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Transocean's Deepwater Invictus Begins Offshore Drilling for BP

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Transocean Ltd. (RIG - Free Report) has officially commenced operations for British energy major BP p.l.c. (BP - Free Report) in the Gulf of America (formerly the U.S. Gulf of Mexico). This milestone marks the beginning of a significant ultra-deepwater drilling project to further tap into the region’s hydrocarbon potential.

During the first quarter of 2025, Transocean, currently carrying a Zacks Rank #3 (Hold), reported total adjusted revenues of $906 million, which increased 18.7% from the prior-year figure of $763 million. The improvement was primarily driven by increased revenues from ultra-deepwater and harsh environment floaters, where ultra-deepwater floaters contributed 73% to the net contract drilling revenues, which rose to $658 million from $569 million in the same quarter last year. The reported financial figures highlight that ultra-deepwater is an important segment in Transocean’s financial performance.

You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Therefore, for investors, the commencement of this drilling operation is of utmost importance as it directly influences Transocean's revenues, earnings and cash flows. As the offshore driller secures and commences new contracts, its financial outlook gets bolstered, creating a positive trajectory for the company and its stakeholders.

An Insight Into RIG’s Deepwater Invictus Deal

In 2024, RIG’s ultra-deepwater rig “The Deepwater Invictus” landed a 1,095-day contract with BP in the U.S. Gulf of Mexico, with a day rate of $485,000. In addition, the rig secured two single-well extension contracts in the region from an undisclosed operator.

An Overview of the Deepwater Invictus Rig

Commissioned in 2014, the Deepwater Invictus is a DSME 12000-class drillship engineered for extreme offshore conditions. It boasts a water depth capability of up to 12,000 feet (3,658 meters) and can drill as deep as 40,000 feet (12,192 meters), making it one of the most advanced rigs in operation today.

Focus on Safety and Performance

Prior to the start of drilling, Transocean and BP conducted a comprehensive engagement session at Transocean’s Houston office. The initiative focused on cultivating a “safety-first, high-performance culture” among the team, reinforcing both companies’ commitment to operational excellence.

Key Picks

Investors interested in the energy sector might look at some top-ranked stocks like Prairie Operating Co. (PROP - Free Report) and Expand Energy Corporation (EXE - Free Report) . While Prairie Operating currently sports a Zacks Rank #1, Expand Energy carries a Zacks Rank #2 (Buy).

Houston-based Prairie Operating is an independent energy company engaged in the development and acquisition of proven, producing oil and natural gas resources principally in the United States. The Zacks Consensus Estimate for PROP’s 2025 earnings indicates 389.05% year-over-year growth.

Expand Energy is a leading U.S.-based natural gas producer formed through the merger of Chesapeake Energy Corporation and Southwestern Energy Company. The Zacks Consensus Estimate for EXE’s 2025 earnings indicates 444.68% year-over-year growth.

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