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Rowan (RDC) Purchases LeTourneau Super 116E Rigs for $77M
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Rowan Companies plc completed the acquisition of two LeTourneau Super 116E jack-up rigs — the P-59 and P-60 — for $38.5 million per unit.
The rigs, which were delivered into service in 2013, were purchased in a public auction from a subsidiary of Petroleo Brasileiro S.A. or Petrobras (PBR - Free Report) .
In May 11, 2017, it was reported that Rowan was the highest bidder in a Petrobras public auction with a bid of $30 million per rig. However, the price was unacceptable to Petrobras. After discussions, the parties settled on the revised price. During the end of first-quarter 2018, Rowan plans to mobilize these modern jack-ups to the Middle East from their present location in Brazil.
Subsequent to the completion of latest contract, Rowan announced that it divested the Cecil Provine in November 2017 for scrap and has cold-stacked the Gorilla IV. Moreover, since mid-2015, the company has also sold five older jack-ups — Rowan Louisiana, Rowan Juneau, Rowan Alaska, Rowan Gorilla II and Rowan Gorilla III.
Hence, the addition of these two rigs during a cyclical low at a very attractive price will revamp the Rowan fleet and boost the company's future earnings capability. Owing to Rowan’s years of expertise in this industry, it is very familiar with the design and construction of these rigs. Rowan is confident about the ability to incorporate these jack-ups into i existing fleet and produce strong financial returns from this investment.
Price Performance
Rowan’s shares have increased 28.4% compared with the industry’s rally of 12.1% in the last three months.
Zacks Rank & Key Picks
Rowan carries a Zacks Rank #3 (Hold). A few better-ranked players in the energy sector include Pioneer Natural Resources Company , and Northern Oil and Gas Inc (NOG - Free Report) . Both these stocks sport a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Headquartered in Irving, TX, Pioneer Natural Resources Company is an independent oil and gas exploration and production company. The company delivered an average positive earnings surprise of 67.62% in the last four quarters.
Northern Oil and Gas, based in Minnetonka, MN, is an independent energy company. The company delivered an average positive earnings surprise of 175.00% during the same time frame.
5 Medical Stocks to Buy Now
Zacks names 5 companies poised to ride a medical breakthrough that is targeting cures for leukemia, AIDS, muscular dystrophy, hemophilia and other conditions.
New products in this field are already generating substantial revenue and even more wondrous treatments are in the pipeline. Early investors could realize exceptional profits.
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Rowan (RDC) Purchases LeTourneau Super 116E Rigs for $77M
Rowan Companies plc completed the acquisition of two LeTourneau Super 116E jack-up rigs — the P-59 and P-60 — for $38.5 million per unit.
The rigs, which were delivered into service in 2013, were purchased in a public auction from a subsidiary of Petroleo Brasileiro S.A. or Petrobras (PBR - Free Report) .
In May 11, 2017, it was reported that Rowan was the highest bidder in a Petrobras public auction with a bid of $30 million per rig. However, the price was unacceptable to Petrobras. After discussions, the parties settled on the revised price. During the end of first-quarter 2018, Rowan plans to mobilize these modern jack-ups to the Middle East from their present location in Brazil.
Subsequent to the completion of latest contract, Rowan announced that it divested the Cecil Provine in November 2017 for scrap and has cold-stacked the Gorilla IV. Moreover, since mid-2015, the company has also sold five older jack-ups — Rowan Louisiana, Rowan Juneau, Rowan Alaska, Rowan Gorilla II and Rowan Gorilla III.
Hence, the addition of these two rigs during a cyclical low at a very attractive price will revamp the Rowan fleet and boost the company's future earnings capability. Owing to Rowan’s years of expertise in this industry, it is very familiar with the design and construction of these rigs. Rowan is confident about the ability to incorporate these jack-ups into i existing fleet and produce strong financial returns from this investment.
Price Performance
Rowan’s shares have increased 28.4% compared with the industry’s rally of 12.1% in the last three months.
Zacks Rank & Key Picks
Rowan carries a Zacks Rank #3 (Hold). A few better-ranked players in the energy sector include Pioneer Natural Resources Company , and Northern Oil and Gas Inc (NOG - Free Report) . Both these stocks sport a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Headquartered in Irving, TX, Pioneer Natural Resources Company is an independent oil and gas exploration and production company. The company delivered an average positive earnings surprise of 67.62% in the last four quarters.
Northern Oil and Gas, based in Minnetonka, MN, is an independent energy company. The company delivered an average positive earnings surprise of 175.00% during the same time frame.
5 Medical Stocks to Buy Now
Zacks names 5 companies poised to ride a medical breakthrough that is targeting cures for leukemia, AIDS, muscular dystrophy, hemophilia and other conditions.
New products in this field are already generating substantial revenue and even more wondrous treatments are in the pipeline. Early investors could realize exceptional profits.
Click here to see the 5 stocks >>