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Gold/Mining/Energy : Strictly: Drilling and oil-field services -- Ignore unavailable to you. Want to Upgrade?

To: Think4Yourself who wrote (54820)	11/16/1999 12:35:00 PM
From: Winkman777	Respond to of 95453

SSB speaks: RIG and FLC ssb report on rig by: market_guy (M/Big D suburb) 11/16/1999 10:35 am EST Msg: 9587 of 9587 Salomon Smith Barney Tuesday, November 16, 1999 --SUMMARY:--Transocean Offshore Inc.--Offshore Drilling By year-end, we anticipate Transocean will complete its merger with Sedco-Forex Offshore. Transocean Sedco-Forex will have the largest deepwater market share (23%), with a strong presence in all major producing basins. In our opinion, a technically advanced fleet will yield industry leadership as offshore drilling moves into deeper waters. We believe deepwater rig demand will rise sharply in 2001, offering Transocean strong earnings potential. Our initial 2000 and 2001 EPS estimates for Transocean Sedco-Forex are $1.00 and $2.40, respectively, compared to $1.25 and $2.25 for Transocean stand-alone. We reiterate our 1M investment rating and $44 price target. Salomon Smith Barney Tuesday, November 16, 1999 --SUMMARY:--R&B Falcon--Offshore Drilling R&B Falcon operates the world's largest offshore rig fleet, with 23 deepwater rigs, 42 jackups, and 59 other shallow water units. An ambitious expansion plan has built significant debt; however,liquidity issues have been resolved, in our opinion, and capital spending plans funded. FLC has among the strongest operating leverage in our coverage universe, particularly to domestic shallow water and worldwide ultra-deepwater. Recent rig farm-outs at $180,000-$195,000 day rates suggest that ultra-deepwater demand is rising faster than expected, and mat cantilever jackup prices have doubled in the last two months. *We are raising our investment opinion to 2H from 3S. Our new target price is $17, up from $13, based on 6.5x 2001 EV/EBITDA.