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Transocean (RIG) Bets on GSR for Deep-Sea Mineral Exploration
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Transocean (RIG - Free Report) , a leading offshore drilling company, is investing in Global Sea Mineral Resources (“GSR”) for a non-controlling stake through one of its subsidiaries. GSR is a deep-sea mineral exploration division focused on developing and exploring polymetallic nodules, which contain metals crucial for renewable energy and high-capacity batteries.
Transocean will offer the use of the Ocean Rig Olympia vessel, along with engineering services and a nominal cash investment to support GSR's exploration work. The rig is specifically designed to operate in challenging conditions and in water depths of up to 12,000 feet. Transocean and GSR both aim to convert the vessel for a test in 2025 to check the feasibility of commercially recovering deep-sea polymetallic nodules in ultra-deep waters.
This investment combines Transocean's ultra-deepwater experience with GSR's nodule collection technology to deliver a commercially viable nodule recovery enterprise. The presence of critical minerals, such as cobalt, nickel, copper, manganese, and rare earth metals in deep-sea polymetallic nodules is vital for producing high-capacity batteries and other applications.
With demand for critical minerals on the rise, numerous governments and private companies are developing plans to address the expected scarcity of these minerals in the future. Recovering deep-sea polymetallic nodules in a responsible manner can help fulfill this increasing demand and create a new, significant source of supply. Transocean's CEO sees this investment as a means of providing essential offshore energy services to meet future global energy demands.
Transocean's partnership with GSR marks an important milestone in the development of the deep-sea mining industry. With Transocean's advanced drilling technology and GSR's deep-sea mining expertise, the partnership has the potential to significantly contribute to the global supply of critical minerals while maintaining environmental sustainability.
Zacks Rank and Other Key Picks
Transocean is a leading provider of offshore drilling services, specializing in deepwater and harsh environment drilling. The company operates a fleet of 38 drilling units, including 28 ultra-deepwater floaters and 10 harsh environment floaters, and is constructing one ultra-deepwater drillship.
Currently, Transocean carries a Zacks Rank #2 (Buy). Apart from RIG, investors interested in the energy sector might look at stocks like ProPetro Holding (PUMP - Free Report) and Energy Transfer (ET - Free Report) both sporting a Zacks Rank #1 (Strong Buy) and Helmerich & Payne (HP - Free Report) holding a Zacks Rank #2.You can see the complete list of today’s Zacks #1 Rank stocks here.
ProPetro Holding: PUMP currently has a forward P/E ratio of 4.43. In comparison, its industry has an average forward P/E of 25.40, which means PUMP is trading at a discount to the group.
ProPetro Holding is worth approximately $1.13 billion. Its shares have decreased by 20.8% in the past year.
Energy Transfer LP: Energy Transfer LP is valued at around $39.66 billion. ET delivered an average earnings surprise of 16.34% for the last four quarters, and its current dividend yield is 9.50%.
Energy Transfer LP currently has a forward P/E ratio of 8.95. For comparison, its industry has an average forward P/E of 14.20, which means Energy Transfer LP is trading at a discount to the group.
Helmerich & Payne: Helmerich & Payne is valued at around $4.78 billion. Helmerich & Payne, headquartered in Tulsa, OK, has a trailing four-quarter earnings surprise of roughly 130.98% on average.
Over the past 60 days, the Zacks Consensus Estimate for HP's fiscal 2023 earnings has been revised by 18.8%. In the past year, HP stock has increased by 36.3%.
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Transocean (RIG) Bets on GSR for Deep-Sea Mineral Exploration
Transocean (RIG - Free Report) , a leading offshore drilling company, is investing in Global Sea Mineral Resources (“GSR”) for a non-controlling stake through one of its subsidiaries. GSR is a deep-sea mineral exploration division focused on developing and exploring polymetallic nodules, which contain metals crucial for renewable energy and high-capacity batteries.
Transocean will offer the use of the Ocean Rig Olympia vessel, along with engineering services and a nominal cash investment to support GSR's exploration work. The rig is specifically designed to operate in challenging conditions and in water depths of up to 12,000 feet. Transocean and GSR both aim to convert the vessel for a test in 2025 to check the feasibility of commercially recovering deep-sea polymetallic nodules in ultra-deep waters.
This investment combines Transocean's ultra-deepwater experience with GSR's nodule collection technology to deliver a commercially viable nodule recovery enterprise. The presence of critical minerals, such as cobalt, nickel, copper, manganese, and rare earth metals in deep-sea polymetallic nodules is vital for producing high-capacity batteries and other applications.
With demand for critical minerals on the rise, numerous governments and private companies are developing plans to address the expected scarcity of these minerals in the future. Recovering deep-sea polymetallic nodules in a responsible manner can help fulfill this increasing demand and create a new, significant source of supply. Transocean's CEO sees this investment as a means of providing essential offshore energy services to meet future global energy demands.
Transocean's partnership with GSR marks an important milestone in the development of the deep-sea mining industry. With Transocean's advanced drilling technology and GSR's deep-sea mining expertise, the partnership has the potential to significantly contribute to the global supply of critical minerals while maintaining environmental sustainability.
Zacks Rank and Other Key Picks
Transocean is a leading provider of offshore drilling services, specializing in deepwater and harsh environment drilling. The company operates a fleet of 38 drilling units, including 28 ultra-deepwater floaters and 10 harsh environment floaters, and is constructing one ultra-deepwater drillship.
Currently, Transocean carries a Zacks Rank #2 (Buy). Apart from RIG, investors interested in the energy sector might look at stocks like ProPetro Holding (PUMP - Free Report) and Energy Transfer (ET - Free Report) both sporting a Zacks Rank #1 (Strong Buy) and Helmerich & Payne (HP - Free Report) holding a Zacks Rank #2.You can see the complete list of today’s Zacks #1 Rank stocks here.
ProPetro Holding: PUMP currently has a forward P/E ratio of 4.43. In comparison, its industry has an average forward P/E of 25.40, which means PUMP is trading at a discount to the group.
ProPetro Holding is worth approximately $1.13 billion. Its shares have decreased by 20.8% in the past year.
Energy Transfer LP: Energy Transfer LP is valued at around $39.66 billion. ET delivered an average earnings surprise of 16.34% for the last four quarters, and its current dividend yield is 9.50%.
Energy Transfer LP currently has a forward P/E ratio of 8.95. For comparison, its industry has an average forward P/E of 14.20, which means Energy Transfer LP is trading at a discount to the group.
Helmerich & Payne: Helmerich & Payne is valued at around $4.78 billion. Helmerich & Payne, headquartered in Tulsa, OK, has a trailing four-quarter earnings surprise of roughly 130.98% on average.
Over the past 60 days, the Zacks Consensus Estimate for HP's fiscal 2023 earnings has been revised by 18.8%. In the past year, HP stock has increased by 36.3%.