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These Stocks Outperformed the Energy Space Last Week
Between January 18 and January 25, oilfield services stock Weatherford International rose the most among the energy stocks under review in this series.
Upstream and Oilfield Services Stock Fell Last Week
On December 7–14, upstream stock Carrizo Oil & Gas (CRZO) fell the most on our list of energy stocks.
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.
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.
US Offshore Rig Count Fell by Two in Week 30
The US offshore rig count in Week 30, which ended July 27, was 16, one less than the previous week and eight less YoY (year-over-year).
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.
Why Diamond Offshore Stock Rose More than 5% this Morning
Diamond Offshore released its second-quarter results today before the markets opened. Let’s take a look.
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.
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.
Offshore Drilling Rig Count and Stocks Fell in Week 29
In Week 29, which ended on July 20, all offshore drilling stocks traded in the red. Seadrill (SDRL) fell the most.
US Crude Oil Rigs Approach a Two-Month Low—What’s Next?
Active WTI crude oil futures decreased 1.0% to $70.46 per barrel from July 13 to July 20.
How Analysts Rate Noble, Pre-Q2 2018 Results
Analysts’ consensus rating for Noble is 3.2 on a scale of 1 (“strong buy”) to 5 (“strong sell”), meaning “hold.”
Four Analysts Revised Target Prices for Offshore Drilling Companies
In Week 28, RBC Capital, BMO, Evercore, and Susquehanna revised target prices for offshore drilling companies.
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.
Is President Trump Helping Crude Oil Bulls or Bears?
WTI crude oil prices fell 8.2% on June 29–July 17. August WTI oil futures contracts rose 0.03% to $68.08 per barrel on July 17.
US Natural Gas Rigs Are near a Four-Week High
Baker Hughes reported that US natural gas rigs rose by two to 189 on July 6–13—the highest level since June 15.
Diamond Offshore Has the Most ‘Sell’ Ratings among Peers
In this part of our series, we’ll compare Wall Street analysts’ consensus ratings for the offshore drilling companies we’ve been analyzing.
Offshore Drilling Companies’ Technical Indicators
Earlier in this series, we analyzed and compared the business fundamentals of different offshore drilling companies. Now we’ll look at the technical indicators for these offshore drillers (XLE).
Comparing Offshore Drilling Companies’ Liquidity
Along with a company’s long-term solvency, it’s important to look at its liquidity position.
Which Offshore Drillers Have the Highest and Lowest Leverage?
Offshore drilling (XLE) companies are capital-intensive, so looking at their financial leverage is very important. The debt-to-equity ratio and net debt-to-EBITDA ratio show these companies’ financial leverage.
Top Energy Gainers Last Week
On July 6–13, upstream stock Sanchez Energy (SN) saw the highest gain on our list of energy stocks.
US Crude Oil Rig Count Hits a Three-Year High
Baker Hughes, a GE company (BHGE), published its US crude oil rig count report on July 6, indicating that the US crude oil rig count rose by five last week to 863, its highest level since March 2015.
The Top Energy Decliners in the Week Ended July 6
During the week ended July 6, US crude oil August futures and natural gas August futures fell 0.5% and 2.3%, respectively.
US Gasoline Inventories Help Gasoline Futures
US gasoline futures rose 0.6% to $2.13 per gallon on July 5 due to the larger-than-expected drop in gasoline inventories.
Saudi Arabia’s Crude Oil Production Could Hit a New Record
Reuters estimates that Saudi Arabia’s crude oil production increased by 700,000 bpd to 10,700,000 bpd in June—compared to the previous month.
OPEC’s Crude Oil Production Rose in June
On July 2, a Reuters survey showed that OPEC’s crude oil production increased by 320,000 bpd (barrels per day) to 32,320,000 bpd in June.
A Close Look at the International Offshore Rig Count
In May, the international offshore rig count was 198, up by four from 194 in April.
