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The overall market, as measured by the S&P 500, closed the week slightly higher than Monday's opening price although there was some volatility along the way. Monday was relatively flat, Tuesday opened strongly and then quickly corrected, this correction continued until late Thursday. The index reversed its weakness late Thursday and then showed considerable strength on Friday. Crude oil also gained over the week although it was much less volatile. This also proved to be quite a slow news week for the industry in general, with none of the stocks having any news that had significant effects on their respective prices. This market action had different effects on the six offshore drilling stocks that I track in this series.

SeaDrill (SDRL) opened on Monday, July 9 at $35.48. The stock closed at $36.47 in after hours trading on Friday, July 13. SeaDrill shareholders thus experienced a gain of $0.99 or 2.79% over the past week. SeaDrill opened at $33.70 on June 18, 2012. This gives the stock a four-week gain of $2.77 per share or 8.22%.

SDRL 5-Day Chart

Source: Fidelity Investments

SDRL 4-Week Chart

Source: Fidelity Investments

Ensco (ESV) opened at $47.11 on Monday, July 9. The stock closed at $48.96 in after hours trading on Friday, July 13. This gives the stock a gain of $1.85 or 3.93% over the past week. The stock opened at $43.15 on June 18. Stockholders in the company thus saw a gain of $5.81 or 13.46% over the four-week period.

ESV 5-Day Chart

Source: Fidelity Investments

ESV 4-Week Chart

Source: Fidelity Investments

Transocean (RIG) opened at $44.64 on Monday, July 9. The stock closed at $46.39 in after hours trading on Friday, July 13. Transocean's shareholders thus experienced a gain of $1.75 or 3.92% this week. The stock opened at $43.81 on June 18. This gives Transocean a gain of $2.58 or 5.89% over the trailing four-week period.

RIG 5-Day Chart

Source: Fidelity Investments

RIG 4-Week Chart

Source: Fidelity Investments

Diamond Offshore (DO) opened at $58.46 on Monday, July 9. The stock closed at $63.08 in after hours trading on Friday, July 13. This gives the stock a gain of $4.62 per share or 7.90% for the week. The stock opened at $60.02 on Monday, June 18. The stock thus had a trailing four-week gain of $3.06 per share or 4.85%.

DO 5-Day Chart

Source: Fidelity Investments

DO 4-Week Chart

Source: Fidelity Investments

Atwood Oceanics (ATW) opened at $38.99 on Monday, July 9. The stock closed at $41.45 in after hours trading on Friday, July 13. This gives the stock a gain of $2.46 per share or 6.31% for the week. Atwood opened at $38.58 on June 18. Thus, shareholders in the company experienced a gain of $2.87 or 7.44% over the trailing four-week period.

ATW 5-Day Chart

Source: Fidelity Investments

ATW 4-Week Chart

Source: Fidelity Investments

Noble Corp (NE) opened the week at $32.72 on July 9, 2012. The stock closed at $34.48 in after hours trading on Friday, July 13. Thus shareholders experienced a gain of $1.76 or 5.38% for the week. Noble opened at $31.08 on June 18, 2012. Thus, the stock had a trailing four week gain of $3.40 or 10.94% over the four-week period. Noble will announce its second quarter results on July 18. Analysts expect that revenue will grow 43.1% and EPS will grow 247.1% over the prior year quarter. If Noble fails to meet these estimates then it is likely that its stock will take a price hit following the announcement. On the other hand, an earnings beat will likely lead to further impressive performance.

NE 5-Day Chart


Source: Fidelity Investments

NE 4-Week Chart

Source: Fidelity Investments

Diamond Offshore delivered the best performance this week, although all six companies delivered admirable gains. SeaDrill was the worst performer, but it still delivered a 2.79% gain over the week. The four-week trailing returns for all six companies look even better with Ensco leading the pack at 13.46%. Diamond Offshore's trailing four-week return was the worst of these six companies but even it delivered a 4.85% return over the period. Most of this week's gains came at the end of the week so there appears to be some connection to the strength witnessed in the broader market on Friday. The industry as a whole still has very positive fundamentals, however, and so there exists potential for further gains here.

Source: Weekly Performance Update On 6 Offshore Drilling Stocks