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The overall market, as measured by the S&P 500 index, showed substantial volatility over the past week. The index trended down on Monday before recovering somewhat at the end of the day, then immediately fell after hours. This resulted in Tuesday's open being well below Monday's close. Tuesday was flat overall but was characterized by large intra-day moves. The index began trending upward at the end of the day on Tuesday and continued upward on Wednesday before falling significantly after hours. Thursday saw a large drop immediately upon the market open which was followed by a rally that led the index back up. There was then a sharp jump after-hours on Thursday, followed by a steady downtrend on Friday. The bottom fell out of the oil markets, meanwhile. At times, WTI reached prices under $91 per barrel. Much of this drop came on Wednesday, which saw prices rapidly fall from around $96 per barrel to under $92 per barrel. There was a slight recovery on Friday, but nowhere close to what would be needed to erase the fall. As always, this had different effects on the seven offshore drilling companies that I track in this weekly update series.

SeaDrill (SDRL) opened on Monday, September 17 at $40.88. The stock closed at $39.67 in after-hours trading on Friday, September 21. SeaDrill shareholders thus suffered a loss of $1.21 or 2.96% over the past week. SeaDrill opened at $41.69 on August 27, 2012. This gives the stock a trailing four-week loss of $2.02 per share or 4.85%. SeaDrill went ex-dividend on Tuesday, September 4. Shareholders as of market close the previous day (Friday, due to the market not being open on Monday) will be receiving or already have received a dividend of $0.84 per share. Therefore, SeaDrill shareholders witnessed a total loss of $1.33 or 3.20% over the trailing four-week period when the dividend is considered. SeaDrill filed for an IPO for its new MLP, SeaDrill Partners, earlier this week. This will increase the liquidity of the parent company as the money from the IPO will be used to purchase partial interest in two of SeaDrill's rigs. The MLP may also purchase stakes in additional rigs at some point.

SDRL 5-Day Chart

Source: Fidelity Investments

SDRL 4-Week Chart

Source: Fidelity Investments

Ensco (ESV) opened at $57.96 on Monday, September 17. The stock closed at $58.23 in after-hours trading on Friday, September 21. Shareholders thus profited from a gain of $0.27 or 0.47% over the past week. The stock opened at $57.00 on August 27. Stockholders in the company thus profited from a gain of $1.23 or 2.16% over the trailing four-week period. Ensco went ex-dividend on September 6. Shareholders as of the close of the market on September 5 will receive a dividend of $0.375. This dividend increases the company's trailing four-week gain to $1.605 or 2.82%.

ESV 5-Day Chart

Source: Fidelity Investments

ESV 4-Week Chart

Source: Fidelity Investments

Transocean (RIG) opened at $46.39 on Monday, September 17. The stock closed at $48.00 in after-hours trading on Friday, September 21. Transocean's shareholders thus profited from a gain of $1.61 or 3.35% this week. The stock opened at $49.06 on August 27. This gives Transocean stock a loss of $1.06 or 2.16% over the trailing four-week period. Brazil's Petrobras (PBR) is assisting Transocean in an appeal of an injunction that would prevent the company from operating in Brazil. Meanwhile, stock ratings firm TheStreet reiterated its sell rating on the stock, citing weakness in its profit margin and net income.

RIG 5-Day Chart

Source: Fidelity Investments

RIG 4-Week Chart

Source: Fidelity Investments

Diamond Offshore (DO) opened at $68.84 on Monday, September 17. The stock closed at $69.24 in after-hours trading on Friday, September 21. Shareholders of Diamond Offshore thus profited from a gain of $0.40 per share or 0.58% for the week. The stock opened at $66.96 on Monday, August 27. The stock thus had a trailing four-week gain of $2.28 per share or 3.41%.

DO 5-Day Chart

Source: Fidelity Investments

DO 4-Week Chart

Source: Fidelity Investments

Atwood Oceanics (ATW) opened at $48.67 on Monday, September 17. The stock closed at $46.31 in after-hours trading on Friday, September 21. This gives the stock a loss of $2.36 per share or 4.85% for the week. Atwood opened at $45.77 on August 27. Thus, shareholders in the company experienced a gain of $0.54 or 1.18% 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 $38.32 on September 17, 2012. The stock closed at $37.73 in after-hours trading on Friday, September 21. Thus shareholders suffered a loss of $0.59 or 1.54% for the week. Noble opened at $38.47 on August 27, 2012. Thus, the stock had a trailing four week loss of $0.74 or 1.92%.

NE 5-Day Chart


Source: Fidelity Investments

NE 4-Week Chart

Source: Fidelity Investments

Pacific Drilling (PACD) opened the week at $10.52 on September 17, 2012. The stock closed at $10.04 in after-hours trading on Friday, September 21. Thus, shareholders suffered a loss of $0.48 or 4.56% for the week. Pacific Drilling opened at $9.53 on August 27, 2012. Thus, the stock had a trailing four-week gain of $0.51 or 5.35%. Pacific Drilling extended an option to construct an eighth drillship for its fleet on Wednesday. The company is committed to growing its fleet and this option extension will help to secure that ability.

PACD 5-Day Chart

Source: Fidelity Investments

PACD 4-Week Chart

Source: Fidelity Investments

Overall, these seven stocks delivered mixed performances this week. Four of the seven stocks suffered losses and three of them delivered gains. Of the group, Transocean was the best performer. The other two stocks that delivered gains were Ensco and Diamond Offshore. The worst performer was Atwood Oceanics, although Pacific Drilling came in a very close second place. The seven stocks also delivered mixed results over the trailing four-week period. Pacific Drilling was the best performer over that period and SeaDrill was the worst, even after taking that company's large dividend payment into account. Ensco, Diamond Offshore, Atwood, and Pacific Drilling all delivered gains over the trailing four-week period. The remaining three stocks each handed a loss to investors.

Source: Weekly Performance Update On 7 Offshore Drilling Companies

Additional disclosure: I may acquire a position in PACD on any market correction.