Biden Set To Ban Future Offshore Oil Drilling: 4 Stocks, 2 ETFs To Watch
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Jan 06 2025
0mins
Source: Benzinga
Biden's Offshore Drilling Ban: President Joe Biden plans to ban offshore drilling along most of the U.S. coast, protecting over 625 million acres of ocean from future oil and gas drilling, citing environmental concerns and community feedback.
Impact on Oil Industry: The ban could significantly affect companies in the oil and gas sector, including those providing offshore drilling services, as well as potentially limiting future fossil fuel production efforts by the incoming Trump administration.
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Analyst Views on RIG
Wall Street analysts forecast RIG stock price to fall
7 Analyst Rating
2 Buy
3 Hold
2 Sell
Hold
Current: 6.000
Low
3.00
Averages
4.25
High
5.00
Current: 6.000
Low
3.00
Averages
4.25
High
5.00
About RIG
Transocean Ltd. is an international provider of offshore contract drilling services for oil and gas wells. The Company's primary business is to contract its drilling rigs, related equipment and work crews on a dayrate basis to drill oil and gas wells. As of February 9, 2017, it owned or had partial ownership interests in and operated 56 mobile offshore drilling units. As of February 9, 2017, its fleet consisted of 30 floaters, seven harsh environment floaters, three deepwater floaters, six midwater floaters and 10 high-specification jackups. As February 9, 2017, it also had four ultra-deepwater drillships and five high-specification jackups under construction or under contract to be constructed. Its contract drilling services operations are spread across oil and gas exploration and development areas throughout the world. The Company's drilling fleet can be characterized as floaters, including drillships and semisubmersibles, and jackups.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
Transocean Secures New Contracts in Norway
- Total Contract Value of $184 Million: Transocean has secured contracts for two harsh environment semisubmersibles in Norway, representing approximately $184 million in firm contract backlog, indicating strong performance in a high-demand market.
- Encourage Contract Extension: The Transocean Encourage has been awarded a seven-well contract extension, with an estimated 365 days of work expected to commence in Q1 2027, contributing approximately $152 million to backlog, further solidifying its market position.
- Incremental Work for Enabler: The Transocean Enabler has exercised two one-well options, expected to add 70 days of work and contribute approximately $32 million to backlog, ensuring the rig's operations through December 2027 and enhancing revenue stability.
- Industry Leadership: Transocean specializes in technically demanding offshore drilling services, operating a fleet of 27 mobile offshore drilling units, which further cements its leadership in ultra-deepwater and harsh environment drilling, showcasing strong market competitiveness.
See More
Transocean's Valaris Acquisition Boosts Stock Performance
- Acquisition Boosts Stock: Transocean's stock rose 0.50% to $6.03 on Thursday, driven by its $5.8 billion acquisition of Valaris and new contract awards, which significantly enhance the company's backlog and long-term earnings potential.
- Surge in Trading Volume: The company saw a trading volume of 102.9 million shares, approximately 159% above the three-month average of 39.8 million shares, indicating strong market interest in its acquisition and contract developments.
- Market Consolidation Impact: This acquisition will create one of the world's largest deepwater drilling fleets for Transocean, likely enhancing pricing power and revenue visibility in an increasingly tightening offshore market.
- Divergent Analyst Views: While BTIG raised its price target reflecting scale benefits and contract momentum, Fearnley Fonds downgraded the stock due to valuation and balance sheet risks, prompting investors to monitor whether the merger can effectively convert increased scale and backlog into sustained cash flow.
See More
Transocean's Valaris Acquisition Boosts Stock Performance
- Acquisition Boost: Transocean's $5.8 billion acquisition of Valaris led to a 0.50% increase in stock price to $6.03, reflecting positive investor sentiment regarding future earnings potential stemming from this strategic move.
- Surge in Trading Volume: The company's trading volume reached 102.9 million shares, which is 159% above its three-month average, indicating heightened market interest in its acquisition and new contracts, potentially impacting future liquidity and investor confidence.
- Increased Backlog: The signing of new contracts increased Transocean's backlog by approximately $184 million, enhancing the company's pricing power and revenue visibility in a tightening offshore market, which may support future cash flow.
