sticking in the green - looks like they just announced a 5 year, $1.19 Billion contract for their rig Pathfinder. If you divide that into days, it looks like a day rate of $650K+ which is about as high as I've seen. Continue to love this space and wonder why the valuations are not higher.- Transocean Inc. (NYSE:RIG - News) today announced that its deepwater drillship Deepwater Pathfinder, a single-activity rig capable of drilling in water depths up to 10,000 feet, has been awarded a five-year contract by a subsidiary of Eni for drilling operations primarily in the U.S. Gulf of Mexico. The contract is scheduled to commence in March 2010 following completion of the rig's existing contract commitments.
- Estimated contract revenues that could be generated over the five-year contract period are approximately $1.19 billion. Estimated contract revenues represent the maximum amount of revenues that may be earned in the contract period, excluding revenues for cost escalations.
- The Deepwater Pathfinder drillship, which entered service in 1998, is one of 39 High-Specification Floaters in the Transocean fleet, 18 of which are Ultra-Deepwater Floaters capable of drilling in water depths of 7,500 feet or greater.
Long Atwood Oceanics in fund; no personal position
6 comments:
I think RIG will always have a low PEG. It just can't grow fast enough to satisfy the growth fund guys. And they do have alot of contracted rigs out, a long long way. There have a pretty diversified schedule of "free agents" coming up, so there doesnt seem to be a point which makes this a screaming buy in terms of new contract signs in bulk. But it will be a stable grower of earnings.
Actually, I was hoping to see day rates of 700+k for 10,000ft rigs.
reaaaaaaaally hoping RIG hits 135 to really load up.
the whole drilling space has low PEG's and PE's for that matter. what's been interesting is even after watching RIG's share price run up and up, the PEG/PE never really get too inflated. slow and steady is fine by me
exactly. I think this is a great sector.. plenty of visibity. The PEG/PE will always be low, but the E will rise consistently. My limit buy is at 130 right now. Will it get there? I don't know. But I sure hope so. If oil comes off, I don't see why we wouldnt get that chance.
There is something to be said for almost "in the bag" 20-25% annual appreciation over a 5 year period. These are the type of names to do that.
Granted not as sexy as other groups but no one asks if your cash is sexy at the bank teller. Remember, NOV is helping build all these rigs. Also worth your look.
Entire group has broken 50 day MA - even the "not so deep but still attached to hip bone of PBR" NE, except 1 name.
ATW
Now the question is does it follow the rest into the abyss. I believe so. But you have to like the relative strength and believe it means something on the way up.
Looking at RIG, PDE, DO, NE for comparisons.
the "in the bag" 20-25% growth is rather amazing. you'd think a stock like that would have a higher PE/PEG. But it doesnt.
Alot of the news is out with ATW on that recent signing. They don't have many rigs, and I dont think they have any in the 10,000ft range. But it seems like the 5000ft area is getting good pricing power.
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