Street Smart Investor
Long-term horizon, energy, natural resources, micro-cap

Pacific Drilling: Set For A Big 2014 And 2015

Investment Summary

Pacific Drilling (NYSE:PACD), having positioned itself as one of the most modern ultra-deepwater contractors, is set for exciting growth in 2014. The growth momentum in 2014 as well as 2015 can potentially trigger strong stock price momentum on the upside. This investment thesis will discuss the growth assumptions, revenue and EBITDA numbers and valuation to conclude that Pacific Drilling is a "Strong Buy" at these levels.

Company Overview And Competitive Advantage

Pacific Drilling is an offshore drilling contractor with five rigs in operation and three rigs to be delivered in 2014 and 2015. The company's operating units are contracted with Chevron (NYSE:CVX), Total (NYSE:TOT) and Petrobras Brazil. As of December 2013, Pacific...

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