- Divergent Analyst Views: While BTIG raised its price target citing scale benefits and contract momentum, Fearnley Fonds downgraded the stock due to valuation and balance-sheet risks, highlighting market concerns about post-merger integration and sustainable cash flow generation.
See More
Offshore Giants: Transocean Acquires Valaris for $5.8 Billion
Merger Announcement: Transocean Ltd. has solidified its position as a leader in offshore drilling by agreeing to acquire Valaris Limited in a deal valued at approximately $5.8 billion, which is expected to reshape the energy services sector.
Market Reaction: The announcement led to a positive market response, with Valaris shares rising about 34%, while Transocean shares also climbed, reflecting strong investor sentiment and confidence in the merger.
Strategic Benefits: The merger is anticipated to enhance Transocean's operational capabilities, reduce debt concentration, and create a more stable, blue-chip energy service provider, positioning the combined entity to dominate the offshore drilling market.
Future Outlook: The deal is expected to close in the second half of 2026, with existing Transocean shareholders projected to own approximately 53% of the combined company, which will be well-positioned to capitalize on future demand in the offshore energy sector.
See More
Investor Rights Law Firm Investigates Multiple Companies for Potential Violations
- Legal Investigation: Halper Sadeh LLC is investigating Silicon Laboratories Inc. (NASDAQ: SLAB) regarding its sale to Texas Instruments for $231.00 per share, which may involve breaches of shareholder rights.
- Merger Impact Analysis: Devon Energy Corporation (NYSE: DVN) is merging with Coterra Energy Inc., resulting in Devon shareholders owning approximately 54% of the combined entity, potentially affecting their decision-making power and interests.
- Shareholder Rights Protection: The merger between Columbia Financial, Inc. (NASDAQ: CLBK) and Northfield Bancorp, Inc. is also under scrutiny, with Halper Sadeh LLC encouraging shareholders to understand their rights and options to safeguard their interests.
- Legal Fee Arrangement: Halper Sadeh LLC offers legal services on a contingency fee basis, meaning shareholders do not incur upfront legal costs when addressing these matters, aiming to alleviate financial burdens while protecting their rights.
See More
Amazon Reports Mixed Q4 Results Amid Market Activity
- Amazon Earnings Highlights: Amazon reported fourth-quarter net sales of $213.39 billion on February 5, reflecting a 14% year-over-year increase, surpassing the market expectation of $211.30 billion, indicating sustained growth potential in the e-commerce sector.
- Mixed Profit Performance: Despite exceeding sales expectations, Amazon's earnings per share came in at $1.95, falling short of the analyst consensus of $1.97, which may impact investor confidence moving forward.
- Market Reaction: Following the earnings report, Amazon's stock fell by 0.8% to close at $208.72, reflecting market concerns regarding its profitability despite strong sales growth.
- Other Trading Dynamics: Horizon Kinetics Inflation Beneficiaries ETF rose by 2.2%, Transocean shares increased by 5.9% to $5.71, and Interactive Brokers shares gained 5.1% to $78.42, indicating positive sentiment towards these companies.
See More
Transocean Secures New Contracts in Norway
- Total Contract Value of $184 Million: Transocean has secured contracts for two harsh environment semisubmersibles in Norway, representing approximately $184 million in firm contract backlog, indicating strong performance in a high-demand market.
- Encourage Contract Extension: The Transocean Encourage has been awarded a seven-well contract extension, with an estimated 365 days of work expected to commence in Q1 2027, contributing approximately $152 million to backlog, further solidifying its market position.
- Incremental Work for Enabler: The Transocean Enabler has exercised two one-well options, expected to add 70 days of work and contribute approximately $32 million to backlog, ensuring the rig's operations through December 2027 and enhancing revenue stability.
- Industry Leadership: Transocean specializes in technically demanding offshore drilling services, operating a fleet of 27 mobile offshore drilling units, which further cements its leadership in ultra-deepwater and harsh environment drilling, showcasing strong market competitiveness.
See More
Transocean's Valaris Acquisition Boosts Stock Performance
- Acquisition Boosts Stock: Transocean's stock rose 0.50% to $6.03 on Thursday, driven by its $5.8 billion acquisition of Valaris and new contract awards, which significantly enhance the company's backlog and long-term earnings potential.
- Surge in Trading Volume: The company saw a trading volume of 102.9 million shares, approximately 159% above the three-month average of 39.8 million shares, indicating strong market interest in its acquisition and contract developments.
