Ocean Rig: Premium Rigs For a Premium Market
In the face of what is supposed to be a difficult offshore deepwater drilling market, Ocean Rig (NASDAQ: ORIG ) produced a very impressive quarter. The CEO downplayed any weak market conditions in the premium rig area, suggesting that upcoming contract announcements would provide a clear price point for premium units.
The results bode well for a deepwater driller loaded with new, premium rigs that has seen its stock stagnate since originally going public and trading around this same $17 level. The news is promising for Pacific Drilling (NYSE: PACD ) that has an even more premium fleet, yet has a few rigs lacking contracts for 2014. It also questions some of the concerns originally brought up by Noble Corp (NYSE: NE ).
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