Tuesday, June 3, 2014

Seeking Alpha: Oceaneering Seems A Little Underloved

This hasn't been a fun stretch for offshore energy service companies. Land-oriented service providers like Helmerich & Payne (HP) and Halliburton (HAL) have performed nicely so far this year, but the offshore companies like Oceaneering (OII), Tidewater (TDW), and Helix (HLX) have been left behind on worries that actual activity is going to underwhelm as large energy companies pay much greater attention to costs and free cash flow generation.

I think the details matter. I would be more nervous about owning shares in companies heavily leveraged to drilling activity and those dependent upon Brazil for a large share of revenue. I also have much less interest in the offshore construction and seismic spaces as a whole. But in the case of Oceaneering, I believe the Street is overlooking what should be a profitable multiyear opportunity in drilling support and vessel support.

Read more here:
Oceaneering Seems A Little Underloved

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