Kevin Feeney
Long/short equity, value, event-driven, special situations

Hercules Offshore: How A Fire On A Natural Gas Rig Became A Buying Opportunity With High Upside

This Tuesday, jack-up rig Hercules 265, owned and operated by Hercules Offshore (NASDAQ:HERO) for Walter Oil & Gas, began leaking natural gas 55 miles off the coast of Louisiana. The rig then caught fire, escalating the problem and sending Hercules' shares down 10.9% to $7.09 from the 52 week high of $7.96 that it reached on Tuesday. After-hours, shares fell another 1.55% to $6.98 as the situation continued. When you hear the words such as rig collapse, fire, or explosion in the Gulf of Mexico, you probably think of BP (NYSE:BP) and Transocean (NYSE:RIG), the oil & gas company and rig operator responsible for the Deepwater Horizon Incident in 2010. That catastrophic incident had...

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