Silicon Investor - Transocean (RIG)

[golfer72] I've been riding the RIG train since like 2.75 or so. I've sold to lock in prof...

golfer72 — 2/20/2026 8:51:09 PM

I've been riding the RIG train since like 2.75 or so. I've sold to lock in profits along the way but still hold some

[Jon Koplik] TRANSOCEAN LTD. REPORTS FOURTH QUARTER AND FULL YEAR 2025 RESULTS .................

Jon Koplik — 2/20/2026 2:11:06 PM

TRANSOCEAN LTD. REPORTS FOURTH QUARTER AND FULL YEAR 2025 RESULTS .....................

STEINHAUSEN, Switzerland -- February 19, 2026 -- Transocean Ltd. (NYSE: RIG) today reported financial results for the fourth quarter and full year of 2025. The Company will hold a conference call and webcast at 9 a.m. EST, 3 p.m. CET, on Friday, February 20, 2026, to discuss the results, with participation details included in this release. In addition, supplemental slides have been posted to the Investors section of the Company’s website at www.deepwater.com.

2025 Key points

Operating revenues were $3.965 billion, up 13% from $3.524 billion in 2024.

Revenue efficiency(1) was 96.5%, up from 94.5%.

Net loss attributable to controlling interest was $2.915 billion, $3.04 per diluted share.

Adjusted EBITDA of $1.37 billion, up from $1.148 billion or 19%.

Cash flows from operations were $749 million, up $302 million or 68%.

Free cash flow was $626 million, up $433 million from $193 million.

Total principal amount of debt reduced to $5.686 billion, down $1.258 billion or 18%.

Total liquidity of $1.507 billion, including undrawn revolving credit facility.

Added $839 million in contract backlog(2) at a weighted average dayrate of $453,000.

“During 2025, we took significant strides to strengthen our capital structure, sustainably lowering costs, and ensuring we continue to deliver best in class service to our customers around the world,” said President and Chief Executive Officer, Keelan Adamson. “At just shy of 98%, we delivered our best uptime performance on record while making significant progress in strengthening our balance sheet by retiring approximately $1.3 billion in debt principal and saving nearly $90 million in annualized interest expense.

“In 2026, Transocean achieves its 100th year as a company. As we proudly celebrate this centennial milestone, our primary objective will be to exceed our customers’ expectations by delivering safe, efficient, and reliable operations, thereby creating value for our shareholders.

“We believe that our recently announced definitive agreement to combine with Valaris is entirely consistent with these objectives. Customers and investors alike will benefit from the expanded fleet of best-in-class, high-specification rigs and strong pro forma cash flow which improves our financial flexibility, enables accelerated debt reduction, and continued investment in our people, assets, and technologies to enhance the delivery of our services.”

------------------------------------

END.

.
.
.

[Jon Koplik] Transocean to Acquire Valaris .....................................................

Jon Koplik — 2/9/2026 10:58:35 AM

Transocean to Acquire Valaris ..................................................................

Creates the world’s highest-quality, highest-specification offshore drilling fleet

Companies to host conference call today at 8 a.m. CT / 9 a.m. ET

STEINHAUSEN, Switzerland and HAMILTON, Bermuda, Feb. 09, 2026 (GLOBE NEWSWIRE) -- Transocean Ltd. (NYSE: RIG) and Valaris Limited (NYSE: VAL) today announced the signing of a definitive agreement to combine the two companies under which Transocean will acquire Valaris in an all-stock transaction valued at approximately $5.8 billion (all currency in USD). The shareholding percentages of the combined company, on a fully diluted basis1, will be approximately 53% for Transocean and 47% for Valaris. The enterprise value of the pro forma company is approximately $17 billion.

Highlights

Creates an industry leader with a diversified offshore fleet of 73 rigs, including 33 ultra-deepwater drillships, nine semisubmersibles and 31 modern jackups, to meet emerging growth opportunities
Expands reach and customer access in world’s most attractive offshore basins
Unlocks more than $200 million in identified cost synergies, additive to Transocean’s ongoing cost savings initiative
Increases cash flow, accelerates deleveraging and strengthens financial flexibility
Estimated pro forma market capitalization of $12.3 billion
Improves trading liquidity and capital markets profile, including an expanded investor base and opportunities for additional equity index inclusion

“This transaction creates a very attractive investment in the offshore drilling industry, differentiated by the best fleet, proven people, leading technologies, and unequalled customer service,” said Keelan Adamson, Transocean President and Chief Executive Officer. “The powerful combination is well-timed to capitalize on an emerging, multi-year offshore drilling upcycle. Investors and our global customers will benefit from our expanded fleet of best-in-class, high-specification rigs. We have identified more than $200 million in cost synergies that will complement our ongoing efforts to safely lower costs. The strong pro forma cash flow enables us to accelerate debt reduction, resulting in an expected leverage ratio of about 1.5x within 24 months of the transaction closing.”

Valaris Chief Executive Officer Anton Dibowitz said, “By combining with Transocean, we will create a new industry leader for the benefit of our shareholders, customers and employees. We look forward to complementing Transocean’s high-specification deepwater assets with our own, while returning world class jackup expertise to Transocean’s business, creating a combined company that is capable of operating any rig at any water depth in any offshore environment around the world.”

A powerful combination

The transaction brings together highly complementary, premium offshore assets. On a pro forma basis, the company will own 73 rigs able to serve customers in deepwater, harsh environment, and shallow water basins around the world.

An industry-leading combined backlog of approximately $10 billion enhances Transocean’s cash flow visibility. In addition to Transocean’s ongoing cost-reduction program, which is expected to reduce costs by more than $250 million in aggregate through 2026, identified incremental transaction-related synergies of more than $200 million will strengthen Transocean’s financial flexibility.

Transocean’s senior management team will be led by CEO Keelan Adamson, and Jeremy Thigpen will serve as Executive Chairman of the Board. The board will be comprised of nine current Transocean directors and two current Valaris directors. Transocean will remain incorporated in Switzerland, with its primary administrative office in Houston.

