Fri, Feb. 13, 2:44 PM
- It’s not just Seadrill (SDRL -4.7%) - Transocean (RIG +2.3%), Diamond Offshore (DO +1.2%) and others also have rigs working for Petrobras (PBR +5.9%), but analyst Lenny Zephirin is not particularly concerned.
- SDRL said earlier that it was removing $1.1B worth of Petrobras orders from its backlog due to the ongoing corruption scandal affecting the Brazilian company.
- RIG, DO, Ocean Rig UDW (ORIG +0.8%), Paragon Offshore (PGN -1.8%) and Vantage Drilling (VTG -4.4%) all have ultra-deepwater rigs working for PBR, and Zephirin believes those rigs "are not affected."
- The move reflects mostly on the troubles at PBR, the analyst says, perhaps suggesting the company is "losing discipline around their long-term drilling plan."
Tue, Feb. 3, 12:57 PM
- Zephirin Group’s Lenny Zephirin upgrades Seadrill (SDRL +9.3%), Noble Corp. (NE +4.4%) and nearly every other offshore driller in the firm's coverage, citing a significant change in market sentiment as mounting doubt of a recovery of oil prices that had held down share prices of offshore drillers reverses.
- SDRL and Hercules Offshore (HERO +13.1%) are raised to Buy Speculative Risk from Sell, Ocean Rig (ORIG +10.4%) is lifted to Buy High Risk from Sell, NE and Diamond Offshore (DO +0.4%) is upgraded to Hold Speculative Risk from Sell, Ensco (ESV +2.4%) is lifted to Hold High Risk and Vantage Drilling (VTG +8.8%) to Hold Speculative Risk; the already had Buy rating for Transocean (RIG +5.9%) and Rowan (RDC +3.2%).
- Energy stocks are higher across the board as crude oil trades up 4.2% at $51.66/bbl and sits nearly $9/bbl above its January low.
Aug. 8, 2014, 2:39 PM
- Offshore drillers continue to show some resilience after Transocean (RIG +1.6%) reported solid Q2 earnings, but analysts suggest it's too early for investors to jump in.
- Jefferies analysts still see challenges, in particular for RIG's 5th G fleet as rigs scramble down market/incur idle time; also, the potential for prolonged weakness in the North Sea leads the firm to lower estimates for FY 2016 even as it is "modestly more comfortable" that a broader 2016 recovery could still be in play.
- UBS thinks RIG will have to make the decision to either reduce the dividend or increase its debt by 2015; dayrate already are down 25%-40% from peaks levels, and pressure likely will continue given limited rig demand and fierce competition, and regular dropdown proceeds from the MLP probably will not provide quite enough help for RIG's free cash flow.
- SDRL +2.7%, NE +2.9%, ATW +2.2%, RDC +2.3%, VTG +1.6%,ESV +0.3%.
Jul. 30, 2014, 3:10 PM
- Newfield Exploration (NFX -5.1%) and EXCO Resources (XCO -6.4%) are the latest examples of oilfield services and equipment companies that have sold off despite reporting reasonably healthy quarterly results.
- NFX is sharply lower after Q2 earnings missed expectations but revenues beat estimates and rose 40% Y/Y; it even reported a deal for its Granite Wash assets that would bring in $588M.
- XCO also offered mixed Q2 results - a $0.01 earnings miss with a revenue beat - but said increased capex would not result in significant production volumes until 2015.
- Global Hunter - while also downgrading Natural Gas Services Group (NGS +0.3%) and Vantage Drilling (VTG +0.1%) - thinks the market is showing fatigue in the sector, particularly with positive onshore oil service data points that may no longer seem incremental.
Feb. 28, 2014, 9:14 AM
Jan. 23, 2014, 2:18 PM
- Noble Corp. (NE -9.7%) leads a drop in deepwater drilling contractors after saying it is seeing fewer contract opportunities than a year ago and the industry may be experiencing a “pause in the cycle” after years of growth fueled by oil and natural gas discoveries.
- The pace of customer spending growth is expected to be lower this year compared with last year, NE says in its earnings call, and that's with 38 ultra-deepwater rigs around the world looking for work vs. 22 a year ago.
- The market for shallow-water rigs also looks wobbly, as Hercules Offshore (HERO -16.3%) said yesterday in a fleet status report that it suspended plans to reactivate a shallow-water rig in the Gulf of Mexico.
- Also: DO -5.3%, ESV -4.8%, RDC -3.8%, ATW -3.9%, RIG -3.5%, SDRL -2.8%, HP -1.1%, VTG -4.3%, PKD -1.9%.
Jul. 11, 2013, 11:02 AMVantage Drilling (VTG -7.4%) slides after the company announced a proposed $75M offering of convertible senior notes Wednesday. This morning, VTG announced the pricing of the offering (which turned out to be $85M): The notes are convertible at the company's election to ordinary shares at an initial rate of $2.39/ share. The deal has a host of stipulations and conditions that should perhaps be reviewed by shareholders. (PR) | Comment!
Jul. 11, 2013, 9:11 AM
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Feb. 15, 2012, 9:05 AMPremarket gainers: BPAX +51%. IPAS +21%. BCRX +14%. WCG +11%. TSEM +9%. CMCSK +8%. EGLE +7%. CLWR +7%. CMCSA +6%. ANF +6%. HIG +6%. VTG +5%. TTM +4%. K +3%. BCS +3%. DANG +3%. YGE +3%. DMND +3%. MET +3%. ACAS +3%. GNOM +3%. BZH +3%. COF +3%. TEVA +3%. MLU +3%.
Losers: VG -12%. NBG -9%. RENN -8%. NZGA -6%. OC -5%. FXCM -3%. ALU -3%. | Comment!
VTG vs. ETF Alternatives
Vantage Drilling Co is an international offshore drilling company engaged in contract drilling units, related equipment and work crews, on a dayrate basis to drill oil and natural gas wells for its customers.
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