Transocean Ltd. (RIG)

[surfer44]

Who gets excited anymore?

[eastunder]

3 Under-$10 Oil & Gas Stocks to Buy for 100% Returns in 2025

https://investorplace.com/2024/07/3-under-10-oil-gas-stocks-to-buy-for-100-returns-in-2025/

#3 ...

Transocean (RIG)


Transocean (NYSE:RIG) is another undervalued offshore drilling services provider. However, unlike Borr Drilling, the company is focused on harsh environments and ultradeep-water rigs. RIG stock has corrected sharply by almost 40% in the last 12 months, and I see this as a good buying opportunity.

The first point to note is that Transocean reported an order backlog of $8.9 billion as of April. The backlog is front-end loaded and provides clear revenue and cash flow visibility.

Further, Transocean is focused on deleveraging. In the next few years, credit metrics are likely to improve on a sustained basis. The offshore driller has guided for year-end liquidity of $1.4 billion.

With high financial flexibility, there is a case for fleet expansion to boost growth. The company already has a modern fleet with an average age of 12 years. Overall, Transocean is positioned for steady growth and deleveraging. As oil trends higher, the backlog is likely to swell further. RIG stock, therefore, seems undervalued after a deep correction.

On the date of publication, Faisal Humayun did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.

On the date of publication, the responsible editor did not have (either directly or indirectly) any positions in the securities mentioned in this article.

Faisal Humayun is a senior research analyst with 12 years of industry experience in the field of credit research, equity research and financial modeling. Faisal has authored over 1,500 stock specific articles with focus on the technology, energy and commodities sector.

[eastunder]

Day 4 of a nice move.



Cpps 5.63

and First time over the 50d in 30 days

[eastunder]

I don't think so. People just cheerlead differently. ;)

By all means - Continue on.

[The DMan]

Another + Day... Am I the only Cheerleader for RIG ?? WTF... ??

[The DMan]

Good Day You " Hosers" Nice gainer today ! I.S.A meeting in Jamaica.... { International Sea Bed Auth} going to write the new Mining Code this month...... Thoughts .... Would effect RIG and TMC I would think. GLTA D Man

[Mother Lode]

Addendum:
Hayfin Specialty Opportunities Fund II LP is shown as holding 55.5 million shares of RIG

[Mother Lode]

Hard to say. It just looks like a type of asset swap to me. Hayfin loses their 2/3's share in Norge for the shares in RIG. I would assume that 100% of the day rate now goes to RIG. So I guess that could be viewed as an exchange of money, but who knows

I also see where Met life is looking at acquiring Hayfin so maybe they are looking to adjust their loan portfolio. Depending on how hayfin views the possible buyout.
At this point your guess is as good as mine

"MetLife, Inc. MET is reportedly in talks to acquire Hayfin Capital Management, a London-based private credit specialist, per Bloomberg. The potential deal might value Hayfin Capital Management at $1.3 billion. The company has been looking to divest its operations for the past year and has even attracted interest from several parties."

[eastunder]

Sec filings link

RIG Sec filings

[eastunder]

The prospectus on that was filed 6/28

https://www.sec.gov/Archives/edgar/data/1451505/000145150524000088/tmb-20240628xs3asr.htm

On June 28, 2024, Transocean Ltd. and certain subsidiaries of Transocean Ltd. entered into a share purchase agreement (the “SPA”) with certain funds managed and/or advised by Hayfin Capital Management LLP and/or its affiliates (together, “Hayfin”), pursuant to which Transocean Ltd. agreed to cause to be issued (i) 55,513,043 shares, USD 0.10 par value each, of Transocean Ltd. (such shares, referred to as “registrable securities”) and (ii) $130 million aggregate principal amount of our 8.00% Senior Notes due 2027, as “Additional Securities” pursuant to our indenture dated January 17, 2020 (such notes, referred to as the “notes”), to Hayfin in exchange for the acquisition by Transocean of Hayfin’s 67.0% ownership interest in the joint venture (the “Joint Venture”) that owns the Transocean Norge. The transactions contemplated by the aforementioned share purchase agreement were consummated on June 28, 2024, including the issuance of the registrable securities and the notes to Hayfin, and we have agreed that we will file a registration statement registering the resale of all of the registrable securities (but not the notes). This registration statement is being filed to satisfy this obligation.

