Artyom Zakaryan, CFA • 21 Comments
Jun. 12, 2015, 10:29 AM
- The year-long oil price rout has depressed Pacific Drilling’s (PACD +4.9%) market value by nearly two-thirds, making it an attractive takeover target for operators looking to strengthen their presence in ultra-deepwater drilling, Bloomberg writes.
- PACD already has garnered interest from larger rivals such as Ensco (ESV -1.2%), Transocean (RIG -2.8%) and Seadrill (SDRL -1.9%) in the last 12-18 months, with one of the approaches coming as recently as this year, according to the report.
- PACD is not believed to be actively exploring a sale, but the shares are trading well below replacement value for the rigs that they own, Evercore analyst James West points out.
Nov. 17, 2014, 3:59 PM
- In the wake of Halliburton's (NYSE:HAL) $34.6B offer for Baker Hughes (NYSE:BHI), it appears the next hot sector for M&A action is energy: More consolidation is likely, given the weakness for stocks in the oilfield services subsector, low interest rates, and as a drop in demand for oil increases cutthroat pricing competition.
- Speculation is running rampant as investors try to figure out who is next in an industry that is sure to undergo some more consolidation; some names identified as possible candidates include Kodiak Oil and Gas (NYSE:KOG), Marathon Oil (NYSE:MRO), Northern Oil and Gas (NYSEMKT:NOG), Anadarko Petroleum (NYSE:APC), Pioneer Natural Resources (NYSE:PXD).
- GE could go after National Oilwell Varco (NYSE:NOV) to show it is serious about the energy industry after last year’s purchase of pumpmaker Lufkin, Royal Bank of Canada says, and Oppenheimer says even BP could be an acquisition candidate.
- But Morgan Stanley does not see offshore drillers getting in on the action, as larger players like Diamond Offshore (NYSE:DO), Transocean (NYSE:RIG) and Seadrill (NYSE:SDRL) are still addressing dividend concerns while smaller companies such as Atwood Oceanics (NYSE:ATW) and Pacific Drilling (NYSE:PACD) still trade close to replacement value.
Mar. 20, 2013, 11:14 AM
Transocean (RIG +1.2%) would be better off ignoring Carl icahn's call for a fatter dividend and using some of its extra cash on acquisitions to upgrade its fleet and improve sales growth, some analysts say. Purchasing a company - such as ORIG or PACD - with more modern rigs could help trim RIG’s maintenance costs and allow it to charge higher rates to customers.| Mar. 20, 2013, 11:14 AM | 2 Comments
Nov. 21, 2012, 5:47 PMA midday pop in Pacific Drilling (PACD) based on takeover chatter didn't hold up as shares ended slightly lower, but FT's Bryce Elder thinks there's credibility to the talk. The habitually acquisitive Seadrill (SDRL) posts Q3 results on Monday and has raised more than $2B in the past three months via asset sales and a bond issue, Elder notes. | Nov. 21, 2012, 5:47 PM | 1 Comment