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Diamond Offshore
Posted on 8/5/19 at 2:44 pm
Posted on 8/5/19 at 2:44 pm
Anyone have any insight as to what’s going on with this company?
I don’t have any first hand knowledge of how they operate but I was under the impression that they were a well run business.
Is it the offshore market in general, poor contracts, fleet make-up? I realize they missed earnings this morning but I’m kind of surprised their share price is down over 20%.
I don’t have any first hand knowledge of how they operate but I was under the impression that they were a well run business.
Is it the offshore market in general, poor contracts, fleet make-up? I realize they missed earnings this morning but I’m kind of surprised their share price is down over 20%.
3
Posted on 8/5/19 at 2:51 pm to Frugal
Everything oil is cratering, my a-hole is quite puckered over my riskier plays.
The offshore drilling market still has some bankruptcies and M&A to go through before it turns around imo. There is still a shite ton of new DW rigs sitting idle but it is turning around.
Iirc diamond does have full utilization of its newest rigs, Ocean Black series, which is good. Not sure if they are longterm contracts though.
The offshore drilling market still has some bankruptcies and M&A to go through before it turns around imo. There is still a shite ton of new DW rigs sitting idle but it is turning around.
Iirc diamond does have full utilization of its newest rigs, Ocean Black series, which is good. Not sure if they are longterm contracts though.
This post was edited on 8/5/19 at 2:53 pm
Posted on 8/5/19 at 3:05 pm to GREENHEAD22
It’s not like any of the deepwater players are knocking it out of the park but I felt like Diamond was weathering the storm better than others.
Curious how those in the deep water industry view their work compared to say Noble, Ensco/Rowan or Transocean?
Curious how those in the deep water industry view their work compared to say Noble, Ensco/Rowan or Transocean?
Posted on 8/5/19 at 3:11 pm to Frugal
Been on them all, no real difference except with ENSCO. All the newer rigs are all samsung builds and pretty much the same. Rowan had the nicest setups.
Posted on 8/5/19 at 3:37 pm to GREENHEAD22
I think the blackhawk and black hornet have been with anadarko since before the downturn on a pretty high dayrate. I know the blackrhino and blacklion have been with Hess since before the downturn for somewhere around 500k/day. All 4 come off contract by end of 2019 or beginning of 2020. I think all 4 are due for a drydocking before starting their new charters which are all under 200k/day I think
Posted on 8/5/19 at 3:44 pm to Frugal
Here is the real question to me. I am hearing the fracking business model of a lot of shale companies in the Permian is turning out not to be viable. That all they do is burn cash. I am hearing about another round of bankruptcies and that Wall Street is getting out. I have owned both CDEV and CRZO recently and both have crashed. If fracking in the Permian etc is not viable who benefits? Will offshore DO, NE, RIG benefit. I don't know. Does anybody know?
Posted on 8/5/19 at 3:46 pm to Captain Crackysack
I thought the hawk got dropped awhile back? Either way all of then coming off of contract probably has something to do with the big price drop.
This post was edited on 8/5/19 at 3:51 pm
Posted on 8/5/19 at 4:33 pm to frogtown
I’ve heard similar from someone that recently left NOV for a new career outside of oil and gas. So what happens if Wall Street has had “enough”?
Posted on 8/5/19 at 4:36 pm to Frugal
quote:
So what happens if Wall Street has had “enough”?
Posted on 8/5/19 at 4:58 pm to frogtown
quote:
Here is the real question to me. I am hearing the fracking business model of a lot of shale companies in the Permian is turning out not to be viable. That all they do is burn cash. I am hearing about another round of bankruptcies and that Wall Street is getting out. I have owned both CDEV and CRZO recently and both have crashed. If fracking in the Permian etc is not viable who benefits? Will offshore DO, NE, RIG benefit. I don't know. Does anybody know?
Most of this is correct, but the Permian is viable. The idiot management teams once again over promised and have under delivered and wall street, having been burned twice have said frick you and sent the industry tumbling (prod prices helping). Outside of Cvx, xom, eog and maybe cop, I wouldn’t invest in upstream or midstream right now. Layoffs through bks and m&a are going to be massive.
Posted on 8/5/19 at 5:31 pm to GREENHEAD22
I would imagine the current market bodes well for offshore activity though. Drillships can be had pretty cheaply right now, and I know alot of the warm stacked tonnage in the gulf is being activated and moved to other markets. There has been a handful of rigs relocated to Guyana and Mexico for sure. And two of the diamond rigs are going to Senegal next year. There is still too much available tonnage on the drilling and supply side but activity should continue to creep up offshore
Posted on 8/5/19 at 5:33 pm to cwill
quote:plenty of value in midstream right now. I think most of the midstream companies wised up.
I wouldn’t invest in upstream or midstream right now.
Doesn't appear upstream has learned their lesson. I guess maybe they don't want to.
Posted on 8/5/19 at 11:14 pm to Frugal
quote:
Anyone have any insight as to what’s going on with this company?
I don’t have any first hand knowledge of how they operate but I was under the impression that they were a well run business.
Is it the offshore market in general, poor contracts, fleet make-up? I realize they missed earnings this morning but I’m kind of surprised their share price is down over 20%.
I would not touch any offshore drilling contractor with a 10ft pole right now, lack of CAPEX is going to fuel too many discounts as they scramble around looking for work.
I expect their prices will continue to drop for the next 18 months barring some major geopolitical event.
Posted on 8/14/19 at 9:38 am to cave canem
bump
Posted on 8/14/19 at 11:03 am to cave canem
Another great day in upstream energy!
Posted on 8/14/19 at 11:04 am to cwill
$$$$$$$$$$$
Posted on 8/14/19 at 11:09 am to barry
Upstream E&P 2005-2014:
Upstream E&P since 2018:
Upstream E&P since 2018:
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