Hercules Offshore, Inc. (HERO) Message Board
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Insight much appreciated.
If a larger oil company wanted to buy out HERO, what would be the attractive reasoning for the acquisition? In other words, why would someone be interested in buying Hercules?
For the record, there are zero rumors regarding this matter. I am asking this question because of an article I read. Thanks in advance.-
All that positive bullschitt never amounts to an increase in the stock price.
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mike,
reread americakin`s post.
you have to see that it is a positive.the guy`s sharp.it`s exactly why i`m here. -
No, I like to hear positives. I'm just waiting for the day that those positives translate into a positive rise in the stock price.
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There is a shortage of active rigs in the GOM at 40 (we had over 100 working a few years ago that migrated to other areas due to drilling moratorium). That coupled with LLS trading over $125 is driving day rates higher. World comsumption of oil is only going higher and I think we will see $90K day rates soon.
Hero has 10 rigs that are cold stacked but targeted to sell and they could fetch from $40 to 80 million if sold to the MOPU segment, (much higher than scrap).
With rig markets getting tight, they should do very well on those sales and it would not surprise me if they have already made a sale of one of those.
Good luck Longs.- 2 Replies to americankinsei
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Selling assets is not a ticket to success. It's more like admitting defeat.
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Thank you for your respectful and educated response, it is very much appreciated. Good Luck Longs!
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No need to even think about it Ryan. Nobody wants the junk Hercules owns.
- 1 Reply to mike_dotcom
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This article specifically mentioned that in order to survive you must be invested in technologically advanced rigs. So, I'm thinking Hero's cold stack rigs will soon be obsolete if not already.
P.S. nice call on the downturn.
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