The registration rights described above will terminate when the selling securityholders no longer beneficially own any registrable securities or when all registrable securities owned by all of the selling securityholders may be freely resold pursuant to Rule 144 promulgated under the Securities Act without regard to any limitations thereunder.

This prospectus is not an offer to sell or a solicitation of an offer to buy the notes. The SPA and related transactions are further described in our current report on Form 8-K, filed with the SEC on June 28, 2024.

and on 7/9 a 13G was filed

https://www.sec.gov/Archives/edgar/data/1451505/000095015724000971/0000950157-24-000971-index.htm

Which doesn't appear to show any thing sold yet. I'm reading that wrong, aren't I?

[Mother Lode]

Transocean Hayfin deal. It appears they have traded shares for Hayfin's interest in Transocean's Norge

https://lvs.freeforums.net/thread/22915/transocean-issues-shares-hayfin-norge

[eastunder]

This is a walk down memory lane... number 18 on the board was my first RIG post.

It looks like this...

RIG: UBS Securities Starts @ Buy; Sets Tgt @ $201; Analyst Notes

Thursday , May 15, 2008 09:10ET

Issuer: Transocean Inc (NYSE: RIG)

Analyst Firm: UBS Securities Inc.

Ratings Action: INITIATE

Current Rating: Buy

Target Price Action: INITIATE
Target Price: $201.00

Analyst Comments: RIG is UBS's Top Pick as they believe it is the primary beneficiary of rising deepwater dayrates.

This rating information was reported by TheFlyOnTheWall.

[eastunder]

RIG cpps 5.18

[eastunder]

Hello!

That info is easy to google and If my memory serves me right - There was a pretty long period where being in any oil stock was mind shattering.

Here's a quick article I found by googling "What happened to Transocean in 2014." ;)

https://www.fool.com/investing/general/2014/08/28/why-transocean-ltd-stock-has-plunged-21-in-2014.aspx

Also - fun to note...

RIG did fall below a dollar once upon a time. Now that was something! That was on BK fears. Which BK never happened.

[The DMan]

Good Day ..today. No news .. Anyone got anything ? Pretty quiet Board for a company this size ..... D Man

[The DMan]

Thx .... you Mother.....

[Mother Lode]

"Transocean's (RIG) Deepwater Aquila Begins Work Offshore Brazil"

https://www.zacks.com/stock/news/2296491/transoceans-rig-deepwater-aquila-begins-work-offshore-brazil

[The DMan]

2 for 3 plus days..... since The D man in da houze !! GLTA

[Mother Lode]

"Why Big Investors Are Doubling Down Right Now on Oil & Gas Stocks"


https://oilprice.com/Energy/Energy-General/Why-Big-Investors-Are-Doubling-Down-Right-Now-on-Oil-Gas-Stocks.html

[Mother Lode]

"Transocean Ltd. Announces $188 Million Ultra-Deepwater Drillship Contract Extension"

https://www.globenewswire.com/news-release/2024/06/26/2904360/0/en/Transocean-Ltd-Announces-188-Million-Ultra-Deepwater-Drillship-Contract-Extension.html

[The DMan]

Greetings All, Yesterday took a first time position in RIG 2500 units. Can anyone tell me what happened from July 1 2014 @ 45.00 and then a crash to 15.00 in March 2015 ?? Have never followed RIG until yesterday Thinking they might play a role in the Deep Sea mining space. Hope my entry will bring us good fortune, But today was not a good start...... GLTA D Man Toronto Can

[Mother Lode]

"Brazil's Oil Surge Set to Challenge OPEC's Market Strategy"

https://oilprice.com/Energy/Crude-Oil/Brazils-Oil-Surge-Set-to-Challenge-OPECs-Market-Strategy.html

[Hawkeye_tt]

Too much debt to service......