Structure and Conditions

Under the terms of the all-stock transaction, Valaris shareholders will receive a fixed exchange ratio of 15.235 shares of Transocean stock for each common share of Valaris. Based on the closing prices of Transocean and Valaris on February 6, 2026, the transaction implies a combined enterprise value of approximately $17 billion.

Upon completion and on a fully diluted basis, Transocean shareholders will own approximately 53% of the combined company, with Valaris shareholders owning the remaining 47%.

The transaction will be carried out by way of a court-approved scheme of arrangement under the Companies Act 1981, as amended, of Bermuda (the “Bermuda Companies Act”).

The transaction was unanimously approved by the boards of directors of both companies and is expected to close in the second half of 2026, subject to regulatory approvals and customary closing conditions, and approvals by the shareholders of each company. The parties received shareholder support agreements from Perestroika AS which owns approximately 9% of the shares outstanding of Transocean, and Famatown Finance Limited and Oak Hill Advisors, which collectively own approximately 18% of Valaris’ outstanding shares, committing to vote in favor of this transaction.

Transaction Advisors

Evercore is acting as lead financial advisor to Transocean. Hogan Lovells, Homburger, and Appleby (Bermuda) Limited are acting as legal advisors to Transocean. DrivePath Advisors is Transocean’s financial communications consultant. Goldman Sachs & Co. LLC and Skadden, Arps, Slate, Meagher & Flom LLP, Lenz & Staehlin, and Conyers Dill & Pearman Limited are financial advisors and legal advisors, respectively, to Valaris. Joele Frank, Wilkinson Brimmer Katcher is serving as strategic communications advisor to Valaris.

-------------------------

END.

.
.
.

[Jon Koplik] Offshore Daily -- US Gulf drillship fleet could be heading into rough waters .....

Jon Koplik — 3/29/2025 9:39:11 PM

Offshore Daily -- US Gulf drillship fleet could be heading into rough waters .....................

March 26, 2025

Analysis: US Gulf drillship fleet could be heading into rough waters

A looming dip in demand is due to rising project costs and supply chain challenges, according to Westwood.

Newly released! 2025 US Gulf of Mexico Map

Offshore highlights crude and natural gas fields in the US Gulf of Mexico as well as pipeline and lease operators.

The US Gulf drillship sector is facing a lull in activity not seen since 2018, according to the latest Westwood Insight report.

With marketed utilization for this segment staying above 90% since mid-2021, near-term availability in the region “has been very tight,” says the author Cinnamon Edralin, who serves as Americas Research Director for Westwood Global Energy Group.

For the period from October 2021 through April 2023, marketed utilization stood at 100%. As of early March 2025, marketed committed utilization, which Westwood defines as units available for work that are either currently under contract or have a future contract in place, is 91% for drillships in the US Gulf.

However, several units are poised to roll off charter this year without follow-up jobs lined up yet. This pending drop-off in activity is steep and could see the region’s utilization rate decrease to 70%.

The US Gulf counts many of the world’s highest specification drillships among its fleet and generally commands some of the highest day rates in the world for units working in benign waters. The region’s total drillship supply is 23, all of which are marketed.

Three of the region’s drillships are sixth-generation units, and two are the world’s only eight-generation drillships outfitted with 20,000 psi BOPs and other equipment for high-pressure/ high-temperature wells. The other 18 are seventh-generation units. Drillships used in the region tend to have high hookloads, dual seven-ram BOPs configured to meet US regulatory requirements, and dual activity drilling systems, among other capabilities.

Idle high spec units

At present, two ultra-deepwater drillships – the seventh-generation Deepwater Invictus and the sixth-generation Noble Globetrotter II – are not working. However, Deepwater Invictus is undergoing preparations ahead of starting its next three-year contract in April 2025. Meanwhile, Noble Globetrotter II last worked in April 2024.

Additionally, the sixth-generation drillship Noble Globetrotter I is currently firm until around April, but it has pending options that could keep it going into August, placing it in danger of becoming idle this year, alongside sister rig Noble Globetrotter II. Noble Corporation recently noted that it has effectively removed these two units from competing for drilling work, instead focusing on bidding the two rigs into well intervention programs and other select opportunities.

Seventh-generation units Deepwater Conqueror and Noble Valiant are also facing idle periods potentially starting around April, although Deepwater Conqueror already has another job lined up. The Deepwater Conqueror has a target start date in October for its next job that will keep it working for another year, leaving a gap of several months between assignments.

Next, seventh-generation units Noble BlackRhino and Valaris DS-18 are both due to roll off hire around August, followed by West Vela and Stena IceMAX in September. None of these have confirmed new work as of the time of writing.

Should the region reach the fourth quarter with seven units off-hire, this would drop the marketed utilization rate to 70%. The last time US Gulf drillship utilization was this low was in mid-2018, which was during the extended global industry downturn. At the time, the marketed supply was a little higher than now at 25 units, and the committed count was 17.

.

US Gulf drillship fleet heading into rough waters

Because the drillships in the region have such high specifications, moving them to other regions would typically result in them not using their full capabilities, thereby lowering the day rate potential they can command in the US Gulf.

Currently, global demand outside the region “does not support an influx of very high-specification drillships for term work,” Edralin noted. “Therefore, we expect most of the units that roll off charter in the US Gulf this year to remain in place for opportunities on the horizon for 2026. Market chatter currently suggests the region may see the departure of one of the lower-specifications units, if new work in the US Gulf is not confirmed.”

Dip in demand

So, what is contributing to the sudden near-term gaps for so many units? A combination of factors that we are seeing globally and locally have led to what should be a short-term dip in activity in the US Gulf region. These include rising overall project costs (not just rig dayrates) and continued supply chain challenges that mean some long-lead items are taking longer to arrive, resulting in adjusted project schedules to better align development drilling with development equipment installation.

Further complicating the landscape in the US Gulf is the shrinking number of active operators. In 2015, there were 17 active operators that used one or more drillships during the year. By comparison, in 2024, the total number of active drillship operators had dropped to nine. Some of these operators have been swallowed up in various mergers and acquisitions, while others transitioned to onshore portfolios, and others simply are not currently undertaking an offshore drilling campaign.

