Offshore Oil Rigs
October 12, 2010 by staff
Offshore Oil Rigs, If the stock market inches higher, bargain hunting gets a little bit harder. But offshore drillers, along with related exchange traded funds (ETFs) are trading on spot price-to-earnings ratios after investors dumped shares in what appeared to be guilt by association with the BP-Gulf oil fiasco.
Offshore oil rigs drilling unit companies that rent to energy companies to trade as low as 7-1011 times estimated 2007 earnings and 6-to-7 times 2008 Returns, reports Andrew Bary for Barron’s. Wall Street has kept oil driller low ratings because of concerns related to an increase in new plant operations to come. [Oil Services ETFs: underrated?]
However, oil bulls believe that the current boom in the oil industry to continue in the coming decade as high oil and gas prices create greater demand for offshore production. Transocean (NYSE: RIG) CEO Bob Long recently stated that they “… comfortable that the price to $ 40 per barrel and maybe even $ 35 would have little or no impact on the deepwater market.” [Oil and Gas ETFs Feeling the push-pull.]
More recently, some drilling contractors, purchasing shares in an attempt to assess the value of their stocks to increase. But buybacks do not have much of a difference for most files remain slip in the past year. Other drillers have implemented better dividends, but that has not helped much valuations.
Other companies, like Rosetta Resources (NASDAQ: Rose), their exploratory oil and gas development on land to expand, writes David Fessler for InvestmentU. Rosetta was able to decrease the number of its activities in lean times to save money to reinvest in promising areas, which are now cheap. In addition, the company has its “old wells” which is still a steady stream of revenue.
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