrill Stock Fell 32% in Week 21
Even after week 21’s fall in stock price, Seadrill still has a whopping 82.8% year-to-date return as of May 25.
Why Do These OFS Stocks Look Weak?
Diamond Offshore’s short-interest-to-equity float ratio is currently 40.7%—the highest among the OFS constituents of the VanEck Vectors Oil Services ETF (OIH).
What Do Transocean’s Capex and Liquidity Forecasts Tell Us?
In 1Q16, Transocean (RIG) had cash flow from operations of $631 million, which was lower than the $960 million it had in 4Q15.
Which Rig Type Has Been Performing Best for Transocean?
Transocean’s drilling revenue for 1Q16 was $1.34 billion, ~28% lower than the $1.85 billion in 4Q15 and 34% lower than the $2 billion in revenue in 1Q15.
Analyst Recommendations for Transocean before 4Q17 Results
Of the 34 analysts covering Transocean, 44% recommend a “buy” or some equivalent for the stock, while 32% recommend a “hold.”
Analyzing Utility Stocks with the Highest Implied Volatility
On February 22, NRG Energy (NRG) had the highest implied volatility among the utility companies that make up the Utilities Select Sector SPDR ETF (XLU).
A Look at Transocean’s Recent Contracts
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, […]
Atwood Oceanics, Noble Suffered the Most in This Area in 2Q16
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.
Oilfield Services Stocks Fell the Most in the Energy Sector
On November 30–December 7, Superior Energy Services (SPN) fell the most on our list of energy stocks.
Will US Crude Oil Rig Count Data Add Pessimism to the Market?
BHI is scheduled to release its weekly US crude oil rig count report on February 16. The crude oil rig count fell by 30 rigs for the week ending February 5, 2016.
Jefferies Revises Target Prices for Diamond Offshore, Noble
Article focus In this article, we’ll discuss analysts’ target price revisions for offshore drilling companies in Week 8 of 2018 (ended February 23). Revisions in Week 8 Jefferies revised its target prices for two offshore drillers. On February 21, 2018, it reduced the target price for Transocean (RIG) to $12 from 413 and maintained a […]
Will Crude Oil Futures and S&P 500 Move in the Same Direction?
February US crude oil (UWT) (USL) futures contracts rose 0.5% to $61.73 per barrel on January 8. Prices are near the highest level since December 2014.
Understanding the Demand Side of the Offshore Drilling Industry
Offshore drilling contracts are based on a well-to-well basis or on a fixed-period basis and are impacted by the demand and supply dynamics of the rigs.
Inside Rowan Companies’ 4Q17 Earnings Estimate
Analysts expect a fall in Rowan Companies’ (RDC) EBITDA (earnings before interest, tax, depreciation, and amortization).
Highlights from Ensco’s July Fleet Status Report
Ensco (ESV) released its quarterly fleet status report on July 19. Ensco 8503 secured a 100-day contract with Talos Energy in the US Gulf of Mexico.
Analyst Recommendations for Noble, Transocean, and Ensco
Approximately 29% of the analysts tracking Noble Corporation (NE) stock have recommended a “buy” or some equivalent as of December 13, 2017.
OFS Returns: The High Volatility Stocks
In the past five trading days, Tidewater stock has risen 15.9%—the highest rise among high implied volatility companies.
US Market Buoyant with Rise in Consumer Confidence
US consumer confidence rose unexpectedly for the month of September. The index rose to 103 in September from 101.3 in August.
How Analysts Reacted to Ensco’s Acquisition
Analysts had mixed reactions to the offshore drilling industry’s first merger since the downturn started.
Noble Beat Analysts’ Estimates in 3Q15
Noble released its 3Q15 earnings on October 28. Its 3Q15 EBITDA was recorded at $570 million. It beat Wall Street analysts’ consensus estimate of $398 million.
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.
Buoyant UK Stock Market Rose on Oil Price Rise
Russia’s meeting with Saudi Arabia regarding oil prices and its willingness to exchange views on the production and pricing strategy had a significant impact on oil prices this week.