“Additionally, we should consider 2015 semisub demand, which was 12,” Edralin commented. “Over time, operator preference in the region has shifted primarily to drillships when it comes to floating rig selections. Currently, there is only one active semisub working in the region. When reviewing the list of active semisub operators in 2015, an additional eight companies not previously counted on the drillship list are added, although not all these are surviving entities today.”

While some operators with pending plug and abandonment obligations may see this near-term white space as an opportunity to seek a rig at a more attractive rate, having fewer active operators means a decreased likelihood of several coming forward to take advantage of potentially lower-priced gap-filler slots. Further challenging the 2025 schedule is that operator budgets for this year have already been set, leaving little wiggle room for unplanned drilling programs. Furthermore, most operators are already looking to their plans for 2026 and beyond.

.

Demand outlook for 2026

With regard to Westwood’s demand outlook for US Gulf drillships for next year, Edralin says that their RigLogix database is currently tracking over 3,600 days of work with target start dates in 2026. The majority of this is expected to be against the renewal of rigs rolling off charter, rather than incremental work.

Because some of the region’s smaller independent oil companies tend to run rig lines of between one and two units per year, Edralin notes that some gaps between assignments are to be expected. However, as noted earlier, having fewer active operators in the region reduces the number of companies that may emerge with unanticipated new requirements.

While the second half of 2025 will be challenging for US Gulf drillships that roll off charter, most are expected to ride out the rough waters in anticipation of more work in 2026 and a return to tight utilization. “Longer term, the US Gulf will remain one of the top locations in the world for drillship activity,” Edralin said.

© 2025 Endeavor Business Media, LLC.

.
.
.

[Jon Koplik] Bloomberg -- Transocean discussing merger with rival Seadrill as offshore dow...

Jon Koplik — 10/23/2024 9:44:27 PM

Bloomberg -- Transocean discussing merger with rival Seadrill as offshore downturn eases ....................

Bloomberg

October 23, 2024

Transocean Discussing Merger With Rival Seadrill as Offshore Downturn Eases

--------------------------------

Seadrill’s shares jump 10% in late trading, Transocean also up

Talks come as offshore exploration rebounds with steady prices

By David Carnevali, Dinesh Nair, and David Wethe

Transocean Ltd. is in talks to merge with rival offshore drilling contractor Seadrill Ltd., according to people familiar with the matter, just as oil explorers around the world are returning to the sea.

Shares of Seadrill jumped about 10% after the close of regular trading in New York while Transocean’s were up about 3.7%.

Discussions are ongoing about the potential structure of a combination, said the people, who asked to not be identified because the details are private. A final decision on pursuing a deal hasn’t been made and the companies could opt to remain independent, they said.

A representative for Transocean didn’t respond to requests for comment. A spokesperson for Seadrill declined to comment.

Transocean, with headquarters in Switzerland, had seen its shares fall 35% this year through the close of regular trading Wednesday, giving the company a market value of about $3.6 billion. Hamilton, Bermuda-based Seadrill had been down 26% since Jan. 1, giving it a market value of $2.4 billion.

Once the world’s two biggest offshore drillers, both Transocean and Seadrill have lagged as rivals bulked up and a protracted offshore drilling downturn forced many contractors into bankruptcy. Transocean, which owned the Deepwater Horizon rig involved in BP Plc’s Macondo well blowout in the Gulf of Mexico, was the only major offshore rig contractor to avoid bankruptcy during the 2020 downturn.

Offshore Boom

Now offshore drilling, particularly in deep water, is once again booming thanks to steady oil prices and slower production growth from US shale fields.

Offshore drilling services provider Helix Energy Solutions Group Inc. is also exploring strategic options, including a potential sale, Bloomberg News reported this month. The Houston-based company, with a market value of about $1.4 billion, has been working with advisers to gauge interest from potential buyers.

Major oilfield service companies are pivoting to more work in international and offshore fields amid the shale activity slowdown brought on by industry consolidation, low natural gas prices and pressure to keep spending in check and return profits to shareholders.

SLB, the world’s biggest oilfield-services provider, sees the potential for more than $500 billion in commitments to offshore projects from 2023 through 2026.

Noble, Diamond

Unlike the booming consolidation wave sweeping up global oil producers in the past year, offshore-driller merger activity has been far more muted. Noble Corp. became the world’s biggest offshore driller by market value after acquiring rivals Diamond Offshore Drilling Inc. this year and Maersk Drilling in 2022.

Merging with Seadrill would fit Transocean’s strategy of growing its list of backlog work, utilizing some of the world’s most advanced rigs capable of drilling in water more than two miles deep.

© 2024 Bloomberg L.P.

.
.
.

[Chartgod] just cyphering i do own +++++++++ [graphic] ++++++++ [graphic] ++++++++++++ [...

Chartgod — 7/24/2024 10:46:58 AM

just cyphering

i do own
+++++++++

++++++++

++++++++++++

[E. Graphs] Chart broken. I'm out. Placing the cash in high yield fixed income until better ...

E. Graphs — 2/6/2024 10:46:54 AM

Chart broken. I'm out. Placing the cash in high yield fixed income until better opportunities come along.

[E. Graphs] Adding here at ~5.29 or lower. Let's see.

E. Graphs — 1/18/2024 8:45:28 AM

[E. Graphs] Started building a long term position again here at the close. The stock is trad...

E. Graphs — 12/6/2023 5:38:36 PM

Started building a long term position again here at the close. The stock is trading near the 100wma after breaking out of a long base. Currently trading at ~5.74 with the 100wma at ~5.30, so if the pullback moves lower I will probably add. The stock also looks to be filling a gap from the breakout in June. Somebody loaded a lot of June calls today. Will need to verify tomorrow. Long term charts still look very good. I plan to hold through 2024 as long as the company continues to reduce debt and win contracts with higher day rates.

Go RIG!