Hawk

[Mother Lode]

seems to be some consolidation in the offshore industry. Would indicate (to me) demand for those services
DO restructured itself via chapter 11 so it probably got rid of a lot of debt. Unlike RIG

"HOUSTON, April 26, 2021 /PRNewswire/ -- Diamond Offshore Drilling, Inc. ("Diamond" or the "Company") announced today that, on April 23, 2021, it and its debtor affiliates emerged from their chapter 11 process after successfully completing a financial reorganization pursuant to their joint plan of reorganization.

The restructuring significantly delevers the Company's balance sheet and provides substantial liquidity for the Company, resulting in the equitization of approximately $2.1 billion in senior unsecured note obligations and providing the Company with over $625 million of new available capital."

[eastunder]

I wish someone would buy Transocean . ;)

[Mother Lode]

"Noble to Buy Diamond Offshore As Oil and Gas Mergers Continue"

"Noble Corporation is set to buy Diamond Offshore Drilling in a stock-and-cash deal valued at $1.6 billion as the oil and gas mergers continue with the oilfield services sector.

Noble and Diamond Offshore said on Monday that they had entered into a definitive merger agreement under which Noble will acquire Diamond in a stock plus cash deal. As part of the transaction, Diamond shareholders will receive 0.2316 shares of Noble, plus cash consideration of $5.65 per share for each share of Diamond stock.
The implied cash and stock consideration to be received by Diamond shareholders is $15.52 per share, representing a premium of 11.4% to Diamond's closing share price on June 7, 2024."

https://oilprice.com/Latest-Energy-News/World-News/Noble-to-Buy-Diamond-Offshore-As-Oil-and-Gas-Mergers-Continue.html

[Hawkeye_tt]

In for the Swing again....trade it.

Hawk

[Mother Lode]

On May 27, 2024 Refinitiv/Verus upgraded Transocean (RIG.NaE) from HOLD to BUY.

[Mother Lode]

according to Fidelity short interest is around 18%

[Mother Lode]

"Transocean Insider Bought Shares Worth $12,020,000, According to a Recent SEC Filing"

https://finance.yahoo.com/news/transocean-insider-bought-shares-worth-214741027.html

[Mother Lode]

On 5/17/2024:
Mohn Frederik Wilhelm: bought 2 million shares
Perestroika: bought 2 million shares
Perestroika (Cyprus) Ltd: bought 2 million shares

6 million shares controlled by one guy

[Mother Lode]

"Memorial Day Travel Expected to Near Record High"

https://oilprice.com/Energy/Energy-General/Memorial-Day-Travel-Expected-to-Near-Record-High.html

[Mother Lode]

i would like to know what the net effect of retiring the old and issuance of the new debt is

[eastunder]

RIG Q1 2024 Earnings Transcript

https://finance.yahoo.com/news/transocean-rig-q1-2024-earnings-211512559.html

[Mother Lode]

Don't know. I always wait for the transcript.

[eastunder]

That's fair.

I'm curious what happened in their conference call.

[Mother Lode]

as far as I can see most of the energy sector is down. Even CCJ Uranium.

[eastunder]

Transocean Ltd. Reports First Quarter 2024 Results
17:24:00 PM ET, 04/29/2024 - GlobeNewswire

	Three months ended	 March 31, 2024	 	December 31,2023    Sequential change 
 (In millions, except per share amounts and backlog)	 	 	 	 	 	 	 	 	 	 	  
 Contract drilling revenues	        $763	 	 	$741	 	 	 $22	 	  
 Adjusted contract drilling revenues	$767	 	 	$748	 	 	 $19	 	  
 Revenue efficiency(1)	 	        92.9%  	 	        97.0%  	 	 	(4.1)%   
 Operating and maintenance expense	$523	 	        $569	 	        $(46)	  
 Net income (loss) attrib. to con. int.	$98	                $(104)	 	 	$202	 	  
 Diluted earnings (loss) per share	$0.11	 	 	$(0.13)	 	 	$0.24	 	  
  	 	 	 	 	 	 	 	 	 	 	  