Why These Oilfield Services Stocks Could Mean Trouble
High short interest in stocks such as Carbo Ceramics, Seadrill, and Noble could explain why they also have high implied volatilities.
Could These OFS Stocks Be a Concern for You?
CARBO Ceramics’ (CRR) short interest-to-equity float ratio is 28.6%—the highest among the OFS (oilfield equipment and services) stocks that are part of OIH.
Analysts Revised Target Prices for RIG, RDC, and NE
In the week ending November 10, 2017, analysts revised target prices for Transocean (RIG), Rowan Companies (RDC), and Noble (NE).
Wells Fargo Upgrades Rowan Companies to ‘Outperform’
RDC’s analyst recommendations Analysts’ consensus rating for Rowan (RDC) is 2.6, which means a “hold.” Peers Transocean (RIG), Diamond Offshore (DO), Noble (NE), and Ensco (ESV) also have “hold” ratings. Of the 31 analysts covering Rowan (RDC), 39% recommend “buy” or some equivalent, 55% recommend “hold,” and 6% recommend “sell.” Among the top offshore drilling stocks […]
Analysts Love Ensco: A Closer Look
In this series, we’ll discuss analysts’ ratings and recommendations for offshore drillers.
Ensco’s Expenses: Dissecting the Cost Side
Ensco’s (ESV) drilling expenses fell to $278 million in 1Q17, down from $289 million in 4Q16 and $364 million in 1Q16.
Sharp Fall in Crude Oil Pulled UK Inflation Down to 0
The ONS stated on Tuesday, September 15, that the annual inflation rate fell back to zero in August. The lower fuel prices are one of the reasons behind it.
How Did Rowan’s Top Line Perform in 2Q16?
Rowan’s jack-up revenue in 2Q16 fell to $264 million, from $272 million in 1Q16. Its jack-up fleet had 108 higher operating days, but the average day rate declined.
What Factors Could Affect Seadrill Partners’ 1Q18 Revenue?
In 4Q17, Seadrill Partners’ (SDLP) total operating revenue fell to $256 million from $276 million in 3Q17.
Seadrill: Investors and Analysts Wave Goodbye
According to Reuters, two analysts recommended a “buy,” five analysts recommended a “sell,” and one analyst recommended a “strong sell” for Seadrill.
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.
Changes in Analyst Recommendations for Offshore Drillers
In December, RBC downgraded Atwood Oceanics (ATW) from “sector perform” to “underperform.” It raised the target price from $10 to $15.
As Noble Takes Delivery of Newbuild, What About Free Cash Flow?
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.
What’s behind Oilfield Services Stocks’ High Implied Volatilities?
Tidewater has fallen 31.7% in the past year. It has the highest implied volatility of all the oilfield services companies that make up OIH.
Analyst Estimates for Seadrill’s 3Q16 Earnings
Earnings estimates As we saw in the previous part, Wall Street analysts estimate Seadrill’s 3Q16 revenue will be 17% lower than the previous quarter’s revenue. However, analysts expect a 30% drop in its 3Q16 EBITDA (earnings before interest, tax, depreciation, and amortization). Analysts estimate Seadrill’s EBITDA will be $392 million in 3Q16, compared with $557 […]
How Did Offshore Drilling Perform in December?
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.
Week 1: Offshore Drilling Investors Rejoice as Oil Prices Spike
In the last week, crude oil prices have risen to a three-year high. Antigovernment protests in Iran and a blast of cold weather raised concerns about potential supply disruptions.
What Is Driving Noble’s Revenues and Earnings?
In the year preceding fiscal 3Q15, Noble Corporation’s revenue was steady. From fiscal 3Q14 to fiscal 3Q15, Noble’s revenues increased 53%.
Analyst Recommendations for Top 2 Offshore Drillers in 2017
The consensus analyst rating for Diamond Offshore Drilling (DO) is 3.34, which means a “hold.” About 9% of the analysts have recommended a “buy” or some equivalent as of December 13, 2017.