[E. Graphs] Nice gap fill today. Strong sector.

E. Graphs — 9/5/2023 3:33:30 PM

[E. Graphs] RIG chart shows a classic breakout from a very long base. It's good to see it pu...

E. Graphs — 8/22/2023 7:40:18 PM

RIG chart shows a classic breakout from a very long base. It's good to see it pull back some after earnings season. I'll be rebuilding my position with an eye on the market. Good volume.

[Jon Koplik] Oil & Gas Journal -- Offshore rig market enters new growth cycle ..................

Jon Koplik — 8/18/2023 2:13:15 PM

Oil & Gas Journal -- Offshore rig market enters new growth cycle ...................................

Aug. 17, 2023

IEA: Offshore rig market enters new growth cycle

By OGJ editors

The offshore rig market is experiencing a period of rapid growth, driven by notable advancements in Guyana, Brazil, and the Middle East, infill drilling activities in West Africa, and renewed exploration in Namibia, India, and the Eastern Mediterranean, according to the International Energy Agency (IEA).

“The last offshore activity cycle peaked in 2014 and declined through 2021. But after working through the disruptive effects of COVID-19, the offshore rig market -- split between floating and jackup rigs -- is back on an upward trajectory,” IEA said.

More than 65 licensing rounds and over $200 billion in deepwater project final investment decisions have been scheduled from 2022-25, with 85% having a breakeven price of less than $50/bbl, consultants Wood Mackenzie recently noted. This, combined with barrels that tend to be low cost and low carbon intensity with technology-led efficiencies, is bolstering the offshore sector.

“Global offshore spending dropped from over $330 billion in 2014 to around $140 billion in 2021. At the same time, rig utilization rates fell from approximately 100% to 70%. But investment is now approaching $200 billion thanks mostly to a strong recovery in floating rigs, including semisubmersibles and drillships that can drill in depths of up to 3,050 m (10,000 ft) and 3,660 m (12,000 ft), respectively,” IEA said.

“Since the 2014 peak, the offshore fleet has been rationalized and consolidated from 270 floating rigs to 146, with 124 floaters now active. Utilization has recovered to 87% with 22 rigs idled, of which 20 may enter service in the coming years.”

Demand for floating rigs dropped to 107 in 2021 from 257 in 2014 while day rates for the non-harsh ultra-deepwater segment declined to less than $200,000/day from peaks of over $500,000/day. Current new contract day rates are back to around $450,000/day, having increased roughly 30% y-o-y. High-spec ultra-deepwater and harsh environment rigs are fully booked for the first time since 2014. Petrobras, Shell, and ExxonMobil are the top three customers in the floating rig market, accounting for one-third among them.

Commercial interest for shallow water jackup rigs that are supported by the ocean floor has been lagging the floating rig market, but a rebound is under way with utilization rates currently at 92%. Differing from floating rigs, the harsh and ultra-harsh jackup rig demand is looser than the total market, with respective utilization rates of 89% and 81%. Saudi Arabia, China, the UAE, and India drive the segment’s demand this year and next, with combined market share of 55%. Saudi Arabia and the UAE are seeking rigs mainly for development wells. India’s needs are for exploration and appraisal (E&A) and development work while China is primarily focused on E&A wells.

© 2023 Endeavor Business Media, LLC.

.
.
.

[E. Graphs] I'm taking profits. I don't like the double tops markets are putting in even tho...

E. Graphs — 8/10/2023 12:53:23 PM

I'm taking profits. I don't like the double tops markets are putting in even though I could be wrong or early. GLTA

[E. Graphs] Global Hunt for Crude Sends Offshore Oil Stocks Soaring 8:00 am ET July 24, 2023...

E. Graphs — 7/24/2023 11:33:20 AM

Global Hunt for Crude Sends Offshore Oil Stocks Soaring
8:00 am ET July 24, 2023 By Bob Henderson WSJ
Offshore oil stocks are pumping out big gains, lifted by investors betting the future of energy production lies in deep water.

Shares of firms that drill and service offshore oil and gas wells have surged about 35% so far this year, outpacing the S&P 500’s 18% climb. The gains come even as sagging fossil-fuel prices have dented the shares of producers such as Exxon-Mobil and Chevron and dragged the S&P 500 energy sector down 4.1% for the year, among the worst performing groups in the index.

The offshore club includes contractors such as Noble and Transocean that lease drillships and other rigs to producers, and whose stocks have climbed by 36% and 78% respectively since December. It also includes TechnipFMC, which fashions plumbing for underwater wells, and Oceaneering International, which rents robotic vehicles to service such wells, which have notched gains of 43% and 32% respectively.

The companies are profiting from a Rising global demand for petroleum boom that has been building steam since 2021 and which has recently spawned a series of eye-popping contracts with producers. drove many drillers into bankruptcy. Rising global demand for petroleum and a growing recognition that an increasing fraction of the world’s fossil fuels will come from underseas are keeping contractors busier than they have been since 2014, when an oil crash sparked a seven-year downturn that drove many drillers into bankruptcy.

Ocean rigs are scarce, and rates are rising sharply. Transocean’s stock jumped nearly 7% last Tuesday after the company reported a three-year, $518 million contract to deploy one of its drillships in the Gulf of Mexico. The deal was the latest in a series of large transactions announced over the past two months that will pay drillers $480,000 a day or more for their rigs, roughly 50% higher than a year ago and about triple the downturn’s lows.

Oil-and-gas producers are scrambling for rigs and booking them increasingly far in advance, said Dave Smith, an equity analyst at Pickering Energy Partners. Some recent deals don’t start until 2026 and some producers are looking to lock in rigs as far as 10 years into the future.

“It’s not just one place. It’s West Africa, Brazil, Southeast Asia,” said Smith. “They don’t know what oil prices will be in 2026, ’27, ’28. But they’re still willing to commit to the rig right now to ensure they have it.”

Noble recently announced that it was initiating the first quarterly dividend of any offshore driller in years. Transocean—a rare driller to have avoided bankruptcy during the crisis—has been paying down debt and has said it is aiming to reduce its remaining debt of about $7.6 billion by as much as $3 billion.

