Offshore Drilling

Energy


Publicly traded companies mentioned herein: Noble Energy (NBL), Seadrill (SDRL), Transocean (RIG), National Oilwell Varco (NOV), Rowan Companies (RDC), Cameron (CAM), Pacific Drilling SA (PACD). Hercules Offshore (HERO), Exxon Mobil (XOM), Royal Dutch Shell (RDSA), BP plc (BP), Vallourec SA (VK FP), Tenaris SA (TS), Petroleo Brasileiro SA (PETR4 BZ), Ensco (ESV)

Highlights

Given his outlook for global E&P capex, the presenter is “short everything that touches offshore drilling.” At the core of his thesis is the belief that all of offshore drillers’ dividends are at risk of being cut over the next 12-18 months, and generally speaking these stocks should re rate if that were to happen. His preferred way to play this theme is to be short a basket of “everything” until the dividends are cut. Companies that meet his criteria include, but are not limited to: Transocean, Ensco, National Oilwell Varco, Seadrill, Rowan, Cameron, and Tenaris and Vallourec, among others.

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Idea Discussion

Commentor 1 - 2 weeks ago

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