6.34 +0.01 (0.16%)
After hours: 6:21PM EDT
|Bid||6.15 x 36200|
|Ask||0.00 x 1000|
|Day's Range||6.10 - 6.38|
|52 Week Range||4.10 - 8.00|
|PE Ratio (TTM)||N/A|
|Earnings Date||Oct 24, 2018 - Oct 29, 2018|
|Forward Dividend & Yield||0.04 (0.57%)|
|1y Target Est||7.09|
Key Energy Services' previous president and CEO resigned in May to become CEO of another Houston-based energy company.
We're incredibly optimistic, probably more so than what's good for us, about Kinder Morgan, Ensco, and Tellurian.
Rowan Companies (RDC) released its second-quarter results on August 1 before the markets opened. The offshore drilling contractor earned revenue of $241 million, beating Reuters’ consensus estimate by 15.9%. On July 31, Rowan Companies announced that ARO Drilling secured six three-year contracts with Saudi Aramco for Rowan’s jackup rigs currently operating in Saudi Arabia.
On July 26, after Ensco (ESV) released its second-quarter results, Jefferies raised the company’s target price to $6.5 from $6 and maintained a “hold” rating on the stock. Earlier in the month, Susquehanna raised Ensco’s target price to $7 from $5.
Oil prices have recovered from three year lows recently amid dwindling supplies and higher export demand – and the outlook for the rest of the year is positive. Crude stocks, other than the U.S. Strategic Petroleum Reserve, are at two-year lows due to greater demand and an effort on the part of oil producers to limit supply. The International Energy Agency says oversupply appears to be ending and OPEC and 10 other producers cut a deal in December to extend production limits through the end of 2018.
The US offshore rig count in Week 30, which ended July 27, was 16, one less than the previous week and eight less YoY (year-over-year).
Offshore drilling stocks had mixed returns in Week 30, which ended July 27. The best performer during the week was Seadrill (SDRL). Noble Corporation (NE) was the weakest performer among its peers.
Rowan Companies (RDC) is set to release its second-quarter results tomorrow (August 1) before the markets open. Let’s see what analysts expect.
Transocean (RIG) released its second-quarter results yesterday after the markets closed. The company earned revenue of $790 million—3.18% higher than Reuters’s analyst estimate of $75.6 million. Revenues were 11.1% higher year-over-year and 26% higher sequentially. Transocean’s revenue was supported by higher revenue efficiency and utilization for the company’s ultra-deepwater fleet. Revenue efficiency rose to 97.4% in Q2 2018, compared to 91.5% in the prior quarter.
Ensco’s (ESV) operating cash flows represent the cash flows from its core operations. In the first half of 2018, Ensco had negative cash flows from operations of $18 million—compared to its positive cash flow of ~$130.5 million in the first half of 2017. Ensco’s capex for the first half of 2018 was $331.9 million, which included $277.7 million in a payment towards new rig construction.
In the previous two parts, we analyzed Ensco’s (ESV) revenues and costs. In this part, we’ll see where the company’s EBITDA could be heading.
Ensco’s (ESV) drilling expenses were $344 million in the second quarter—up from $291 million in the second quarter of 2017. The company’s drilling expenses rose mainly due to $47 million in costs associated with 11 Atwood Oceanics (ATW) rigs, the addition of ENSCO DS-10 into the active fleet, and $5 million in integration-related costs. Ensco expects its drilling expenses to decrease in the third quarter to $330 million.
As of June 30, Ensco (ESV) had a total contracted backlog of $2.3 billion—compared to $2.8 billion as of December 31, 2017. The decline in the company’s backlog was due to realized revenues during the first quarter—partially offset by contract extensions and new contract awards.
Ensco (ESV) expects its third-quarter revenues to be $425 million—a decrease of 7% sequentially. Lower revenues are expected due to the completion of Ensco’s contract on ENSCO 6001 and ENSCO MS-1. The lower revenues are also due to the idle period for ENSCO DS-12 before starting another contract.
Ensco (ESV) released its second-quarter results on July 2 after the markets closed. The results were followed by a conference call on July 26.
As of July 1, Diamond Offshore’s total backlog was $2.2 billion. Diamond Offshore recently launched a blockchain drilling service—the first application of industrial blockchain technology in the offshore drilling industry. On the second-quarter conference call, Diamond Offshore CEO Marc Edwards stated that the offshore drilling (XLE) market remains challenging but has started to show some improvement.
Transocean (RIG) is set to release its second-quarter results today after the markets close. Let’s see what analysts expect.
Ensco (ESV) released its second-quarter results yesterday after the markets closed. Ensco earned revenues of $459 million in the second quarter of 2018, compared to $458 million a year ago. Ensco’s revenues found support in the addition of $55 million in revenue from Atwood Oceanics’ rigs, the ENSCO DS-10‘s joining the active fleet, and an increase in utilization from 56% to 61%.