The U.S. shale boom has driven global oil supply growth for much of the past decade, but appears to have passed its prime, said Rebecca Babin, senior energy trader at CIBC private wealth. The need to compensate for a recent lack of investment could also power the current upturn for at least another five to seven years, she said.

“People are starting to pay a lot more attention to offshore,” Babin said. “There’s money flowing into it, and it’s a hotter topic than it’s been in years.”

Cash is chasing opportunity. Forty of the top 50 hydrocarbon discoveries made since 2010 are offshore according to consulting firm Rystad Energy, and undersea reserves account for nearly 70% of newfound, non-shale resources in the past few years. Rystad estimates annual investment in offshore exploration and production to balloon to over $200 billion over the next few years, the highest since 2016.

Major offshore oil and gas finds have been made in Brazil, Guyana, Namibia, Egypt, Israel and Cyprus in recent years. Earlier this month, a Norwegian oil company announced that it had made the largest hydrocarbon discovery on Norway’s continental shelf since 2013.

National oil companies including Saudi Arabian Oil, or Aramco, and Brazil’s Petróleo Brasileiro, known as Petrobras, have aggressively ramped up their offshore activity and now account for most of the investments being made.

But big public players are also seeking to bolster their long-term resources. Exxon-Mobil leads a consortium drilling one of the world’s biggest reserves off the coast of Guyana. European majors BP and Shell are expanding production in the Gulf of Mexico, having recently re-emphasized fossil fuels over renewables.

To be sure, sliding oil and gas prices have led onshore drillers to idle rigs recently. Energy stocks are often volatile because they can swing with the price of oil and many posted large gains last year that analysts say could unravel if crude slides further.

But the long-term nature and robust economics of offshore projects makes them less far vulnerable to market volatility, said Kurt Hallead, an equity analyst at The Benchmark Company.

Eighty-five percent of planned projects over the next few years are viable at oil prices below $50 a barrel, according to oil-services giant SLB. Brent crude, the international benchmark for petroleum pricing, is currently trading for about $81 a barrel.

“It makes sense all day long for these companies to put money into offshore projects,” said Hallead.

Even offshore club members that don’t rent rigs, such as TechnipFMC, are benefiting from extended project timelines. The company’s chief executive officer, Douglas Pferdehirt, speaking at a conference last month, said he expects his company’s subsea revenue to exceed $25 billion over the three years between 2023 and 2025, and that it is already racking up orders as far out as 2030.

“The party is not over in 2025,” he said.

[E. Graphs] I like the chart :)

E. Graphs — 10/10/2021 3:20:19 PM

[FJB] [graphic] Transocean finds work for five drillships and four semi-subs Transoce...

FJB — 7/24/2021 5:04:22 AM

Transocean finds work for five drillships and four semi-subs
Transocean finds work for five drillships and four semi-subs
PROJECT & TENDERS
July 22, 2021, by Nermina Kulovic
Since its previous fleet status report in April 2021, offshore drilling contractor Transocean has secured contracts for five of its drillships and four semi-submersible rigs, boosting its backlog to $7.3 billion.

In its latest fleet status report, published on Wednesday 21 July, Transocean reported that BHP had exercised a one-well option for the Deepwater Invictus drillship in the U.S. Gulf of Mexico. As a result, instead of ending in August 2021, the contract will end in January 2022. The day rate for this period has been increased to $260,000.

TotalEnergies has exercised a 370-day option for the Deepwater Skyros drillship in Angola. With a day rate of $195,000, the rig’s contract is set to end in December 2022.

The Discoverer Inspiration drillship has secured a nine-well contract with Hess Corporation for operations in the U.S. Gulf of Mexico. The gig starts in September 2021 and ends in April 2022 with a day rate of $215,000.

Transocean’s Dhirubhai Deepwater KG2 drillship has been awarded a one-well contract, plus two one-well options, with Shell in Brunei. The contract is set to start and end in December 2021 with a day rate of $190,000. The rig’s previous contract was with Woodside in Myanmar with a day rate of $250,000.

Transocean also said that the Petrobras 10000 drillship had won a two-year contract with Petrobras in Brazil. The rig’s current contract, also with Petrobras, with the day rate of $309,000 is scheduled to end in September 2021. After that, the new two-year deal will start in October 2021.

It is divided into three periods with different day rates. The first one, from October until March 2022, will have a day rate of $322,000. The second one, from March 2022 until March 2023, will have a day rate of $328,000. The third one, from March 2023 until October 2023, will have a day rate of $334,000.

Deepwater Nautilus rig; Source: TransoceanPOSCO has exercised two one-well options for the semi-submersible rig Deepwater Nautilus. As a result, instead of ending in August 2021, this contract is now set to end in November 2021 with a day rate of $135,000.

The Transocean-owned semi-sub has also won a one-well contract with an undisclosed operator from February until March 2022 with a day rate of $145,000.

The Transocean Norge semi-sub has secured a four-well contract, plus five one-well options, with ConocoPhillips in Norway. The deal starts in March and ends in September 2022 with a day rate of $280,000. The rig has recently completed its contract with Equinor in Norway with a day rate of $297,000.

Equinor has also exercised two one-well options in Norway for the Transocean Spitsbergen rig. Under these options, the rig will work for Equinor from June 2022 until September 2022 with a day rate of $290,000.

MOL Norge terminated its contract for convenience for the Transocean Barents semi-sub in Norway. The contract with MOL, with a day rate of $270,000, was supposed to end in December 2021. No termination penalty is applicable.

On the other hand, the rig has secured a two-well contract with Shell in Norway. It starts in February 2022 and ends in August 2022 with a day rate of $302,000. The two-well contract was previously announced in June without revealing the operator.

Related Article

Transocean adds $116 million to backlog with fresh deals in Norway
CATEGORIES:PROJECT & TENDERS
Posted:about 1 month ago

In related news, Transocean in June 2021 agreed with Sembcorp Marine’s subsidiary, Jurong Shipyard Pte Ltd (JSPL), on the delayed delivery of two ultra-deepwater drillships.