Why Offshore Drilling Stocks Rose 7%–11% Yesterday
Yesterday, US crude oil surged 3.2% to close at $72.76 per barrel—the highest level since November 2014. Oil prices rose after a significant drop in US crude oil supplies.
Jefferies Revises Ratings and Target Prices for Offshore Drillers
In Week 25, which ended June 22, Jefferies downgraded one offshore driller and revised the target prices for others.
On June 22, Offshore Drilling Stocks Rose on Volume Spike
On June 22, three offshore drilling stocks traded at unusually high volumes, which led to prices rising.
Offshore Drillers: Analysts’ Second-Quarter Revenue Estimates
Transocean’s (RIG) estimated second-quarter revenues are $764.5 million—15% above the previous quarter and 7.5% higher YoY.
Analyzing Offshore Drilling Companies’ First-Quarter EBITDA
In the first quarter, Ensco’s EBITDA fell to $91.3 million from $98.4 million in the fourth quarter of 2017. The first-quarter EBITDA was 45.3% lower YoY.
Comparing Ensco’s Backlog with Transocean and Diamond Offshore
As of March 31, Ensco (ESV) had a total contracted backlog of $2.7 billion—compared to $3.8 billion as of December 31, 2017.
Week 24: Where Was the US Offshore Rig Count Headed?
The US offshore rig count in Week 24, which ended June 15, was 20, the same as the previous week.
All Offshore Tanker Stocks Fell in Week 24
In Week 4, which ended June 15, offshore drilling stocks fell along with oil prices ahead of OPEC ’s meeting scheduled for June 22.
US Natural Gas Rigs Fell to a Ten-Week Low
Baker Hughes reported that the US natural gas rig count fell by four to 194 on June 8–15—the lowest level since April 13.
Analyzing Noble’s June Fleet Status Report
On June 7, Noble (NE) released its June fleet status report. Most of the offshore drilling companies don’t publish a monthly fleet status report.
Transocean’s Second-Quarter and 2018 Capex Guidance
In the first quarter, Transocean’s (RIG) cash flow from operations dropped to $103 million from $244 million in the previous quarter.
A Look at Seadrill Partners’ Backlog and New Contracts
Seadrill Partners’ (SDLP) backlog was $1.3 billion on May 24. It fell from $1.5 billion in February.
What Factors Will Affect SDLP’s Second-Quarter Revenue?
In the first quarter, Seadrill Partners’ (SDLP) operating revenue fell to $194.3 million from $256.2 million in the previous quarter.
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.
Week 21: Offshore Rig Count Is Flat Compared to Previous Week
Last week, the US offshore rig count was at 19, the same as it was in the previous week.
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.
Why Seadrill Stock Skyrocketed
Seadrill stock has skyrocketed. On May 17, the stock rose 26.1% and reached $0.58. The company’s volume increased to 69.3 million shares.
What You Need to Know about Noble’s May Fleet Status Report
According to Noble Corporation’s latest fleet status report, the company has secured two new contracts.
Analysts’ Revisions for Ensco and Rowan Companies
On April 30, Wells Fargo reduced the target price for Ensco to $5 from $6. In week 17, Susquehanna reduced the target price for Ensco to $5 from $5.5.
Rowan Companies Lowers Its 2018 Cost Guidance
Rowan Companies’ (RDC) direct operating costs, excluding rebillable items, were $140 million in 1Q18, below its guidance of $150 million–$160 million.
Digging into Rowan Companies’ 1Q18 Revenue
Rowan Companies (RDC) has two main operating segments—Ultra-Deepwater Drillships and Jack-Up Drilling Rigs.
Last Week’s Biggest Losses among Energy Stocks
Between April 20 and April 27, oilfield services stock Ensco (ESV) fell the most on our list of energy stocks.
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’ Revisions for Offshore Drilling Stocks
None of the analysts revised their recommendation or target prices for offshore drilling stocks in week 12.
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.
Which Offshore Drilling Company’s Backlog Rose from 4Q17?
