Recent Helix Energy (HLX) Divestitures, New Focus Make an Appealing Takeover Target
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Helix Energy Solutions NYSE: HLX) has been making all the right moves to position itself as a potential takeover candidate.
Bloomberg notes Friday that Helix is better-positioned following an oil-and-gas asset divestiture last month and previous move to exit a pipe-laying business. The actions helped Helix to a 31 percent gain in share price through 2012, but the company still trades 23 percent below its closest competitor, Oceaneering International (NYSE: OII).
Potential suitors might include Aker Solutions SA, Technip SA, Diamond Offshore (NYSE: DO), or private equity players.
Helix operates in the areas of deepwater construction, oil-and-gas production, and well maintenance and repair. The recent sales have helped Helix to focus more on well-intervention services, which includes undersea well maintenance, salvage, and repair. The business is a more-profitable venture overall.
Helix now sports an enterprise value-to-EBITDA of 6.64 times, versus 8.64 times at Oceaneering.
Well intervention would be appealing to many company given the ability of the process to go down to aging wells and tap them to boost production.
One analyst believes Helix would be able to get $25 per share in a bid, or 20 percent above Thursday's close at $20.86. Shares are up 1.3 percent Friday.
Bloomberg notes Friday that Helix is better-positioned following an oil-and-gas asset divestiture last month and previous move to exit a pipe-laying business. The actions helped Helix to a 31 percent gain in share price through 2012, but the company still trades 23 percent below its closest competitor, Oceaneering International (NYSE: OII).
Potential suitors might include Aker Solutions SA, Technip SA, Diamond Offshore (NYSE: DO), or private equity players.
Helix operates in the areas of deepwater construction, oil-and-gas production, and well maintenance and repair. The recent sales have helped Helix to focus more on well-intervention services, which includes undersea well maintenance, salvage, and repair. The business is a more-profitable venture overall.
Helix now sports an enterprise value-to-EBITDA of 6.64 times, versus 8.64 times at Oceaneering.
Well intervention would be appealing to many company given the ability of the process to go down to aging wells and tap them to boost production.
One analyst believes Helix would be able to get $25 per share in a bid, or 20 percent above Thursday's close at $20.86. Shares are up 1.3 percent Friday.
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