[FJB] Over the last year, we can see that the biggest insider purchase was by Independ...

FJB — 7/12/2021 10:34:43 PM

Over the last year, we can see that the biggest insider purchase was by Independent Director Frederik Mohn for US$21m worth of shares, at about US$4.20 per share. So it's clear an insider wanted to buy, at around the current price, which is US$4.49. That means they have been optimistic about the company in the past, though they may have changed their mind. We do always like to see insider buying, but it is worth noting if those purchases were made at well below today's share price, as the discount to value may have narrowed with the rising price. The good news for Transocean share holders is that insiders were buying at near the current price.

finance.yahoo.com

[FJB] [graphic] RIG -7.64% Transocean Ltd. RIG recently secured drilling rig contrac...

FJB — 6/17/2021 10:41:11 PM

RIG
-7.64%

Transocean Ltd. RIG recently secured drilling rig contracts totaling $116 million for two of its harsh-environment semisubmersibles.

First, the Transocean Barents drilling rig was granted a two-well contract in Norway with drilling anticipated to begin in February 2022. The contract will last roughly 200 days and add $60 million to the firm contract backlog.

Also, Transocean Norge was assigned a four-well contract in Norway with five one-well options. The drilling is estimated to start in March 2022. The contract will last nearly 200 days and add $56 million to the firm contract backlog.

- ADVERTISEMENT -

Per the Transocean's latest fleet status report, which was issued in April, the Transocean Barents was under contract with MOL in Norway. With a dayrate of $270,000, the contract spans from May this year through December 2021. Besides, the Transocean Norge had a $297,000-per day contract with Equinor EQNR that will expire this month, according to the same fleet report.

Transocean either owns or has a stake in 37 mobile offshore drilling units comprising 27 ultra-deepwater floaters and 10 harsh-environment floaters, and operates all. The company is also building two ultra-deepwater drillships.

Company Profile

Switzerland-based Transocean is the world’s largest offshore drilling contractor and leading provider of drilling management services. The company provide rigs on a contractual basis to explore and develop oil and gas. Transocean offers offshore drilling rigs, equipment, services and manpower (with particular emphasis on ultra-deepwater and harsh-environment drilling services) to exploration and production companies worldwide.

[stocker22] Still time to look at Transocean (RIG) crweworld.com

stocker22 — 4/29/2018 9:11:50 AM

[JakeStraw] Transocean Ltd. was upgraded by analysts at Credit Suisse Group from a "neutral"...

JakeStraw — 2/3/2017 11:37:45 AM

Transocean Ltd. was upgraded by analysts at Credit Suisse Group from a "neutral" rating to an "outperform" rating.

[JakeStraw] Transocean Ltd. was upgraded by analysts at Canaccord Genuity from a "hold" rati...

JakeStraw — 11/3/2016 11:22:02 AM

Transocean Ltd. was upgraded by analysts at Canaccord Genuity from a "hold" rating to a "buy" rating.

[Steven Ribeiro] Hi, with P/E ratio at 2.99 this stock seems interesting. Best regards,

Steven Ribeiro — 10/13/2016 8:18:14 AM

[JakeStraw] Transocean Ltd. was upgraded today by analysts at Howard Weil from a "sector per...

JakeStraw — 10/4/2016 11:25:15 AM

Transocean Ltd. was upgraded today by analysts at Howard Weil from a "sector perform" rating to an "outperform" rating. They now have a $14.00 price target on the stock, up previously from $12.00.

[robert b furman] HI Fredman, I sold some January 2017 10.00 puts for 3.06. If put to me my net...

robert b furman — 9/7/2015 10:50:27 AM

HI Fredman,

I sold some January 2017 10.00 puts for 3.06.

If put to me my net cost will be 6.94.

That is about what their cash per share is now - not saying it will be that then.

So far I've been above water most of the time. gulp

Sort of reminds of the calamity tech stocks went through in 2000 -2001.

Look at cash per share for a ball park of how ugly it can get.

Hope that helps.

Bob

[Fredman] I'm just trying to find a good buy-in point, anybody have a thought?

Fredman — 9/6/2015 5:21:36 PM

[robert b furman] First upgrade I've seen in a long time (to neutral from sell): seekingalpha.com...

robert b furman — 3/30/2015 7:14:03 PM

First upgrade I've seen in a long time (to neutral from sell):

seekingalpha.com

Price target of 14.00

Heck it is a beginning.

I've read several articles that show the inventory build is the result of refinery maintenance and the strike.

The production has not gone up and is about to reverse down as completions are being delayed.

As refineries come on stream crude inventories will drop.

I've also seen articles detailing demand growth - which I believe will surprise many this summer.

I'm now recently retired and loving driving to visit people as it is relatively cheap to do.

I suspect that many will enjoy driving to visit friends and relatives this summer .Those who could not afford traveling in the past will now be opportunistic and take advantage of inexpensive travel.

Many of us take this for granted - but the many will enjoy this capability.

Any growth in China / India will tilt the demand equation quickly.

I suspect it will happen sooner than later.

I do believe the BS about Cushing being up tom 80 % full is fear mongering just before demand growth and supply expansion from the refiner y perspective.

Wall Street knows the rap - it has been done before and will repeat.

I have a hunch we're seeing a bottom coming in.

Sell long puts Jan 2017 on your favorite oil services firms.

I'm looking at NOV just drove to San Antonio on Beltway 8 in Houston - unbelievable how many large buildings they have on that road system.

Bob

[robert b furman] Q4 and fiscal 2014 earnings are out: finance.yahoo.com Bob

robert b furman — 2/25/2015 11:34:26 PM

[Fredman] My first thought is the reason the drillers' stock price lags the oil prices on ...

