GlobalSantaFe (IL/A): Raising estimates + est fair value to $44 on bullish fleet status Goldman - Sachs March 07, 2005
We are raising our 2005-06E EPS estimates for GSF to $1.35/$2.21 from $1.30/$2.08 following a bullish fleet status released mid-Friday. We are also raising our fair value estimate to $44 (11.5x 2006 EV/EBITDA) from $42, which implies 14% upside potential. We continue to prefer RIG and DO, both rated Outperform, because of greater exposure to deepwater. For investors looking for exposure to the jackup mkt, ESV (IL/A) has purer exposure.
Key takeaways from the GSF fleet status are: (1) 250'C Gulf jackup High Island I received a 1-month contract at $55k, only slightly ahead of our expectations but achieving what we believe is the current high water mark for that class of rig. (2) W. Africa 2nd/3rd generation semi Rig 135 received a 6-month contract at $125k vs. our $100k. (3) US Gulf drillship GSF Explorer was contracted at $235k for six months beginning late 05 vs. our $160,000.
I, Terry Darling, hereby certify that all of the views expressed in this report accurately reflect my personal views about the subject company or companies and its or their securities. I also certify that no part of my compensation was, is, or will be, directly or indirectly, related to the specific recommendations or views expressed in this report. |