As of February 19, 2018, Transocean (RIG) had a backlog of $12.8 billion—up from $9.4 billion in October 2017.
Why 7 Analysts Revised Rowan Companies’ Target Price
On March 5, 2018, UBS reduced Rowan Companies’ target price to $17 from $18. On March 2, 2018, Wells Fargo cut the target price to $12 from $16.
Rowan Companies: Fighting the Downturn
As of December 31, 2017, Rowan Companies has long-term debt of $2.5 billion. The company doesn’t have any debt maturities in 2018.
Rowan Companies’ Provided Its 2018 Capex Guidance
In 4Q17, Rowan Companies’ (RDC) capital expenditure or capex was $22 million. The capex was lower than the previous estimate.
Dissecting Rowan Companies’ Backlog
As of February 13, 2018, Rowan Companies (RDC) had a backlog of $456 million—down from $1.7 billion in February 2017.
Rowan Companies’ 1Q18 Cost Guidance
Rowan Companies’ (RDC) direct operating costs were $166 million in 4Q17—above the previous guidance of $150 million–$160 million.
Rowan Companies: Analyzing Its 4Q17 Revenue
Rowan Companies’ total drilling revenue for 4Q17 was $296 million—1.7% higher than $291 million in 3Q17.
Week 10: Offshore Drilling Industry Update
Rowan Companies had the worst YTD returns as of March 9, 2018. The stock has fallen 23.2% since the start of the year.
Which Energy Stocks Fell More than the Oil Market Last Week?
On February 23–March 2, 2018, upstream stock California Resources (CRC) was the largest loser on our list of energy stocks.
Transocean’s Fleet: Rig Additions and Subtractions in 2017
In 2017, Transocean added two ultra-deepwater newbuild drillships—Deepwater Pontus and Deepwater Poseidon—to its fleet.
Inside Rowan Companies’ 4Q17 Earnings Estimate
Analysts expect a fall in Rowan Companies’ (RDC) EBITDA (earnings before interest, tax, depreciation, and amortization).
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 […]
Diamond Offshore’s Backlog and Contracts
As of January 1, 2018, Diamond Offshore Drilling (DO) had a backlog of $2.4 billion—compared to $3.5 billion on January 1, 2017.
Diamond Offshore: Target Prices after Its 4Q17 Results
On February 13, UBS reduced the target price on Diamond Offshore to $20 from $22. Simmons reduced the target price to $9.35 from $10.
How Diamond Offshore’s Debt Profile Stands after 4Q17
As of December 31, 2017, Diamond Offshore had long-term debt of $1.97 billion—compared to $1.98 billion in the previous year.
Analyzing Diamond Offshore’s 4Q17 Revenues
Diamond Offshore Drilling’s total 4Q17 drilling revenue was $338 million—a fall of almost 6% from $357 million in 3Q17.
Drilling Deep into Diamond Offshore’s 4Q17 Results
Diamond Offshore Drilling’s (DO) total revenue fell 5.4% in 4Q17 to $346 million—compared to $366 million in 3Q17.
Shallow Water Drilling Permits Rose, Deepwater Permits Fell
In December 2017, no drilling permits were issued in the Gulf of Mexico’s shallow waters. In November, one drilling permit was issued.
Which Offshore Driller Has the Highest Backlog among Its Peers?
In this article, we’ll look at offshore drillers’ backlogs in comparison to their revenues.
The Offshore Drillers with the Highest and Lowest Credit Ratings
Among the offshore drillers under our consideration in this series, Diamond Offshore Drilling (DO) has the highest credit rating by Moody’s at “Ba3.”
The Only 2 Offshore Drillers That Still Pay Dividends
Slumping oil prices have put offshore drillers (IYE) under financial pressure. The first victim of this pressure has been dividends.
Comparing Offshore Drillers’ Leverages
Offshore drilling (IYE) companies are capital intensive, so looking at their financial leverages is very important.
This Offshore Driller Has the Most Floaters and Jack-Up Rigs
Offshore (OIH) exploration and development wells are drilled with the use of rigs. Rigs come in various sizes and with various characteristics.
