Que, I've got the following figures based on Q3 earnings and today's stock price
NE PSR=4.7, PE=20, Debt=0.29
ESV PSR=5.8, PE=37, Debt=0.29
RDC PSR=3.2, PE=24, Debt=0.47
These figures are all pretty close to one another, so nothing really jumps out.
I've always liked RDC due to their focus on higher spec jackups, although I think they should ditch the aviation group. I suspect when Palmer is gone they will do that. Losing Palmer is a blow too, in my opinion (though not everybody's!) - he always stood for doing the right things for the right reasons, and told Wall Street to stuff it on many occasions. He also poked fun at other drilling company executives that merged companies to line their pockets, rather than to gain the supposed benefits of consolidation - how true.
NE is doing very well due to their successful conversions of low value rigs to high spec rigs. They seem to know the business and do quite well.
ESV always seems to carry a premium on price, which I have never understood. But... since they tend to move the most, they could have big upside. In the last few cycles they got up to absurd PSR levels of around 15. That would be a three bagger from today's level, and probably more as the sales would be rising too in the next boom (maybe 4 or 5 bagger?). But, you already know I don't think today's market will support the same valuation levels in the next boom that we got last time around, so perhaps we'll get half that?
Hard to pick just one, If you've just got to be 'in' maybe a basket would be best? I'm still waiting for a market swoon to load up on drillers, should peace break out I'll surely get it.
Sharp |
