Apr 152014
 

By Power Hedge By Power Hedge:

This year has certainly not delivered the same strong start that many investors have come to expect from the markets over the past few years. While the S&P 500 is largely flat for the year so far (despite significant volatility), one of the top stories that I have been seeing on the major business news networks over the past few weeks is how many of the major momentum names such as the high-flying technology and biotech stocks have been getting crushed. In contrast, many energy stocks (in which I am heavily invested) have barely moved. This may be because commodities prices have been relatively stable. Meanwhile, interest rates have also been on the rise although it seems that each decline in the momentum stocks forces interest rates back down. The reason why I pointed all of this out just now is because of a recent report that I just saw

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Apr 112014
 

By Power Hedge By Power Hedge:

West Ariel

Like most of Seadrill’s (SDRL) jack-up rigs, the West Ariel is a modern and technically-capable drilling rig. The unit is a 2008-built high-specification jack-up rig using the venerable Keppel FELS B-Class design. West Ariel is capable of drilling wells up to 30,000 ft. deep in up to 400 ft. of water, making it easily the equal of any of the other rigs discussed here. The West Ariel was previously contracted to Vietsovpetro at a dayrate of $170,000 performing drilling operations off of the coast of Vietnam. This contract was scheduled to end in March. The wording that Seadrill used in its official announcement seems to imply that this contract ran a little bit long but that the rig will be on its way to its new work assignment in short order if it is not already on the way.

Like the West Tucana, the

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Apr 112014
 

By Power Hedge By Power Hedge:

On Wednesday, April 2, Seadrill (SDRL) announced that it has secured new contracts for four of its jack-up rigs. These contracts will serve to provide significant visibility into the company’s revenue and cash flow going forward. The announcement also resolves some of the concerns that I have discussed in previous articles regarding the large number of expiring jack-up contracts that Seadrill has this year. I will discuss each of these contracts in turn in this article.

West Tucana

The West Tucana is a 2012-built high-specification jack-up rig using the Friede & Goldman JU2000E design. The rig is one of the more capable jack-ups in the world, being able to drill wells up to 30,000 ft. deep in up to 400 ft. of water. The rig is currently operating off of the coast of Vietnam for PVEP at a dayrate of $167,000. This contract will end in October 2014

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Apr 102014
 

By Power Hedge By Power Hedge:

On Friday, April 4, the Huffington Post ran an article which discussed how U.S. Congressional Representative from California and former Speaker of the House Nancy Pelosi stated that “America has finally replaced all the jobs that were lost under the Bush economic policies.” Mrs. Pelosi is obviously playing politics here by attempting to appeal to her own voter base. Intelligent people can debate for hours, if not longer, as to what the true causes of the recession and resulted job losses were as well as how much the policies of each party contributed to the recession or to the so-called “recovery” from it. For my part, I have no interest in such a debate. However, I do wish to examine the facts behind Mrs. Pelosi’s statement and the facts indicate that she is very, very wrong.

The Huffington Post article suggests that Mrs. Pelosi was referring to the fact

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Apr 082014
 

By Power Hedge By Power Hedge:

On March 25, 2014, offshore drilling contract Pacific Drilling (PACD) gave a presentation at the Howard Weil Energy Conference. In this presentation, the company spent a great deal of time discussing the current trends in the industry as well as how the company is positioning itself to take advantage of each of these trends. Many of the trends that Pacific Drilling noted are very similar to the industry trends that have been identified by other offshore contractors such as Seadrill (SDRL) or Ensco (ESV), which I have discussed in previous articles. However, Pacific Drilling went into significantly greater depth than some of its peers did in certain areas. This may be because of Pacific Drilling’s exclusive focus on operating in the ultra-deepwater environment.

Pacific Drilling owns and operates a fleet of eight of the most modern and technically-capable rigs in the world today.

(click to enlarge)

Source: Pacific

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