Disruptive Investor
Long/short equity, deep value, event-driven, macro

Pacific Drilling: Stellar Growth Can Trigger Stock Upside

In several of my recent investment notes, I have discussed listed entities involved in offshore drilling and ultra-deepwater drilling. The primary reason for being bullish on the offshore drilling sector is evident from the chart below, which gives the recent oil discoveries by water depth.

(click to enlarge)

This investment note discusses Pacific Drilling (NYSE:PACD), which is a pure play in the ultra-deepwater drilling segment. The focus of the discussion will be on the revenue drivers, which can potentially trigger stock upside. At the same time, the credit aspects will be discussed as it plays a key role in the company's ambitious growth plans.

As of 2Q13, Pacific Drilling had 4 operating rigs with another four rigs under...

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