Could Transocean (RIG) Come Out On Top After the Oil Spill?

After getting slammed 45 percent since the Gulf oil spill, Transocean Ltd. (NYSE: RIG) is seeing some interest today on hopes that after all is said and done the company may actually have a bigger opportunity to make money.

Shares of Transocean are up 4.7 percent to $50.62.

There is talk now that relief wells could become mandatory for many drilling projects in the U.S., especially offshore ones. If relief wells were required, it would benefit Transocean since they are the world's largest offshore driller.

Transocean owns or has partial ownership interests in 136 mobile offshore drilling units. Many of these units are contracted out on a dayrate basis to drill oil and gas wells. With the moratorium on deepwater drilling and new permits in the Gulf of Mexico, the company may see a hit as dayrates may be negotiated lower for idle rigs. Transocean currently has 13 units in the Gulf.

In addition to possible losses on the drilling freeze, Transocean could have some liability related to the Gulf spill.

Transocean said it has insurance coverage applicable to the Deepwater Horizon rig, including insurance for the fair market value of the rig at the time of the accident.

Market Moving News and Intelligence – Free Sign-Up
http://www.streetinsider.com/premium_content.php

You May Also Be Interested In

• Transocean (RIG) Tops Q2 EPS by 2c ; Offers Guidance
• This payments stock is significantly undervalued by the market: Bernstein
• Major hotel operator seen delivering solid first-half growth as U.S. demand strengthens