Helix Energy Solutions Group Inc. (HLX - Free Report) , an offshore energy firm, inked a five-year deal with British energy giant BP plc (BP - Free Report) .
Per the agreement, BP will get well intervention services from Helix Energy in the U.S. Gulf of Mexico. For the development, Helix Energy will utilize its well intervention semi-submersible vessel, named Q5000. Management reveals that the vessel is presently under construction in Singapore.
Helix Energy expects the deal to start between Apr and Aug of 2015, subsequently with the delivery of the vessel. Helix Energy added that the contract will be for at least 270 days each year. It will also comprise a first right of refusal for extra days per year and will offer an option to extend the deal for two successive terms of one year each. Helix Energy described the deal as BP’s recognition of its strong well intervention services.
Houston, Texas-based Helix Energy is a major supplier of deepwater oilfield services mainly in the Gulf of Mexico, the Asia Pacific, West African regions and North Sea. Helix Energy provides production services, which includes repairing, inspecting and maintaining jumpers, pipelines, risers, trees, subsea tools etc.
The company also supplies well intervention and life of field support services. The principal customers of Helix Energy comprise oil and gas companies, independent suppliers and producers of oil and gas, and oil and gas pipeline companies.
Helix Energy currently retains a Zacks Rank #3 (Hold), implying that it is expected to perform in line with the broader U.S. equity market over the next one to three months.
Two firms in the energy sector that are expected to significantly outperform the equity markets in the next one to three months are Calumet Specialty Products Partners LP (CLMT - Free Report) and Range Resources Corp (RRC - Free Report) . Both of these stocks carry a Zacks Rank #1 (Strong Buy).