The Energy Report
Notable Quotes
"With the LOI signed, we urge investors to bolster positions in FCU." (12/22/15) Fission Uranium Corp. - David Sadowski, Raymond James More >
"FCU is taking the right steps regardless of whether PLS is ultimately acquired or developed into a mine." (12/22/15) Fission Uranium Corp. - Heiko Ihle, Rodman & Renshaw More >
"I am quite excited about POE in 2016." (12/16/15) Pan Orient Energy Corp. - Chen Lin, What Is Chen Buying? What Is Chen Selling? More >
"BKX's Oklahoma asset has significant value." (12/16/15) BNK Petroleum Inc. - Michael Charlton, iA Securities More >
"EFR is one of the few companies in a position to write long-term sales contracts and deliver into them at several times its current production rate." (12/17/15) Energy Fuels Inc. - The Gold Report Interview with Eric Coffin More >
Macquarie Upgrades RIG to Outperform
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WAQAR SYED, Macquarie Equities Research
(05/26/2010)
"We are upgrading RIG from Neutral to Outperform. Since the Mississippi Canyon (MC) well 252 accident on April 20th, RIG has lost 37% in stock value, and has lost about US$10.6bn in market cap value. The stock now looks to be attractively priced, and it appears that most of the bad news has already been announced. . . .[Because] standard operator/contractor contracts indemnify service companies from liabilities resulting from the well. . .it appears as if RIG's liabilities will not exceed its insurance coverage of US$950m. We are upgrading RIG from Neutral to Outperform. While there still exists headline risk for the stock, we believe that most of the negative news is already in the public domain. We expect RIG management to provide some clarity in their conference call on May 28th and would own the stock ahead of it. RIG is attractively priced, trading at 5.8x 2011E EPS and 4.1x 2011E EBITDA. It is one of the cheapest stocks in our universe. The company had a contract backlog of US$28.6bn as of 13 April 2010 after adjusting for the sinking of Deepwater Horizon. At our US$85 target price, RIG would be priced at 8.6x 2011 P/E and 5.7x 2011 EBITDA. It would also be trading at a 20% discount to our base case NAV of US$106.00/share." |
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Under SEC rules, analysts are required to disclose their interest in securities that they cover. We strongly encourage you to contact them to understand any potential conflicts of interest they may have.
More Experts
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