- Market Consolidation Impact: This acquisition will create one of the world's largest deepwater drilling fleets for Transocean, likely enhancing pricing power and revenue visibility in an increasingly tightening offshore market.
- Divergent Analyst Views: While BTIG raised its price target reflecting scale benefits and contract momentum, Fearnley Fonds downgraded the stock due to valuation and balance sheet risks, prompting investors to monitor whether the merger can effectively convert increased scale and backlog into sustained cash flow.
See More
Transocean's Valaris Acquisition Boosts Stock Performance
- Acquisition Boost: Transocean's $5.8 billion acquisition of Valaris led to a 0.50% increase in stock price to $6.03, reflecting positive investor sentiment regarding future earnings potential stemming from this strategic move.
- Surge in Trading Volume: The company's trading volume reached 102.9 million shares, which is 159% above its three-month average, indicating heightened market interest in its acquisition and new contracts, potentially impacting future liquidity and investor confidence.
- Increased Backlog: The signing of new contracts increased Transocean's backlog by approximately $184 million, enhancing the company's pricing power and revenue visibility in a tightening offshore market, which may support future cash flow.
- Divergent Analyst Views: While BTIG raised its price target citing scale benefits and contract momentum, Fearnley Fonds downgraded the stock due to valuation and balance-sheet risks, highlighting market concerns about post-merger integration and sustainable cash flow generation.
See More
Offshore Giants: Transocean Acquires Valaris for $5.8 Billion
Merger Announcement: Transocean Ltd. has solidified its position as a leader in offshore drilling by agreeing to acquire Valaris Limited in a deal valued at approximately $5.8 billion, which is expected to reshape the energy services sector.
Market Reaction: The announcement led to a positive market response, with Valaris shares rising about 34%, while Transocean shares also climbed, reflecting strong investor sentiment and confidence in the merger.
Strategic Benefits: The merger is anticipated to enhance Transocean's operational capabilities, reduce debt concentration, and create a more stable, blue-chip energy service provider, positioning the combined entity to dominate the offshore drilling market.
Future Outlook: The deal is expected to close in the second half of 2026, with existing Transocean shareholders projected to own approximately 53% of the combined company, which will be well-positioned to capitalize on future demand in the offshore energy sector.
See More
Investor Rights Law Firm Investigates Multiple Companies for Potential Violations
- Legal Investigation: Halper Sadeh LLC is investigating Silicon Laboratories Inc. (NASDAQ: SLAB) regarding its sale to Texas Instruments for $231.00 per share, which may involve breaches of shareholder rights.
- Merger Impact Analysis: Devon Energy Corporation (NYSE: DVN) is merging with Coterra Energy Inc., resulting in Devon shareholders owning approximately 54% of the combined entity, potentially affecting their decision-making power and interests.
- Shareholder Rights Protection: The merger between Columbia Financial, Inc. (NASDAQ: CLBK) and Northfield Bancorp, Inc. is also under scrutiny, with Halper Sadeh LLC encouraging shareholders to understand their rights and options to safeguard their interests.
- Legal Fee Arrangement: Halper Sadeh LLC offers legal services on a contingency fee basis, meaning shareholders do not incur upfront legal costs when addressing these matters, aiming to alleviate financial burdens while protecting their rights.
See More
Amazon Reports Mixed Q4 Results Amid Market Activity
- Amazon Earnings Highlights: Amazon reported fourth-quarter net sales of $213.39 billion on February 5, reflecting a 14% year-over-year increase, surpassing the market expectation of $211.30 billion, indicating sustained growth potential in the e-commerce sector.
- Mixed Profit Performance: Despite exceeding sales expectations, Amazon's earnings per share came in at $1.95, falling short of the analyst consensus of $1.97, which may impact investor confidence moving forward.
- Market Reaction: Following the earnings report, Amazon's stock fell by 0.8% to close at $208.72, reflecting market concerns regarding its profitability despite strong sales growth.
- Other Trading Dynamics: Horizon Kinetics Inflation Beneficiaries ETF rose by 2.2%, Transocean shares increased by 5.9% to $5.71, and Interactive Brokers shares gained 5.1% to $78.42, indicating positive sentiment towards these companies.
See More
