Seeking Alpha
Growth at reasonable price, long/short equity, foreign companies, master limited partnerships
Profile| Send Message|
( followers)  

The overall market, as measured by the S&P 500 index, continued to exhibit the volatility that it has displayed in recent weeks. The market opened the week by sliding down dramatically and continued this slide until the middle of Wednesday. Although it was not a smooth slide, the overall trend continued. There were several corrections and rallies as the market slid downward but none of these succeeded in reversing the trend. The index ended this slide with a sharp fall midday Wednesday that immediately turned into a powerful rally that pushed the market upward. This overall upward trend continued for the rest of the week. However, it was not a smooth movement. The oil markets were much less volatile, meanwhile. Overall, the price for WTI crude exhibited a very smooth fall that lasted all week long. The most significant move was a sharp correction that occurred on Thursday that quickly sent WTI crude prices down nearly $2 per barrel. Prices remained at this level for the rest of the week. As usual, this had different effects on the seven offshore drilling stocks that are tracked in this weekly series of updates.

Seadrill (NYSE:SDRL) opened on Monday, December 3 at $38.66. The stock closed at $37.00 in after hours trading on Friday, December 7. Seadrill shareholders thus suffered a loss of $1.66 or 4.29% over the past week. Seadrill opened at $39.07 on November 12, 2012. This gives the stock a trailing four-week loss of $2.07 per share or 5.30%. Seadrill went ex-dividend on Tuesday, December 4. Shareholders as of the previous day will receive total dividends of $1.70 per share. This corresponds to the third quarter 2012 dividend and an accelerated dividend for the fourth quarter. When this dividend is considered, the company actually delivered a gain of $0.04 or 0.10% over the past week. The dividend also effectively reduces the trailing four-week loss to $0.37 or 0.95%.

SDRL 5-Day Chart

(click to enlarge)

Source: Fidelity Investments

SDRL 4-Week Chart

(click to enlarge)

Source: Fidelity Investments

Ensco (NYSE:ESV) opened at $58.32 on Monday, December 3. The stock closed at $58.01 in after hours trading on Friday, December 7. Shareholders thus suffered a loss of $0.31 or 0.53% over the past week. The stock opened at $55.93 on November 12. Stockholders in the company thus profited from a gain of $2.08 or 3.72% over the trailing four-week period. Ensco stock went ex-dividend on Thursday, December 6. Shareholders as of the previous day will receive a dividend of $0.375 per share. This dividend effectively turns last week's loss into a gain of $0.065 or 0.11%. The dividend payment also effectively increases the stock's trailing four-week gain to $2.455 or 4.39%. Stock ratings site TheStreet.com reiterated its BUY recommendation on Ensco stock on Friday, citing high margins and strong revenue and cash flow growth.

ESV 5-Day Chart

(click to enlarge)

Source: Fidelity Investments

ESV 4-Week Chart

(click to enlarge)

Source: Fidelity Investments

Transocean (NYSE:RIG) opened at $46.98 on Monday, December 3. The stock closed at $46.13 in after hours trading on Friday, December 7. Transocean's shareholders thus suffered a loss of $0.85 or 1.81% this week. The stock opened at $46.63 on November 12. This gives Transocean stock a loss of $0.50 or 1.07% over the trailing four-week period.

RIG 5-Day Chart

(click to enlarge)

Source: Fidelity Investments

RIG 4-Week Chart

(click to enlarge)

Source: Fidelity Investments

Diamond Offshore (NYSE:DO) opened at $69.17 on Monday, December 3. The stock closed at $68.68 in after hours trading on Friday, December 7. Shareholders of Diamond Offshore thus suffered a loss of $0.49 per share or 0.71% for the week. The stock opened at $65.27 on Monday, November 12. The stock thus had a trailing four-week gain of $3.41 per share or 5.22%. Diamond Offshore recently passed J.M. Smucker (NYSE:SJM) to claim the #299 spot on the list of the most valuable companies in the United States. This is indicative of the growth that continues to occur in the offshore drilling industry.

DO 5-Day Chart

(click to enlarge)

Source: Fidelity Investments

DO 4-Week Chart

(click to enlarge)

Source: Fidelity Investments

Atwood Oceanics (NYSE:ATW) opened at $46.43 on Monday, December 3. The stock closed at $46.99 in after hours trading on Friday, December 7. This gives the stock a gain of $0.56 per share or 1.21% for the week. Atwood opened at $47.51 on November 12. Thus, shareholders in the company suffered a loss of $0.52 or 1.09% over the trailing four-week period.

ATW 5-Day Chart

(click to enlarge)

Source: Fidelity Investments

ATW 4-Week Chart

(click to enlarge)

Source: Fidelity Investments

Noble Corp (NYSE:NE) opened the week at $34.72 on December 3, 2012. The stock closed at $34.75 in after hours trading on Friday, December 7. Thus, shareholders witnessed a gain of $0.03 per share or 0.09% for the week. Noble opened at $35.38 on November 12, 2012. Thus, the stock had a trailing four week loss of $0.63 or 1.78%. Susquehanna lowered its target price on Friday to reflect a lack of contracting activity. The new target price is $43, which would represent a 23.74% gain from present levels. Noble also released an updated fleet status report on Thursday. The new report shows downtime on four weeks that resulted in reduced revenue.

NE 5-Day Chart

(click to enlarge)
Source: Fidelity Investments

NE 4-Week Chart

(click to enlarge)

Source: Fidelity Investments

Pacific Drilling (NYSE:PACD) opened the week at $9.58 on December 3, 2012. The stock closed at $9.59 in after hours trading on Friday, December 7. Thus, shareholders profited from a gain of $0.01 per share or 0.10% for the week. Pacific Drilling opened at $10.35 on November 12, 2012. Thus, the stock had a trailing four week loss of $0.76 per share or 7.34%.

PACD 5-Day Chart

(click to enlarge)

Source: Fidelity Investments

PACD 4-Week Chart

(click to enlarge)

Source: Fidelity Investments

These seven companies delivered greatly mixed performances over both the last week and the trailing four-week period. The best performer over the past week was Atwood Oceanics with none of the others anywhere close to matching its performance. The worst performer was Transocean with, once again, none of the others anywhere close to matching its dismal performance. Over the trailing four-week period, most of the stocks here delivered losses, but there were two that delivered gains. Diamond Offshore was the best performer with Ensco being the only other company to deliver gains to investors over the trailing four week period. The worst performance by far belongs to Pacific Drilling. None of the others delivered losses of anywhere near to the same magnitude that Pacific Drilling did.

Source: Weekly Performance Update On 7 Offshore Drilling Stocks