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Transocean (RIG) Signs a $251M Contract for Barents Rig

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Transocean Ltd. (RIG - Free Report) , an international provider of offshore contract drilling services for oil and gas wells, announced a significant contract for its Transocean Barents rig in the Romanian Black Sea.

The company revealed on Tuesday that it has inked a minimum 540-day contract with OMV Petrom S.A. at a daily rate of $465,000, excluding additional services. The program is slated to commence in the first quarter of 2025, marking a strategic move for Transocean into the challenging environmental conditions of the Romanian Black Sea.

The contract is expected to contribute approximately $251 million to Transocean's backlog, excluding full compensation for mobilization and a demobilization fee.

According to Transocean, the day rate for the contract includes provisions for additional services. Moreover, for each day beyond the initial 540 days, including two option periods, the operating day rate will increase to $480,000. This provides RIG with the potential for additional revenues if the contract extends beyond the originally stipulated duration.

Zacks Rank & Key Picks

Transocean currently carries a Zack Rank #3 (Hold).

Some better-ranked stocks in the energy sector are The Williams Companies, Inc. (WMB - Free Report) , Matador Resources Company (MTDR - Free Report) and Liberty Energy Inc. (LBRT - Free Report) . While Williams Companies sports a Zacks Rank #1 (Strong Buy), both Matador Resources and Liberty Energy carry a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.

The Williams Companies is well-positioned to capitalize on the anticipated substantial long-term growth in U.S. natural gas demand, thanks to its impressive portfolio of large-scale projects that create significant value. The company’s debt maturity profile is in good shape with its $4.5 billion revolver maturing in 2023.

WMB’s earnings beat estimates in each of the trailing four quarters, delivering an average surprise of 13.68%.

Matador Resources is among the leading oil and gas explorers in the shale and unconventional resources in the United States. The company’s prime intention is to create more value for shareholders and generate lucrative returns from the capital invested in unconventional plays.

MTDR’s earnings beat estimates in each of the trailing four quarters, delivering an average surprise of 13.89%.

Liberty Energy is a North American provider of hydraulic fracturing services to upstream energy operators. The company’s multi-basin presence offers an attractive upside opportunity compared with most of its peers. Its strong relationship with high-quality customers provides revenue visibility and business certainty.

LBRT’s earnings beat estimates in three of the trailing four quarters and missed once, delivering an average surprise of 9.88%.


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