Atwoods Oceanics (ATW) has been a favorite of Stone Fox Capital for a while. The company has recently gone on a building spree [see Atwoods Oceanics Is Drilling for New Rigs]. The company has 6 new rigs on order which is impressive considering the company only has 9 ships now.
The industry clearly has an issue with aging fleets. SDRL has some appeal as an investment though they are heavily indebted. For now we'll remain focused on the investment in ATW and sleep much better knowing the building of new rigs was a smart move as fleet ages reach extreme levels.
(Reuters) - Below are the fleet sizes and their average ages for leading operators of offshore oil and gas drilling rigs, not taking upgrades into account.
Operator Rigs built Average age (years)
Transocean (RIG.N) 139 25
Noble Corp (NE.N) 62 29
Hercules (HERO.O) 52 31
Diamond (DO.N) 46 31
Seadrill (SDRL.OL) 45 8
Rowan (RDC.N) 28 16
Atwood (ATW.N) 9 26
Total 450 24 (Compiled by Braden Reddall)