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Transocean (RIG) Announces $488 Million Addition to Backlog
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Transocean Ltd. (RIG - Free Report) recently reported that five of its drilling units received contract awards or extensions, adding approximately $488 million to firm backlog. Investors should know that incremental backlog is important since it will affect the offshore driller’s sales, earnings and future cash flows.
Firstly, the ultra-deepwater drillship Invictus was awarded an estimated 100-day contract extension in the U.S. Gulf of Mexico with an independent operator. The projected contract backlog is approximately $43 million. The three-well contract is likely to start straightaway once the rig’s existing gig ends.
Transocean also announced that it has secured a contract extension for the Barents’ harsh environment semi-submersible. Per the company, the new, one-well, 110-day contract adds approximately $34 million in backlog and is expected to commence in the first quarter of 2023 in the U.K. North Sea with a leading energy company.
Then there is the harsh environment semi-submersible Paul B. Loyd, Jr., which had an option exercised by Harbour Energy on its U.K. North Sea contract. The incremental contribution to backlog from this eight plug and abandonment contract is an estimated $48 million. Following the 275-day addition, the contract will now finish in the third quarter of 2024.
Transocean, a Zacks Rank #2 (Buy) company, further informed that the backlog has been topped up by certain previously disclosed options in Norway. Amounting to some $331 million, the tenure of the extensions is 773 days. The unit in question is Transocean Norge and the contracts are with Wintershall DEA and OMV.
Finally, ultra-deepwater semi-submersible Development Driller III got a one-well contract extension in Suriname. The additional time period is 90 days and it will increase backlog by $32 million.
Other Energy Picks
Apart from RIG, investors interested in the energy sector might look at operators like Murphy USA (MUSA - Free Report) , Helmerich & Payne (HP - Free Report) and Oceaneering International (OII - Free Report) . Each of the companies has a Zacks Rank #1 (Strong Buy).
Murphy USA: Over the past 60 days, this El Dorado, AR-based Murphy USA has seen the Zacks Consensus Estimate for 2022 improve 4%. MUSA, which surpassed third-quarter bottom-line estimates by 18.7%, is valued at around $6.1 billion.
Murphy USA has a trailing four-quarter earnings surprise of roughly 51%, on average. MUSA has seen its shares gain 37.4% in a year.
Helmerich & Payne: Helmerich & Payne is valued at some $4.8 billion. The Zacks Consensus Estimate for HP’s fiscal 2023 earnings has been revised 19.9% upward over the past 60 days.
Helmerich & Payne, headquartered in Tulsa, OK, has a trailing four-quarter earnings surprise of roughly 51%, on average 124.2%. HP shares have surged 61.1% in a year.
Oceaneering International: OII beat the Zacks Consensus Estimate for earnings in three of the last four quarters. The company has a trailing four-quarter earnings surprise of roughly 33.4%, on average.
Oceaneering International is valued at around $1.7 billion. OII has seen its shares gain 27% in a year.
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Transocean (RIG) Announces $488 Million Addition to Backlog
Transocean Ltd. (RIG - Free Report) recently reported that five of its drilling units received contract awards or extensions, adding approximately $488 million to firm backlog. Investors should know that incremental backlog is important since it will affect the offshore driller’s sales, earnings and future cash flows.
Firstly, the ultra-deepwater drillship Invictus was awarded an estimated 100-day contract extension in the U.S. Gulf of Mexico with an independent operator. The projected contract backlog is approximately $43 million. The three-well contract is likely to start straightaway once the rig’s existing gig ends.
Transocean also announced that it has secured a contract extension for the Barents’ harsh environment semi-submersible. Per the company, the new, one-well, 110-day contract adds approximately $34 million in backlog and is expected to commence in the first quarter of 2023 in the U.K. North Sea with a leading energy company.
Then there is the harsh environment semi-submersible Paul B. Loyd, Jr., which had an option exercised by Harbour Energy on its U.K. North Sea contract. The incremental contribution to backlog from this eight plug and abandonment contract is an estimated $48 million. Following the 275-day addition, the contract will now finish in the third quarter of 2024.
Transocean, a Zacks Rank #2 (Buy) company, further informed that the backlog has been topped up by certain previously disclosed options in Norway. Amounting to some $331 million, the tenure of the extensions is 773 days. The unit in question is Transocean Norge and the contracts are with Wintershall DEA and OMV.
Finally, ultra-deepwater semi-submersible Development Driller III got a one-well contract extension in Suriname. The additional time period is 90 days and it will increase backlog by $32 million.
Other Energy Picks
Apart from RIG, investors interested in the energy sector might look at operators like Murphy USA (MUSA - Free Report) , Helmerich & Payne (HP - Free Report) and Oceaneering International (OII - Free Report) . Each of the companies has a Zacks Rank #1 (Strong Buy).
You can see the complete list of today’s Zacks #1 Rank stocks here.
Murphy USA: Over the past 60 days, this El Dorado, AR-based Murphy USA has seen the Zacks Consensus Estimate for 2022 improve 4%. MUSA, which surpassed third-quarter bottom-line estimates by 18.7%, is valued at around $6.1 billion.
Murphy USA has a trailing four-quarter earnings surprise of roughly 51%, on average. MUSA has seen its shares gain 37.4% in a year.
Helmerich & Payne: Helmerich & Payne is valued at some $4.8 billion. The Zacks Consensus Estimate for HP’s fiscal 2023 earnings has been revised 19.9% upward over the past 60 days.
Helmerich & Payne, headquartered in Tulsa, OK, has a trailing four-quarter earnings surprise of roughly 51%, on average 124.2%. HP shares have surged 61.1% in a year.
Oceaneering International: OII beat the Zacks Consensus Estimate for earnings in three of the last four quarters. The company has a trailing four-quarter earnings surprise of roughly 33.4%, on average.
Oceaneering International is valued at around $1.7 billion. OII has seen its shares gain 27% in a year.