Stephen Simpson, CFA
Long only, growth at reasonable price, value, research analyst

Oceaneering Seems A Little Underloved

This hasn't been a fun stretch for offshore energy service companies. Land-oriented service providers like Helmerich & Payne (NYSE:HP) and Halliburton (NYSE:HAL) have performed nicely so far this year, but the offshore companies like Oceaneering (NYSE:OII), Tidewater (NYSE:TDW), and Helix (NYSE:HLX) have been left behind on worries that actual activity is going to underwhelm as large energy companies pay much greater attention to costs and free cash flow generation.

I think the details matter. I would be more nervous about owning shares in companies heavily leveraged to drilling activity and those dependent upon Brazil for a large share of revenue. I also have much less interest in the offshore construction...

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