Rowan Companies: 4Q17 Analyst Estimates and Recommendations
Of the 33 analysts covering Rowan Companies (RDC), 30% recommend a “buy” or some equivalent for the stock, while 61% recommend a “hold.”
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.”
Diamond Offshore Drilling: 4Q Analyst Estimates, Recommendations
Of the 32 analysts covering Diamond Offshore Drilling (DO), only 9% recommend a “buy” or equivalent for the stock.
Barclays Downgrades 2 Offshore Drillers, Revises Target Prices
On January 24, 2018, Barclays revised its target prices for many offshore drilling stocks (XLE).
Noble Corporation’s Latest Fleet Status Report
At the end of the third quarter, Noble Corporation’s backlog stood at $3.18 billion—down 1% from the previous quarter.
Noble’s Analyst Recommendations at the Start of 2018
Noble (NE) was the third-best performer among top offshore drillers in terms of market returns in 2017.
One More Downgrade Comes in for Diamond Offshore
Of the 32 analysts covering Diamond Offshore (DO), only 9% recommend a “buy” or equivalent for the stock.
Is Analyst Sentiment toward Ensco Turning Bullish?
Of the 32 analysts covering Ensco, 47% recommend a “buy” or some equivalent for ESV stock.
Jefferies, Citigroup Revised Their Offshore Stock Recommendations
In the week ended January 5, 2018, Jefferies and Citigroup revised their target prices and recommendations for offshore drilling stocks.
Offshore Drilling Stocks Start 2018 on a Good Note
In the week ended January 5, 2018, all offshore drilling stocks traded in the green. Noble Corporation (NE) was the best performer among its offshore drilling peers.
Transocean’s Updates from the Previous Week
On December 21, 2017, Transocean (RIG) announced that it had secured a 22-well contract for its harsh environment semisubmersible, the Transocean Spitsbergen, with Statoil.
Updates on Seadrill’s Restructuring Plan
Last week, Seadrill (SDRL) received another restructuring proposal. This time, the proposal was from Barclays, which holds Seadrill’s bonds.
How Many Drilling Permits Were Issued in November?
In November 2017, one drilling permit was issued in the shallow waters of the Gulf of Mexico.
What’s in Store for the US Offshore Rig Count?
The US offshore rig count stood at 19 in the week ended December 22, 2017.
Moody’s Changed Seadrill Partners’ Outlook
On December 13, 2017, Moodys affirmed the “Caa2” rating on Seadrill Partners (SDLP) and changed the outlook to “stable” from “negative.”
Ensco: The 5th-Best Performing Stock in Offshore Drilling
Among offshore drilling stocks, Ensco (ESV) is the fifth-best-performing stock in 2017. It had a YTD (year-to-date) return of -42.5% as of December 12, 2017.
Noble: 3rd-Best Performing Stock in the Offshore Drilling Space
Noble Corporation (NE) is the third-best-performing stock among its peers, behind Diamond Offshore Drilling (DO) and Rowan Companies (RDC).
Rowan Companies: The 2nd-Best Performing Offshore Drilling Stock
Rowan Companies’ (RDC) year-to-date return was -22.6% as of December 12, 2017. The stock has underperformed its peer Diamond Offshore Drilling (DO).
Diamond Offshore Drilling: Best Offshore Drilling Stock in 2017
Diamond Offshore Drilling’s (DO) YTD (year-to-date) returns were -3.5% as of December 12, 2017.
US Crude Oil Rigs Are Near 3-Month High
Baker Hughes, a GE company, published its weekly US crude oil rig report on December 1, 2017.
Where Is the Offshore Rig Count Heading?
In October 2017, the international offshore rig count was 204—down 14 rigs from 190 in the previous month.
Production Cut Extension Could Influence US Natural Gas Rigs
Baker Hughes, a GE company, is scheduled to release its US crude oil and natural gas rig count report on December 1, 2017.
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).