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Offshore driller Transocean Ltd. (RIG - Free Report) has achieved another significant milestone by signing a one-year contract for its ultra-deepwater drillship, Deepwater Conqueror. The new operator remains undisclosed, but it is currently engaged with US energy giant Chevron in the Gulf of Mexico. The contract, which is scheduled to begin by October 2025, is valued at about $193 million and is also expected to grow the company’s backlog substantially. As of July 2024, Transocean had a backlog of $8.64 billion.
RIG’s Advanced Deepwater Conqueror
Built in 2016, The Deepwater Conqueror is a remarkable asset in Transocean's fleet. This drillship can work in the water depths of 12000 feet (approximately 3658 meters) and can drill up to a maximum depth of 40000 feet (12192 meters). This rig can accommodate up to 240 people and is scheduled to work for Chevron till April 2025, aligning perfectly with the schedule of the new contract.
One More Addition to RIG’s Previous Contracts
This transaction adds one more feather to a series of successful contracts RIG has signed recently, including the one with BP in the Gulf of Mexico and another multi-million dollar contract for drilling work off the coast of India.
For investors, a new drilling job or the growth in backlog is of utmost importance as it directly influences Transocean's sales, earnings and cash flows. As the offshore driller secures new contracts, its financial outlook is bolstered, creating a positive trajectory for the company and its stakeholders.
RIG’s Zacks Rank and Key Picks
Switzerland-based Transocean is one of the world’s largest offshore drilling contractors and a leading provider of drilling management services. Currently, RIG has a Zacks Rank #4 (Sell).
Investors interested in the energy sector might look at some better-ranked stocks like Archrock, Inc. (AROC - Free Report) , Nine Energy Service, Inc. (NINE - Free Report) and Valaris Limited (VAL) While Archrock currently sports a Zacks Rank #1 (Strong Buy), Nine Energy and Valaris each carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Headquartered in the United States, Archrock, Inc. is a provider of natural gas contract compression services and supplier of aftermarket services of compression equipment. The Zacks Consensus Estimate for AROC's 2024 earnings indicates 59.42% year-over-year growth.
Nine Energy Service, Inc. provides onshore completion and production services for unconventional oil and gas resource development. NINE’s expected EPS (earnings per share) growth rate for the current quarter is 23.08%, which compares favorably with the industry's growth rate of 6.36%.
London-based Valaris Limited provides offshore drilling services across all water depths and geographies. The Zacks Consensus Estimate for VAL's 2024 earnings indicates 290.18% year-over-year growth.
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Transocean Inks $193M Ultra-Deepwater Drillship Contract
Offshore driller Transocean Ltd. (RIG - Free Report) has achieved another significant milestone by signing a one-year contract for its ultra-deepwater drillship, Deepwater Conqueror. The new operator remains undisclosed, but it is currently engaged with US energy giant Chevron in the Gulf of Mexico. The contract, which is scheduled to begin by October 2025, is valued at about $193 million and is also expected to grow the company’s backlog substantially. As of July 2024, Transocean had a backlog of $8.64 billion.
RIG’s Advanced Deepwater Conqueror
Built in 2016, The Deepwater Conqueror is a remarkable asset in Transocean's fleet. This drillship can work in the water depths of 12000 feet (approximately 3658 meters) and can drill up to a maximum depth of 40000 feet (12192 meters). This rig can accommodate up to 240 people and is scheduled to work for Chevron till April 2025, aligning perfectly with the schedule of the new contract.
One More Addition to RIG’s Previous Contracts
This transaction adds one more feather to a series of successful contracts RIG has signed recently, including the one with BP in the Gulf of Mexico and another multi-million dollar contract for drilling work off the coast of India.
For investors, a new drilling job or the growth in backlog is of utmost importance as it directly influences Transocean's sales, earnings and cash flows. As the offshore driller secures new contracts, its financial outlook is bolstered, creating a positive trajectory for the company and its stakeholders.
RIG’s Zacks Rank and Key Picks
Switzerland-based Transocean is one of the world’s largest offshore drilling contractors and a leading provider of drilling management services. Currently, RIG has a Zacks Rank #4 (Sell).
Investors interested in the energy sector might look at some better-ranked stocks like Archrock, Inc. (AROC - Free Report) , Nine Energy Service, Inc. (NINE - Free Report) and Valaris Limited (VAL) While Archrock currently sports a Zacks Rank #1 (Strong Buy), Nine Energy and Valaris each carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Headquartered in the United States, Archrock, Inc. is a provider of natural gas contract compression services and supplier of aftermarket services of compression equipment. The Zacks Consensus Estimate for AROC's 2024 earnings indicates 59.42% year-over-year growth.
Nine Energy Service, Inc. provides onshore completion and production services for unconventional oil and gas resource development. NINE’s expected EPS (earnings per share) growth rate for the current quarter is 23.08%, which compares favorably with the industry's growth rate of 6.36%.
London-based Valaris Limited provides offshore drilling services across all water depths and geographies. The Zacks Consensus Estimate for VAL's 2024 earnings indicates 290.18% year-over-year growth.