 Adjusted EBITDA	                $199	 	 	$122	 	 	$77	 	  
 Adjusted EBITDA margin	 	        26.0 %  	 	 16.3%  	 	9.7%   
 Adjusted net loss	                $(22)	 	 	$(74)	 	        $52	 	  
 Adjusted diluted loss per share	$(0.03)	 	 	$(0.09)	 	 	$0.06	

Backlog as of the April 2024 Fleet Status Report $ 8.9 billion

STEINHAUSEN, Switzerland, April 29, 2024 (GLOBE NEWSWIRE) -- Transocean Ltd. (NYSE: RIG) today reported a net income attributable to controlling interest of $98 million, $0.11 per diluted share, for the three months ended March 31, 2024.

First quarter results included net favorable items of $120 million, $0.14 per diluted share, primarily due to $121 million discrete tax items, net.

After consideration of these net favorable items, first quarter 2024 adjusted net loss was $22 million, $0.03 per diluted share.

Contract drilling revenues for the three months ended March 31, 2024, increased sequentially by $22 million to $763 million, primarily due to increased activity for rigs that returned to work or were fully active this quarter after undergoing contract preparation, higher dayrate and higher reimbursable revenue. This was partially offset by lower revenue efficiency across the fleet, particularly on Deepwater Titan which experienced significant unscheduled downtime related to its blowout preventer, and one less day in the quarter. Deepwater Titan has since resumed dayrate operations.

Contract intangible amortization represented a non-cash revenue reduction of $4 million, compared to $7 million in the prior quarter. The contract intangible assets are now fully amortized.

Operating and maintenance expense was $523 million, compared with $569 million in the prior quarter. The sequential decrease was primarily due to cost savings on rigs that were idle in the first quarter, reduced contract preparation expenses, and lower in-service maintenance cost on the operating fleet. This was partially offset by higher reimbursed expenses.

After consideration of the favorable adjustment of $10 million and $145 million in the first and fourth quarter, respectively, for the fair value of the bifurcated exchange feature related to the 4.625% exchangeable bonds, interest expense net of capitalized amounts was $127 million, compared to $142 million in the prior period. Interest income was $15 million, compared to $10 million in the previous quarter.

The Effective Tax Rate(2) was 206.0%, up from (25.0)% in the prior quarter. The increase was primarily due to changes in deferred taxes related to rig ownership changes, rig movement and contract expirations across multiple jurisdictions. The Effective Tax Rate excluding discrete items was 76.9% compared to (30.0)% in the previous quarter.

Cash used in operating activities was $86 million during the first quarter of 2024, representing a decrease of $184 million compared to cash provided by operations in the prior quarter. The sequential decrease was primarily due to increased payments that regularly occur in the first quarter of each year for payroll-related costs and interest expense.

First quarter 2024 capital expenditures of $83 million were primarily associated with the newbuild ultra-deepwater drillship Deepwater Aquila. This compares with $220 million in the prior quarter.

“Over the first months of 2024, Transocean has achieved some fairly significant milestones. First, we secured a 365-day extension on Deepwater Asgard at a rate of $505,000 per day, once again demonstrating the sustained tightness in the high-specification floater market as well as Transocean’s ability to command industry-leading dayrates,” said Chief Executive Officer Jeremy Thigpen. “Additionally, earlier this month we finalized a $1.8 billion debt refinancing transaction, enabling us to improve near-term liquidity and start the process of simplifying our balance sheet. We also completed the extension of our revolving credit facility to mid-2028, further enhancing our financial flexibility.”

