Subsea7 (SUBCY) Secures Trion Field Development Contract
Subsea7 S.A. SUBCY has been awarded a large contract by Woodside Energy Group for the development of the Trion field in the Gulf of Mexico. Per the terms of the contract, Subsea7’s work scope includes engineering, construction, and installation of the subsea umbilicals, risers and flowlines, as well as the associated subsea architecture. The company defines a large contract as one valued in the range of $300-$500 million.
The Trion deep-water field is located within the Perdido Fold Belt, approximately 30 kilometers south of the U.S. Mexico border and 180 kilometers away from the Mexican coastline. The water depths in the location range up to 2,600 meters.
Project management and engineering will commence immediately from SUBCY’s offices in the United States and Mexico. Furthermore, offshore activities are expected to occur between 2026 and 2027. The first oil production is targeted for 2028.
The project involves the installation of a wet tree subsea system connected to an infield floating production unit. It is being developed by Woodside, in partnership with Pemex.
Subsea7 has stated that the contract highlights the company’s strong partnership with Woodside. Given SUBCY’s extensive experience in the Gulf of Mexico and its successful track record, the company expresses confidence in its capabilities to deliver value for its clients by providing innovative, reliable and fast-tracked solutions.
Zacks Rank and Key Picks
Currently, SUBCY carries a Zacks Rank #3 (Hold).
Investors might want to look at some better-ranked stocks in the energy sector, such as Energy Transfer LP ET, Archrock, Inc. AROC and Sunoco LP SUN. Archrock and Sunoco presently sport a Zacks Rank #1 (Strong Buy) each, while Energy Transfer carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Archrock is an energy infrastructure company based in the United States, with a focus on midstream natural gas compression. It provides natural gas contract compression services and generates stable fee-based revenues.
Sunoco LP is one of the largest distributors of motor fuel in the United States. The company distributes fuel to independent dealers, commercial customers, convenience stores as well as distributors. Sunoco’s current dividend yield is greater than the composite stocks in the industry. It could be a preferred stock for income-focused investors who seek consistent returns.
Energy Transfer is a midstream player that owns and operates one of the most diversified portfolios of energy assets in the United States. With a pipeline network extending more than 125,000 miles, its network spans over 44 states. With a presence in all the major U.S. production basins, the partnership’s outlook seems positive.
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