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Like last week, the market as measured by the S&P 500 showed some volatility over the past week but overall it ended up positive. The S&P 500 opened at 1332.14 and closed at 1342.84. We saw a market decline early in the week but it rebounded sharply in the latter half of the week to close at the higher level. The chart for oil looks similar but overall the commodity proved to be much more volatile than the overall market. Oil prices fell sharply on Monday and then slowly began to trend upward. Oil would fail to regain the price that it held on Monday though and finished the week down from the open on Monday. Let's see what effect this had on the six offshore drilling companies that are tracked in this series.

SeaDrill (NYSE:SDRL) opened on Monday, June 11 at $34.14. The stock closed at $34.02 in after hours trading on Friday, June 15. SeaDrill shareholders thus incurred a loss of $0.12 or 0.35% this week. SeaDrill opened at $36.23 on May 21, 2012. This gives the stock a four-week loss of $2.21 per share or 6.10%. SeaDrill went ex-dividend on May 22, 2012. Shareholders as of that date will receive a dividend of $0.97 which consists of a $0.82 per share regular dividend and a $0.15 per share special dividend. Therefore, the four-week loss is $1.24 or 3.42% when the dividend is included in the return. On June 14, 2012, John Fredriksen's Hemen Holding reacquired 600,000 shares of SeaDrill that the company previously sold at the end of February. The company looks likely to continue to increase its position in SeaDrill and that could apply some upward pressure on the stock.

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 $44.85 on Monday, June 11. The stock closed at $43.78 in after hours trading on Friday, June 15. This gives the stock a loss of $1.07 or 2.39% over the week. The stock opened at $47.71 on May 21. The stock thus incurred a loss of $3.93 or 8.23% over the four-week period. Ensco went ex-dividend on June 7. Shareholders as of that date will receive a payment of $0.375 per share. Shareholders in the stock would see a loss of $3.555 or 7.45% over the four-week period when the dividend is considered.

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 $42.59 on Monday, June 11. The stock closed at $44.47 in after hours trading on Friday, June 15. Transocean thus had a gain of $1.88 or 4.41% this week. The stock opened at $42.51 on May 21. This gives Transocean a gain of $1.96 or 4.61% over the four-week period.

RIG 5-Day Chart (click to enlarge) Source: Fidelity Investments

RIG 4-Week Chart (click to enlarge) Source: Fidelity Investments

Diamond Offshore (NYSE:DO) opened at $60.59 on Monday, June 11. The stock closed at $61.26 in after hours trading on Friday, June 15. This gives the stock a gain of $0.67 per share or 1.11% for the week. The stock opened at $59.33 on Monday, May 21. The stock thus had a four-week gain of $1.93 per share or 3.25%.

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 $39.77 on Monday, June 11. The stock closed at $38.95 in after hours trading on Friday, June 15. This gives the stock a loss of $0.82 per share or 2.06% for the week. Atwood opened at $38.94 on May 21. Thus, shareholders in the company experienced a gain of $0.01 or 0.02% over the 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 $32.07 on June 11, 2012. The stock closed at $31.40 in after hours trading on Friday, June 15. Thus shareholders incurred a loss of $0.67 or 2.09% for the week. Noble opened at $32.22 on May 21, 2012. Thus, the stock had a four week loss of $0.82 or 2.55% over the four-week period.

NE 5-Day Chart (click to enlarge)
Source: Fidelity Investments

NE 4-Week Chart (click to enlarge)
Source: Fidelity Investments

Transocean was the best performing stock of these six over the past week and one of only two (Diamond Offshore was the other) that saw a positive return this week. Ensco was the worst performer of these six over the last week although both Atwood Oceanics and Noble Corp were close behind. Transocean was by the best performer of the six over the trailing four week period with Diamond Offshore in second place. Of the six companies, only Atwood Oceanics, Diamond Offshore, and Transocean saw positive returns over the four-week period, even after accounting for dividends. Ensco was by far the worst performer over the trailing four week period with none of the others anywhere close. Despite the decline in oil prices, the fundamentals for the offshore drilling industry remain quite strong. There could be several potential buys here.

Source: Weekly Performance Update On 6 Offshore Drilling Stocks