Thigpen concluded, “Looking ahead, we remain encouraged by the demand outlook and expect to see numerous long-term contracts awarded over the next several months. As we work to secure those contracts, we will remain acutely focused on operational execution across our fleet, as we endeavor to maximize the conversion of our industry-leading backlog to cash.”

[benchman]

Yep. Best report I have seen from them in years, and we fall :-/

[eastunder]

Things that make you think ...WTH is happening? LOL

RIG 5.27 down .545 (-9.36%) on below ave volume 8:36 am MT on Earnings...

Transocean Swings to Q1 Earnings, Revenue Increases
05:12 AM EDT, 04/30/2024 (MT Newswires) -- Transocean (RIG) reported Q1 earnings of $0.11 per share, swinging from a loss of $0.64 a year earlier.

Analysts polled by Capital IQ expected a loss of $0.17.

Contract drilling revenue for the quarter ended March 31 was $763 million, up from $649 million a year earlier.

Analysts surveyed by Capital IQ expected $779.9 million.

[eastunder]

Lucky them.

[Mother Lode]

a lot of short interest (129.5 million. Approximately 18%)

[benchman]

First profit in a long time. Exceeded expectations there for sure. Not much market reaction yet though. $RIG

[Mother Lode]

"Transocean Ltd (RIG) Q1 2024 Earnings: Surpasses Analyst Revenue Forecasts, Adjusts to Market ..."

https://finance.yahoo.com/news/transocean-ltd-rig-q1-2024-113308802.html

[eastunder]

Reminder; Earnings after the bell today 4/29/24

Transocean Ltd. Announces First Quarter 2024 Earnings Release Date
April 10, 2024 16:23 ET
| Source: Transocean Ltd.

STEINHAUSEN, Switzerland, April 10, 2024 (GLOBE NEWSWIRE) -- Transocean Ltd. (NYSE: RIG) announced today that it will report earnings for the first quarter 2024 on Monday, April 29, 2024.

The company will conduct a teleconference to discuss the results starting at 9 a.m. EDT, 3 p.m. CEST, on Tuesday, April 30, 2024. Individuals who wish to participate should dial [phone] and refer to conference code 102568 approximately 15 minutes prior to the scheduled start time.

The teleconference will be simulcast in a listen-only mode at: www.deepwater.com, by selecting Investors, News, and Webcasts. A replay of the conference call will be available after 12 p.m. EDT, 6 p.m. CEST, on April 30, 2024. The replay, which will be archived for approximately 30 days, can be accessed at [phone], passcode 102568. The replay also will be available on the company's website.

[Mother Lode]

"Transocean (RIG) to Support Equinor's Barents Sea Endeavours"

https://www.zacks.com/stock/news/2263864/transocean-rig-to-support-equinors-barents-sea-endeavours

[Mother Lode]

"TotalEnergies Beats Q1 Profit Forecast Despite Lower Natural Gas Prices
https://oilprice.com/Latest-Energy-News/World-News/TotalEnergies-Beats-Q1-Profit-Forecast-Despite-Lower-Natural-Gas-Prices.html
---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
"Transocean (RIG) Prolongs Its Stay With Hess and TotalEnergies"

https://www.zacks.com/stock/news/2262525/transocean-rig-prolongs-its-stay-with-hess-and-totalenergies

[Mother Lode]

"Equinor Beats Q1 Earnings Expectations as Oil and Gas Output Jumps"

https://oilprice.com/Latest-Energy-News/World-News/Equinor-Beats-Q1-Earnings-Expectations-as-Oil-and-Gas-Output-Jumps.html

[Mother Lode]

"Biden Unlikely to Strictly Enforce Sanctions on Iranian Oil Ahead of Elections"

https://oilprice.com/Latest-Energy-News/World-News/Biden-Unlikely-to-Strictly-Enforce-Sanctions-on-Iranian-Oil-Ahead-of-Elections.html

[Hawkeye_tt]

As mentioned before, this continues to be a good Swing Trade. Has pd. well many times....
GL all.
Hawk