Fredman — 1/7/2015 7:38:27 PM

My first thought is the reason the drillers' stock price lags the oil prices on the NYMEX because when oil prices go up a bit after being on the bottom, it takes awhile to fire up 'capped' wells, so to speak.
To me, it means new (drilling) contracts are needed before these guys start up again, they won't start drilling for the sake of drilling, they won't drill unless they have a contract (market) to sell THEIR oil to.
One company 'owns the land', another does the drilling, and another does the marketing of drilled oil.
Things take time to happen - and get on the books so to speak.

JMO anyway.

[robert b furman] first thought is it may depend on the degree of diversification beyond E&P. Do ...

robert b furman — 1/7/2015 8:46:45 AM

first thought is it may depend on the degree of diversification beyond E&P.

Do they have upstream.midstream and downstream assets.

Bob

[Shane M] The question now is, when do we buy, WHO do we buy, will it drop more, and who a...

Shane M — 1/7/2015 4:35:54 AM

The question now is, when do we buy, WHO do we buy, will it drop more, and who are the
better drillers to take a shot at?

Hi Fredman and others,

I'm new here, and new to oil, but just wanted to post some thoughts I've been having looking at possible investments in oil. Comments are appreciated.

I selected XOM, CVX, OXY, VLO, HP, and COP quantitatively based on combination of factors including financial strength/staying power, and value metrics - with goal of being able to survive an extended lower oil price. I've pretty much already decided MUR will not be one I put money in, but it's in my exhibit too.

I've been looking at price action in some previous oil price declines, and one thing that's surprising to me is that the price of the oil stocks can move in a detached way from the price of oil during these declines. I'll attach some figures for the 2000 oil price fall and the 2008 oil price fall for comparison, and comparison to now. In each case, I tried to chart the price top, then the price bottom, and then the price recovery over time. WTI in the first column WTI crude price.

What really stands out to me in both of these cases is that it is entirely possible for the stocks to trend lower long after the bottom of oil is in. It's also possible for some oil stocks to go up while the price of oil is falling, and to decline while the price of oil is rising from the bottom of the price.

For example. Take CVX. In 11.27.2000 at oil price peak of 36.24, CVX traded at 26.65. ON 11.19.2001 at oil price bottom oil had traded down to 17.74, and CVX stock price had increased to 26.81. Then one year later on 11.19.2002 when oil price had increased to 26.41, the CVX price fallen to 22.63. So we see in this case CVX stock was negatively correlated with the price of oil. The initial response in oil stock prices are often muted given the significant drops in price of oil.

You can see similar trends long after the oil price bottom in 12.23.2008, Most stocks traded lower after the bottom in oil price, than they did at the bottom in oil price - often for years. For example: At the oil price bottom on 12.23.2008 XOM traded at 64.45 (oil was at 30.28/barrel). On 7.6.2009 XOM traded at 59.09 (oil traded at 64.06). On 7.6.2010 XOM traded at 51.13 (oil was now at 71.96).

This same trend plays out in many of the stocks. I guess my conclusion is the bottom in the price for oil doesn't necessarily mark the bottom in the price for the oil stocks.

I'm really left scratching my head as to what to do here, but my initial impression from the history is to not be in any hurry, and to scale in slowly.

I haven't followed the industry much, but a key question I have after looking at this data is: "What causes the initially muted price response in the stocks to the drop in the price of oil?" XOM, CVX and COP in particular seem to be slower to bottom than would be expected. I might put VLO in that boat also, but it's a refiner so maybe different dynamic there.

Appreciate any thoughts on what I see as peculiar price action.

[robert b furman] Thanks for that report. I'm of the opinion a dividend cut is inevitable, as wil...

robert b furman — 1/6/2015 3:07:48 PM

Thanks for that report.

I'm of the opinion a dividend cut is inevitable, as will be the price drop when it is announced.

I think selling puts when if that occurs will be a good approach to either securing some cash or getting rig on the cheap.

Not a big position because this is a crap shoot.

gulp

Bob

[Qualified Opinion] moodys.com

Qualified Opinion — 1/6/2015 2:50:04 PM

[robert b furman] Banks are OK - high yield will get gobbled up by big oil. Last time oil went to...

robert b furman — 1/6/2015 7:31:10 AM

Banks are OK - high yield will get gobbled up by big oil.

Last time oil went to 10.00 a barrel Exxon bought Mobil.

There is not enough high yield bond paper out there to be systemic (18% of all high yield is oil related).

Big oil has been down this path before and can float paper on the cheap, to buy up good land with particulate oil under it.

The longer cheap energy exists the faster the world reflates.

Cheap oil is QE5.

This is the first QE that is free market based with no fed expansion of its balance sheet.

Buy the dip - this one will finally work.

Banks are no longer in commodity business - they've been newtered by Dodd Frank.

SOB's may even have to make loans to make money now!

Black Swanns never last very long and then some one goes BK and it is over.

Don't see that happening so far.

Saudi's can make the emerging world pay -perhaps to the long term benefit AND VIABILITY OF THE SHALE FRACING REVOLUTION.

The one looming question is how cheap efficient fracing firms can mine oil - it could well be much cheaper than off shore - if so the viability of the USA having another industrial revolution based on cheap energy at home becomes viable - thus the disconnect with our 5% GDP vs the worlds 1-2 % GDP.

If fracing goes global or just in all of North America (Mexico and Canada - emerging markets will be playing second fiddle.

This is a big buck play at work.

I say let the middle east sweat it out amongst them selves, and promote our home oil development to the MAX.

Fun to watch .

No clue how to play it - other than just watch and buy oil companies after a bottom goes in.

BWDIK

Bob

[Qualified Opinion] Probably huge losses if you do drill at current lease rates at current crude pri...

Qualified Opinion — 1/5/2015 10:49:18 PM

Probably huge losses if you do drill at current lease rates at current crude prices. When will Fed do QE4 and/or Saudi's cut production to increase crude prices ?

We are in Black Swann territory for the large banks. Industries can go bankrupt.

[robert b furman] Hi Qo, I'm a newbie here. Once you lease the land and start the clock -you hav...

robert b furman — 1/5/2015 8:39:43 PM

Hi Qo,

I'm a newbie here.

