Goldman Sachs (NYSE:GS) has been slashing ratings of oil companies today in light of their belief the moratorium on drilling in the Gulf will be extended, and consequently Atwood Oceanics (NYSE:ATW) was cut to a "Sell" by the financial giant.
The current six-month moratorium on drilling for oil in the Gulf of Mexico being extended to 12 months was the impetus behind Goldman's cut, which will have an effect of cutting production by around 20 percent overall globally.
Atwood was down to $24.28, or $1.73, a 6.65 percent fall, as of 12:02 PM EDT.
Analysts at Goldman Sachs say it could be 2012 before significant drilling in the Gulf continues.
Showing posts with label Atwood Oceanics. Show all posts
Showing posts with label Atwood Oceanics. Show all posts
Tuesday, June 8, 2010
Goldman Sachs (NYSE:GS) Cuts Ratings on Transocean (NYSE:RIG), Atwood Oceanics (NYSE:ATW), Diamond Offshore (NYSE:DO) and Noble (NYSE:NE)
Ratings on offshore oil drillers Transocean (NYSE:RIG), Atwood Oceanics (NYSE:ATW), Diamond Offshore (NYSE:DO) and Noble (NYSE:NE) were cut by Goldman Sachs (NYSE:GS) today.
The primary mover of Goldman's decision was the probability the existing drilling moratorium of six months will be extended to twelve months, which will devastate the industry if it occurs.
With Obama under extreme pressure, it's doubtful he has the political will to change this, and we'll probably see the extension become a reality.
Overall this will affect about 20 percent of global oil capacity, which will continue to pressure pricing.
All the stocks were down big just before noon EDT.
The primary mover of Goldman's decision was the probability the existing drilling moratorium of six months will be extended to twelve months, which will devastate the industry if it occurs.
With Obama under extreme pressure, it's doubtful he has the political will to change this, and we'll probably see the extension become a reality.
Overall this will affect about 20 percent of global oil capacity, which will continue to pressure pricing.
All the stocks were down big just before noon EDT.
Wednesday, May 5, 2010
Atwood Oceanics (NYSE:ATW), Patterson-UTI Energy (Nasdaq:PTEN), SandRidge Energy (NYSE:SD) Expected to Soar
Over the next several years, analysts have said that companies like Atwood Oceanics (NYSE:ATW), Patterson-UTI Energy (Nasdaq:PTEN), SandRidge Energy (NYSE:SD) are expected to soar, as the overall oil and gas drilling and exploration industry will grow earnings a share by over 8.6 percent.
Atwood Oceanics looks like it's going to perform strong during that time, beating the industry during next five years, with projections their earnings per share will rise by 20 percent.
The latest quarterly results for Atwood had them handily beating estimates, with earnings coming to $1.03 a share, far above the 91 cents a share analysts were looking for.
Earning per share for SandRidge Energy are projected to rise by 10 percent in the next five years, while Patterson-UTI Energy has a earnings per share estimate of 5 percent.
Atwood Oceanics looks like it's going to perform strong during that time, beating the industry during next five years, with projections their earnings per share will rise by 20 percent.
The latest quarterly results for Atwood had them handily beating estimates, with earnings coming to $1.03 a share, far above the 91 cents a share analysts were looking for.
Earning per share for SandRidge Energy are projected to rise by 10 percent in the next five years, while Patterson-UTI Energy has a earnings per share estimate of 5 percent.
Monday, April 5, 2010
Will Halliburton (NYSE: HAL), Baker Hughes (NYSE:BHI) Benefit from More Oil and Gas Exploration?
Halliburton and Baker Hughes
This is a no brainer of course, there is no doubt the decision to allow more drilling off the Coasts of the U.S. by Obama will be a big boost to exploration companies like Halliburton (NYSE:HAL) and Baker Hughes (NYSE:BHI).
Oil drilling companies like Atwood Oceanics (NYSE:ATW) and Transocean (NYSE:RIG), and others like them, should benefit as oil and gas resources are discovered.
Assuming they were part of the action, other types of companies which would probably profit from it are Devon Energy (NYSE:DVN) and EOG Resources (NYSE:EOG).
Some are trying to say certain parts of the coastlines being released for drilling won't produce much in the way of oil and gas, but that's simply speculation and wishful thinking.
We have no idea how much may be out there, and until the exploration and drilling takes place, we won't have an answer.
These are of course long-term plays, but something to keep in mind as the exploration and drilling gets underway in the years ahead.
This is a no brainer of course, there is no doubt the decision to allow more drilling off the Coasts of the U.S. by Obama will be a big boost to exploration companies like Halliburton (NYSE:HAL) and Baker Hughes (NYSE:BHI).
Oil drilling companies like Atwood Oceanics (NYSE:ATW) and Transocean (NYSE:RIG), and others like them, should benefit as oil and gas resources are discovered.
Assuming they were part of the action, other types of companies which would probably profit from it are Devon Energy (NYSE:DVN) and EOG Resources (NYSE:EOG).
Some are trying to say certain parts of the coastlines being released for drilling won't produce much in the way of oil and gas, but that's simply speculation and wishful thinking.
We have no idea how much may be out there, and until the exploration and drilling takes place, we won't have an answer.
These are of course long-term plays, but something to keep in mind as the exploration and drilling gets underway in the years ahead.
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