Duncan Williams Upgrades Hercules Offshore (HERO) to Strong Buy; Acquires Seahawk 9:54 am ET 02/14/2011- StreetInsider Duncan Williams upgraded Hercules Offshore (NASDAQ: HERO) from Buy to Strong Buy. PT increased from $4.50 to $6. Duncan analyst says, "Hercules has signed an agreement to buy the assets of Seahawk Drilling, (NASDAQ: HAWK) (not rated) for approximately 22.3 million shares plus a cash consideration of $25 million.We believe this acquisition reduces one competitor from the market, leads to higher dayrates sooner, leads to higher utilization sooner, and should help HERO to survive. HERO, as part of acquisition, is planning to renegotiate its bank covenants, which should remove a risk to the stock going forward as its bankers get more assets for coverage of the loans...We believe this news is positive for the stock and puts the company closer to becoming profitable in the future." For more ratings news on Hercules Offshore click here and for the rating history of Hercules Offshore click here. Shares of Hercules Offshore closed at $3.62 yesterday, with a 52 week range of $2.05-$4.86. .
Energy shares rally; refiners up on oil price drop 5:29 pm ET 02/14/2011- MarketWatch Databased News NEW YORK (MarketWatch) -- Energy shares were the biggest gainers in the S&P 500 Monday as oil refiner stocks rallied on the heels of a drop in crude prices and a spike in gasoline futures.
A nearly $3 billion purchase by General Electric Co. in the energy sector, an upgrade of Cameron International and a rally in shares of Hercules Offshore also lent power to drilling stocks, while Chevron Corp.'s environmental lawsuit in Ecuador drew the spotlight.
Capital One Southcoast Inc. on Monday upgraded shares of Hercules Offshore to add from neutral after it agreed to pay $100 million for rigs owned by Seahawk Drilling, which has declared bankruptcy. Analysts praised the move by Hercules as "very positive" for the company's earnings power.
Shares of Hercules rallied 18% to finish at $4.27, while Seahawk Drilling dropped 41% to $4.65.