Offshore drilling giant Transocean LTD (NYSE:RIG) recently issued a Fleet Status Report for the period commencing Nov 18, 2013, to date. The value of all the new deals and contract extensions in the same time frame is estimated at roughly $292.0 million.
The update covers the company’s offshore drilling rig status and contract information. The expected out-of-service time for 2013 has fallen by 16 days while the same for 2014 was down by 36 days.
Per the report, Cajun Express, a 5th Generation Deepwater rig, received a contract to operate six wells. The rig will be working at a dayrate of $495,000, lower than the previous rate of $600,000. The deal will add roughly $181.0 million to the backlog.
Also included in the report, Deepwater Discovery, a 5th Generation Deepwater rig, has entered into an agreement to work for eight months. The rig will be operating for a dayrate of $461,000. Moreover, the agreement is expected to add $111.0 million to the existing backlog.
Transocean LTD (NYSE:RIG) added that GSF Monitor, a High Specification Jackup, is now out of contract.
Switzerland-based Transocean is the world’s largest offshore drilling contractor and a leading provider of drilling management services worldwide.
Transocean LTD (NYSE:RIG) currently holds a Zacks Rank #2 (Buy), implying that it is expected to outperform the broader U.S. equity market over the next one to three months.
One can also consider other players in the oil and gas drilling sector like Pacific Drilling SA (NYSE:PACD), Tesco Corporation (USA) (NASDAQ:TESO) and Helmerich & Payne, Inc. (NYSE:HP). Pacific Drilling and Tesco sport a Zacks Rank #1 (Strong Buy), while Helmerich & Payne carries a Zacks Rank #2 (Buy).
Disclaimer: This article is written by Zacks Equity Research and originally published at Zacks.com.