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
No comments:
Post a Comment