Recent report from WF, indicates a 5% drop forecasted for deepwater rig rates. However, this means that 4th generation rigs wont get work as 5th to 7th generation rigs will be available at lower rates
Another aspect is that all airlines, US and European are reporting substantially lower fuel costs. I know it effects all airlines but Volaris's profits will benefit.
Its been a good buy so far. Don't forget about their pipeline inspection business. Pipelines are expanding at a terrific rate and this aspect will grow.
Sold at $19.06. Will wait and see as price action today was weird. So was the SO at $ 15.75. Companies who handled the SO were amateurs ,leaving so much money on the table.
I would be wary of o&g producers. I expect a further decline in oil prices to $80 to$ 85 range. I also specialize in energy and have gone for pipelines. Good luck.