McDermott +4% after winning offshore subsea contract from Hess

• McDermott (MDR +3.7%) is on the move after announcing a contract award from Hess (HES +0.6%) for subsea tieback work for its deepwater Penn State Deep field in the Gulf of Mexico.
• Financial details are not disclosed, but MDR says the lump sum contract will be reflected in its Q1 2017 backlog.
• Hess recently announced a 2017 E&P capex budget of $2.25B, with $375M earmarked for production activities in the deepwater Gulf of Mexico, including the drilling and completion of a production well at the Penn State field.