Strictly: Drilling and oil-field services Message Board

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Gold/Mining/Energy : Strictly: Drilling and oil-field services

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To: SliderOnTheBlack who wrote (54106)	11/7/1999 12:52:00 PM
From: Mark Adams	Read Replies (2) of 95453

RIG vs DO, Deepwater drillers Was looking at picking up some RIG at 25 1/2, but I see that their current ration is near 1 (per yahoo), vs 5 for DO. Given that their deepwater exposure might mean lower revenues and profitability yet to come, I suspect there is some risk of violation of financial covenants. I haven't done the research to verify what their long term debt picture looks like, so may be all wet. But I noted that when companies reclassify long term debt as current obligations the very survival of the company comes into quesiont, not to mention very poor stock performance. Does anyone else out there see a risk in holding RIG long term?

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