Diamond Offshore Drilling’s 3Q17 Revenue Rose 4.8% Year-over-Year
Diamond Offshore Drilling’s (DO) 3Q17 revenue was $366 million, a fall of almost 8.2% from $399 million in 2Q17 and a 4.8% rise year-over-year.
Why Is Tidewater’s Implied Volatility Up?
On January 17, 2017, Tidewater (TDW) had the highest implied volatility among the OFS (oilfield equipment and services) companies that are part of the VanEck Vectors Oil Services ETF (OIH).
What Are Seadrill’s Restructuring Plans?
As of June 30, 2017, Seadrill (SDRL) has a total interest-bearing debt of $9.3 billion, similar to the previous quarter.
Why Did Baker Hughes Underperform the Industry ETFs?
Oilfield equipment and services companies like Baker Hughes (BHI) are affected by rig counts and energy prices. In the past year, West Texas Intermediate crude oil prices have dropped ~16%.
Analysts Expect 2 Straight Quarters of Rising Revenue for DO
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
Component Sectors of SPY Continued Their Upward Trend
The past week saw one of the worst market performances in the US since the 2008 recession.
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.
Analysts Revised Target Prices for These Offshore Drillers in December
On December 21, 2017, RBC revised the target prices for three offshore drillers.
Seadrill Partners’ 3Q17 Revenue Rose: Can It Continue in 4Q17?
In 3Q17, Seadrill Partners’ (SDLP) operating revenue rose to $277 million from $268 million in 2Q17 after falling for the last five quarters.
What Are Analysts’ Recommendations for Seadrill?
For Seadrill, two analysts recommended a “buy” and two recommended a “hold.” Five analysts recommended a “sell” and one recommended a “strong sell.”
Why Noble Corp.’s fleet structure is crucial to its business
Like many of its competitors, Noble possesses a diversified fleet of rigs that are best suited to different situations and environments.
Why Oilfield Services Stocks Led the Energy Space Last Week
Between September 14 and 21, upstream stock Southwestern Energy Company (SWN) gained the most on our list of energy stocks.
How Ensco’s Segments Performed in 2Q16
Ensco’s (ESV) revenue from continuing operations was $909 million in 2Q16, a 12% increase from 1Q16. Revenues exceeded the company’s guidance.
Oilfield Services Stocks Were the Underperformers Last Week
Last week, oilfield services stock Noble (NE) fell the most among the stocks in the energy space. Other oilfield services stocks Ensco (ESV), Superior Energy Services (SPN), and Nabors Industries (NBR) had the second, third, and fourth largest declines among energy stocks, respectively, last week.
Jefferies and Susquehanna Revised Target Prices for Ensco
In Week 30, which ended on July 27, analysts revised their target prices for Ensco after its second-quarter results.
Transocean’s New Contracts with ConocoPhillips and Chevron
Transocean’s (RIG) ultra-deepwater semi-submersible GSF Development Driller I has secured an 11-well contract with Chevron (CVX) in Australia.
Noble Secures Contract with Encana and Total
According to Noble’s latest fleet status report, the company has secured two contracts and one contract extension for its jackup rigs.
Must-Know Highlights from Transocean’s Q2 2018 Results
Transocean (RIG) released its second-quarter results yesterday after the markets closed. Let’s take a look.
Ensco’s Capex Guidance for the Second Half of 2018
In the first half of 2018, Ensco had negative cash flows from operations of $18 million—compared to its positive cash flow of ~$130.5 million the previous year.
Analyzing Ensco’s Backlog and Contracts
As of June 30, Ensco (ESV) had a total contracted backlog of $2.3 billion—compared to $2.8 billion as of December 31, 2017.
What You Need to Know before Transocean’s Q2 2018 Earnings
Transocean (RIG) is set to release its second-quarter results today after the markets close. Let’s see what analysts expect.