Pacific Drilling SA

Offshore drilling companies are capital-intensive and have varying degrees of financial leverage. Thus, we use the EV-to-EBITDA multiple as a valuation.

The offshore drilling industry has a high degree of financial and operating leverage, which forces participants to engage in price competition.

Unconventional sources of onshore drilling have started gaining popularity in recent years, but the crude from these sources are costly to produce.

The majority of offshore operations occur in six key locations worldwide that differ widely in terms of water depth, weather conditions, and remoteness.

The offshore drilling process requires complex machinery and large crews. At every stage, things that can go wrong, so each stage requires special care.