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The overall market, as measured by the S&P 500 index, continued to show significant volatility over the past week. The index was relatively flat on Monday before jumping between Monday and Tuesday. The market opened much higher on Tuesday than where it closed on Monday. From there, the market continued to swing upward throughout most of the day on Tuesday, but corrected towards the end of the day and eliminated all of its gains that day. The market continued up once again between Tuesday and Wednesday and continued this upward trend until the latter parts of Wednesday, when the index experienced a correction that saw it fall sharply all throughout Thursday. The index was relatively flat on Friday, but this correction in the latter half of the week erased all of its gains from earlier in the week. The index closed at a lower value than where it opened. Oil prices, meanwhile, were nearly perfectly flat throughout the entire week. This provides an interesting contrast to the broad market index. The action in the markets had a differing effect on each of the seven offshore drilling stocks that I follow in this weekly update series.

Seadrill (NYSE:SDRL) opened on Monday, December 10 at $36.77. The stock closed at $36.68 in after hours trading on Friday, December 14. Seadrill shareholders thus suffered a loss of $0.09 or 0.25% over the past week. Seadrill opened at $38.50 on November 19, 2012. This gives the stock a trailing four-week loss of $1.68 per share or 4.36%. 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. This dividend effectively changes the trailing four-week loss into a gain of $0.02 or 0.05%. Several weeks ago, Seadrill made a tender offer for all of the outstanding stock of Asia Offshore Drilling. The tender offer expired this week. Seadrill managed to acquire 66.16% of all the outstanding shares of the company.

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 $58.01 on Monday, December 10. The stock closed at $56.91 in after hours trading on Friday, December 14. Shareholders thus suffered a loss of $1.10 or 1.90% over the past week. The stock opened at $55.47 on November 19. Stockholders in the company thus profited from a gain of $1.44 or 2.60% 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. The dividend payment effectively increases the stock's trailing four-week gain to $1.815 or 3.27%.

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 $46.23 on Monday, December 10. The stock closed at $44.44 in after hours trading on Friday, December 14. Transocean's shareholders thus suffered a loss of $1.79 or 3.87% this week. The stock opened at $45.17 on November 19. This gives Transocean stock a loss of $0.73 or 1.62% over the trailing four-week period.

RIG 5-Day Chart

(click to enlarge)

Source: Fidelity Investments

RIG 4-Week Chart

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Source: Fidelity Investments

Diamond Offshore (NYSE:DO) opened at $69.00 on Monday, December 10. The stock closed at $67.36 in after hours trading on Friday, December 14. Shareholders of Diamond Offshore thus suffered a loss of $1.64 per share or 2.38% for the week. The stock opened at $65.85 on Monday, November 19. The stock thus had a trailing four-week gain of $1.51 per share or 2.29%. Diamond Offshore was downgraded this week by Jefferies as the firm believes that the stock is now approaching its full valuation.

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 $47.05 on Monday, December 10. The stock closed at $44.75 in after hours trading on Friday, December 14. This gives the stock a loss of $2.30 per share or 4.89% for the week. Atwood opened at $45.71 on November 19. Thus, shareholders in the company suffered a loss of $0.96 or 2.10% 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 $35.02 on December 10, 2012. The stock closed at $33.81 in after hours trading on Friday, December 14. Thus, shareholders suffered a loss of $1.21 per share or 3.46% for the week. Noble opened at $34.01 on November 19, 2012. Thus, the stock had a trailing four week loss of $0.20 or 0.59%. Noble will sell two of its less capable jack-up rigs for a total of $79 million early next year. Both of these are older rigs. Only one of the two (the Noble Lewis Dugger) is currently operating and generating money. The other rig is cold-stacked and is not generating any revenue for Noble. This deal will have the effect of lowering contract revenues and the resultant profits but overall will prove beneficial for shareholders.

NE 5-Day Chart

(click to enlarge)
Source: Fidelity Investments

NE 4-Week Chart

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Source: Fidelity Investments

Pacific Drilling (NYSE:PACD) opened the week at $9.53 on December 10, 2012. The stock closed at $9.33 in after hours trading on Friday, December 14. Thus, shareholders suffered a loss of $0.20 per share or 2.10% for the week. Pacific Drilling opened at $10.09 on November 19, 2012. Thus, the stock had a trailing four week loss of $0.76 per share or 7.53%.

PACD 5-Day Chart

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Source: Fidelity Investments

PACD 4-Week Chart

(click to enlarge)

Source: Fidelity Investments

All seven of these companies fell victim to the overall decline in the market this week. All seven delivered losses over the past week, although performances were mixed over the trailing four-week period. The best performer over the past week, meaning the stock with the smallest loss, was Seadrill Limited. Atwood Oceanics was the worst performer over the past week. None of the others came close to matching Atwood's loss, although both Transocean and Noble Corp. saw large declines as well. Meanwhile, three of these seven stocks delivered gains over the trailing four-week period and the remaining four delivered losses. The three that delivered gains were Seadrill, Ensco, and Diamond Offshore when Seadrill's dividend payment is considered. Of the three, Ensco delivered the largest gain by a significant margin. Pacific Drilling was by far the worst performer over the period. None of the others delivered a loss of anywhere near the magnitude of Pacific Drilling's.

Source: Weekly Performance Update On 7 Offshore Drilling Stocks