Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

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

To: Chuzzlewit who wrote (17851)	4/3/1998 8:26:00 AM
From: Big Dog	Read Replies (3) \| Respond to of 95453

That's true Paul, but don't forget the risk involved. What if day rates slip. Or what if they only get 60% utilization. What if they lose a riser, string and BOP and it takes 6 months to get a new one and they don't have revenue for that period? Anything can and will happen. Plus, if the fleet is not added to, it will help maintain high rates by checking supply. I think it would be a big boost to the market if 5-6 drillers initiated aggressive buyback programs. Of course they probably won't as they have much too big egos that causes them to build bigger companies by adding more rigs. History has a way of repeating itself. The cash you mention may be just the cash on hand today. They are adding to that pile at a very rapid rate and could sustain a regular buy back program that would, over time, be significant.