QUOTE AND NEWS
Motley Fool  Jul 15  Comment 
Let's see what the numbers say about Atwood Oceanics (ATW).
SeekingAlpha  Jul 7  Comment 
ByHeather Ingrassia: As we find ourselves heading into yet another action-packed earnings season, I wanted to take a closer look at the upcoming earnings for one particular company in the drilling and exploration sector and share my thoughts on...
Market Intelligence Center  Jun 24  Comment 
After Monday’s trading in Atwood Oceanics Inc. (ATW) the option-trade picking algorithms that power MarketIntelligenceCenter.com's Artificial Intelligence Center uncovered a trade that offers a 2.27% return, or 9.42% annualized (for comparison...
OilVoice  Jun 20  Comment 
Atwood Oceanics Inc. NYSE ATW announce that one of its subsidiaries has been awarded a drilling services contract by CNOOC Africa Limited for the semisubmersible rig Atwood Hunter. The contract wi
StreetInsider.com  Jun 19  Comment 
Visit StreetInsider.com at http://www.streetinsider.com/Corporate+News/Atwood+Oceanics+%28ATW%29+Receives+Contract+for+Semisubmersible+Rig+from+CNOOC+Africa/9597331.html for the full story.
Benzinga  Jun 12  Comment 
Analysts at Goldman Sachs initiated coverage on shares of Cabela's (NYSE: CAB) with a “neutral” rating. The target price for Cabela's is set to $69. Cabela's shares closed at $62.24 yesterday. JP Morgan initiated coverage on shares of Allete...
Market Intelligence Center  Jun 5  Comment 
MarketIntelligenceCenter.com's option-trade picking algorithms have identified an attractive covered-call trade on Atwood Oceanics Inc. (ATW). Look at the Dec. '14 $45.00 covered call for a net debit in the $43.65 area. This trade has a duration...
Market Intelligence Center  May 23  Comment 
The patented algorithms that power MarketIntelligenceCenter.com's Artificial Intelligence Center found a trading opportunity with Atwood Oceanics Inc. (ATW) that should provide a 2.81% return in just 120 days. Sell one Sep. '14 call at the $45.00...
Market Intelligence Center  May 16  Comment 
MarketIntelligenceCenter.com's patented trade-picking algorithms have identified an attractive covered-call trade on Atwood Oceanics Inc. (ATW). Look at the Sep. '14 $45.00 covered call for a net debit in the $43.63 area. This trade has a...
SeekingAlpha  May 15  Comment 
By Fun Trading: Atwood Oceanics, Inc. (ATW) "UDW Atwood Archer" from Atwood Oceanics website. The company was founded 45 years ago and provides offshore oil contract drilling services and has expanded worldwide. Atwood Oceanics Inc. Is based...




 
TOP CONTRIBUTORS

Atwood Oceanics, Inc. (NYSE: ATW) is an international offshore drilling company with eight rigs (4 semi-submersible, 2 jack-up, 1 semi-submersible tender assist, 1 submersible).[1]

Company Overview

Atwood Oceanics is awarded contracts, through a competitive bidding process, in which it rents its offshore drilling rigs out to oil & gas drilling & exploration companies for a set rate. To increase operating margins, ATW must maximize the number of days its rigs are on contract (utilization rate).[2]

Compared to competitors such as Noble (NE) and Transocean (RIG) who have over 50 and 135 rigs, respectively, ATW has a small fleet. [3][4] Therefore, Atwood still has significantly fewer rigs under contract compared to its competitors, despite its near perfect utilization rates, keeping its overall revenue lower.

Business & Financial Metrics[5]

In 2009, ATW generated $250.7 in net income on $586.5 million in total revenues. This represents a 16.4% increase in net income and a 11.4% increase in total revenues from 2008, when the company earned $328.2 million on revenue of $526.6 million.

Business by Rigs

Atwood operates four types of rigs:

  • Semi-Submersible (SS) (74% of 2009 revenue)[6] rigs are designed for the deepest waters and are more expensive to operate than jack-ups.
  • Semi-Submersible Tender Assist (SSTA) (5% of 2009 revenue)[7] rigs are the same as semi-submersibles except the equipment is installed on permanent offshore platforms.
  • Jack-up (JU) rigs (18% of 2009 revenue)[7] are lowered into the water and then jacked up to the surface. They cannot operate in waters as deep as semi-submersibles can since they are limited by the legs of the rig.
  • Submersible (S) (3% of 2009 revenue)[7] rigs rest on the sea floor and are meant to operate in shallow water depths from 9 to 70 feet.[8]

Trends and Forces

Deepwater Oil Exploration is the Hot New Technology for Oilfield Services Companies but Atwood isn't Yet in the Game

Extreme oil prices also make deep-water drilling economically feasible for the major oil companies.[9] Atwood cannot fully capitalize on this as its fleet's biggest semi-submersibles (Atwood Eagle, Hunter, Falcon, Southern Cross) only drill to 5,000 feet while strong competitors such as Transocean (RIG) and Noble (NE) can tap into deep basins with 12,000 foot rigs. [10] However, Atwood does have orders in place with Jurong Shipyard for two semi-submersibles with at least one being able to reach 10,000 feet. [11]

Competition

Atwood competes with several other offshore drilling companies for contracts. Due to its small fleet, ATW is dwarfed by its competitors in rig quantity and revenue. Atwood's main competitors include:

  • Transocean (RIG) is the largest company in the offshore drilling market with 139 rigs (jackups, semi-submersibles, drillships). [4]
  • Pride International (PDE) maintains 64 offshore rigs internationally (2 deepwater drillships, 12 semi-submersibles, 28 jackups, 10 platform rigs, 5 managed deepwater drilling rigs, 7 Eastern Hemisphere-based land drilling rigs. [13]
  • Noble (NE) operates 62 rigs worldwide (13 semi-submersibles, 3 drillships, 43 jackups, 3 submersibles). [14]

References

  1. ATW 10-K 2007, "Business", Page 3
  2. ATW 10-K 2007, "Drilling Contracts", Page 4
  3. NBL 10-K 2007, "Drilling Fleet Table", Page 15
  4. 4.0 4.1 RIG 10-K 2007, "Drilling Fleet", Page 6
  5. ATW 2009 10-K Ex. 13 pg. 1  
  6. ATW 2009 10-K Ex. 13 pg. 5  
  7. 7.0 7.1 7.2 ATW 2009 10-K Ex. 13 pg. 6  
  8. BloggingStocks: Exploding Demand in Offshore Drilling
  9. The Motley Fool: How Deep is Atwood Oceanics?
  10. Reuters: Pride International Inc.
  11. NE 10-K 2007, "Business", Page 1
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