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The overall market, as measured by the S&P 500 index, showed broad gains over the past week. These gains did not come smoothly, however. Prices spiked up immediately following Monday's open then slowly declined throughout the day. Prices then spiked after hours before falling on Tuesday, followed by a recovery on the end of the day. The index trended higher, slowly, on both Wednesday and Thursday, including after hours spikes on both days. Friday saw a decline in the index but it was not sufficient to erase all the gains over the week, causing the index to close higher for the week than it opened. The trend was somewhat different in the oil market, however. Oil prices showed a loss over the past week. Overall, oil prices were relatively flat until midday Wednesday, when prices fell significantly. Thursday showed that fall reversing itself with sharp gains in the price. Friday witnessed another decline but it was not as sharp as Wednesday's decline. As usual, these overall market trends had different impacts on the share prices of the seven offshore drilling companies that I track in this series.

SeaDrill (SDRL) opened on Monday, October 1 at $39.96. The stock closed at $39.24 in after hours trading on Friday, October 5. SeaDrill shareholders thus suffered a loss of $0.72 or 1.80% over the past week. SeaDrill opened at $40.51 on September 10, 2012. This gives the stock a trailing four-week loss of $1.27 per share or 3.14%. Earlier this week, SeaDrill announced a change in management. Long-time CEO Alf Thorkildsen, who basically saw the company get transformed from a small offshore driller with a handful of ships into the titan that it is today, will be stepping down from his position as CEO to be replaced by Fredrik Halvorsen, CEO of Archer Ltd. An article at Investopedia suggests that this will make little difference to the company. The author's arguments make a lot of sense. I will admit to being somewhat concerned about this, but SeaDrill does have a very active board which is not changing at all. This ultimately could prevent the normal transitional pains that occur when a company loses a great CEO.

SDRL 5-Day Chart

Source: Fidelity Investments

SDRL 4-Week Chart

Source: Fidelity Investments

Ensco (ESV) opened at $54.98 on Monday, October 1. The stock closed at $54.26 in after hours trading on Friday, October 5. Shareholders thus suffered a loss of $0.72 or 1.31% over the past week. The stock opened at $57.09 on September 10. Stockholders in the company thus suffered a loss of $2.83 or 4.96% over the trailing four-week period. Stock rating website TheStreet.com reiterated its BUY rating on Ensco stock, citing high revenue growth and high profit margins.

ESV 5-Day Chart

Source: Fidelity Investments

ESV 4-Week Chart

Source: Fidelity Investments

Transocean (RIG) opened at $46.08 on Monday, October 1. The stock closed at $45.21 in after hours trading on Friday, October 5. Transocean's shareholders thus suffered a loss of $0.87 or 1.89% this week. The stock opened at $47.98 on September 10. This gives Transocean stock a loss of $2.77 or 6.13% over the trailing four-week period. Transocean won a ten-year contract from Royal Dutch Shell (RDS.A) for the construction of, then subsequent leasing of, four ultra-deepwater drillships. This deal adds approximately $7.6 billion to Transocean's already huge backlog, excluding the mobilization fees for the rigs. Building these four rigs will cost Transocean approximately $3 billion. This contract is a very good deal for the company and highlights just how tight the ultra-deepwater market is right now.

RIG 5-Day Chart

Source: Fidelity Investments

RIG 4-Week Chart

Source: Fidelity Investments

Diamond Offshore (DO) opened at $66.56 on Monday, October 1. The stock closed at $65.98 in after hours trading on Friday, October 5. Shareholders of Diamond Offshore thus suffered a loss of $0.58 per share or 0.88% for the week. The stock opened at $67.29 on Monday, September 10. The stock thus had a trailing four-week loss of $1.31 per share or 1.95%.

DO 5-Day Chart

Source: Fidelity Investments

DO 4-Week Chart

Source: Fidelity Investments

Atwood Oceanics (ATW) opened at $45.70 on Monday, October 1. The stock closed at $45.60 in after hours trading on Friday, October 5. This gives the stock a loss of $0.10 per share or 0.22% for the week. Atwood opened at $47.99 on September 10. Thus, shareholders in the company experienced a loss of $2.39 or 4.98% 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 $36.06 on October 1, 2012. The stock closed at $35.25 in after hours trading on Friday, October 5. Thus shareholders suffered a loss of $0.81 or 2.25% for the week. Noble opened at $37.02 on September 10, 2012. Thus, the stock had a trailing four week loss of $1.77 or 4.78%. Stock ratings site TheStreet.com reiterated its BUY rating on Noble stock on Monday, citing growth in revenue and net operating cash flow.

NE 5-Day Chart


Source: Fidelity Investments

NE 4-Week Chart

Source: Fidelity Investments

Pacific Drilling (PACD) opened the week at $10.02 on October 1, 2012. The stock closed at $9.87 in after hours trading on Friday, October 5. Thus, shareholders suffered a loss of $0.15 or 1.50% for the week. Pacific Drilling opened at $9.70 on September 10, 2012. Thus, the stock had a trailing four week gain of $0.17 or 1.75%. Pacific Drilling is thus the only one of these seven stocks to show a gain over the trailing four-week period.

PACD 5-Day Chart

Source: Fidelity Investments

PACD 4-Week Chart

Source: Fidelity Investments

Investors in all seven of these stocks saw losses over the past week. Of these, the best performer, and thus the stock with the smallest loss, was Atwood Oceanics. The worst performer was Zug, Switzerland-based Noble Corporation. All but one of these stocks saw a trailing four-week loss. That stock was Pacific Drilling, which posted a gain over the last four weeks. The likely reason for this outperformance is due to the company exercising an option to purchase an eighth drillship, thus disproportionately positively affecting its forward revenue and profit potential. The worst performer over the trailing four-week period was Transocean.

Source: Weekly Performance Update On 7 Offshore Drilling Stocks

Additional disclosure: I may acquire a long position in Pacific Drilling on any dips.