Once you lease the land and start the clock -you have huge losses looming if you do not drill and huge losses unless you have good leases.

FREE CASH FLOW WILL BE THE DETERMINNG FACTOR.

Hedging forward production will be very helpful to future cash flows.

Unwinding them and rehedging may be the best scenario?

Like most sector damage, mergers and acquisitions will give us timing clues.

The first wave will be the weak sisters - the second wave will be more instructive (in my swag).lol

I have no doubt sub 50 dollar barrels will be a aberration vs the long term.

Those who have survived past commodity swings will know how to lever their conservative ways into the long term benefit and future greater profits.

So it is written - so it will be !!

We are early into this game.

I'm sure it will require scaling in and if you hit it perfect - you will be lucky.

If one allocates capital in scale and have the ability to hold on long term - it will be a wise wealth defining period to be an active but determined investor in.

Just my long term belief and I could well be wrong for a while and then.<smile>

It will be a great retirement plan.

Bob

I like KMI,RIG,ESV and those that do not have a good enough dividend policy yet.

Bob

[Qualified Opinion] Heavy debt loads can't be wished away. Is there any value left at current crude ...

Qualified Opinion — 1/5/2015 5:59:08 PM

Heavy debt loads can't be wished away. Is there any value left at current crude prices for the shale and other oil companies ?

[Qualified Opinion] Good luck with your research.

Qualified Opinion — 1/5/2015 5:46:17 PM

[robert b furman] The big question to me is just how competitive is Shale vs every one else except...

robert b furman — 1/5/2015 4:27:12 PM

The big question to me is just how competitive is Shale vs every one else excepting the big ME exporters (Saudi's Quatar, U.A.E. ?

If shale continues for 2-3 years = a very good economy in the USA and U>S oil services equities will do well.

A lot of countries have outlawed shale fracing.

If the US continues fracing - we'll be exporters of refined products.

E&P will have margin shrinkage.

Oil services will have competition = makes for M&A as we see in Baker Hughes and Sclumberger.

I can see where dividends will be trimmed but I wonder if the industry goes bust or just competes.

All good questions - outcomes of which have yet to be made known.

Wondering if this oil top is similar to what the semi's went through in 1999 - 2000.

14 years later more chips are being sold every year on a very diverse plethora of products.

There are a lot fewer chip makers names out there now vs 2000.

The survivors are doing very well in a much more mature industry.

Bob

[Qualified Opinion] Oil prices could stay down for two to three years this time due to fracking(supp...

Qualified Opinion — 1/5/2015 1:24:33 PM

Oil prices could stay down for two to three years this time due to fracking(supply) unless the Saudi's cut production or the Fed does some form of QE4 sinking the U.S. dollar.

[robert b furman] I'm new to following the oil patch. Any one have any experience with regards to...

robert b furman — 1/5/2015 10:59:10 AM

I'm new to following the oil patch.

Any one have any experience with regards to how the demand led decline in 2008( resulting from a global recession) impacted the book values of these oil companies ?

If oil's price declines over a long term time period - that must give us hugely inflated book values in todays short term view NO ??

Bob

[Qualified Opinion] Too early with crude oil prices still declining. We'll see if their revolving cr...

Qualified Opinion — 1/5/2015 12:17:06 AM

Too early with crude oil prices still declining. We'll see if their revolving credit line is sufficient. Apparently, too early for significant insider buying.

[Fredman] EVERY oil driller I have looked at has HUGE LTD, so this is nothing new whatsoev...

Fredman — 12/31/2014 7:31:30 PM

EVERY oil driller I have looked at has HUGE LTD, so this is nothing new whatsoever.

The question now is, when do we buy, WHO do we buy, will it drop more, and who are the
better drillers to take a shot at?

[Qualified Opinion] No interest due to the long term debt and new build expenditure schedule. The cr...

Qualified Opinion — 12/14/2014 12:41:37 PM

No interest due to the long term debt and new build expenditure schedule. The crash in oil prices can't help credit or customer demand. It looks like the perfect storm. Will the Fed implement some form of QE4 ?

[robert b furman] Already down 50 %. Might short it on a bounce. 2008 low was 13.50 - there's so...

robert b furman — 12/12/2014 6:50:28 PM

Already down 50 %.

Might short it on a bounce.

2008 low was 13.50 - there's some room.

Bob

Some stock wiyth too much debt could go to zero.

[JakeStraw] I'm looking at XES...

JakeStraw — 12/12/2014 10:45:45 AM

[robert b furman] Hi Jake, I sold some 2016 13 puts for 1.75. If rig closes below 13.00 my net c...

robert b furman — 12/12/2014 10:05:56 AM

Hi Jake,

I sold some 2016 13 puts for 1.75.

If rig closes below 13.00 my net cost would be 11.25.

I've tried to sell some at 10 also,but have not yet sold any.

There's a baby in that bath water I think - gulp.

Just no dividend.

Bob

[JakeStraw] Anyone brave enough to buy RIG here..?

JakeStraw — 12/12/2014 9:51:50 AM

[robert b furman] Both huge in Houston. Have not done DD. Probably can't miss if you are even c...

robert b furman — 12/5/2014 10:03:06 PM

Both huge in Houston.

Have not done DD.

Probably can't miss if you are even close to the bottom.

bob

[JakeStraw] I was thinking about maybe buying HAL, or SLB...

JakeStraw — 12/5/2014 2:37:03 PM

[robert b furman] Hi Ox, That one fugly chart. It may not be a perfect entry but with cutting ...

robert b furman — 12/5/2014 1:55:05 PM

Hi Ox,

That one fugly chart.

It may not be a perfect entry but with cutting the dividend completely that must be a simple sell decision for all of the dividend funds.

So when they're selling with reckless abandonment - I'm selling some insurance for those panicing.

During panic sell offs the put premium always get excessive.

I'm taking it light on entering the water,but at $10.00 - $11.27 this stock looks cheap.

Maybe NOV would buy them out .Halliburton just swallowed Baker Hughes.

Bob