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Pacific Drilling S.A. (PACD) |
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WIKI ANALYSIS
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This company completed an initial public offering (IPO) of its stock in 2010. View articles that reference this company. Recent IPOs: Globe Specialty Metals • LogMeIn • Invesco Mortgage Capital • Medidata • Chemspec |
Pacific Drilling S.A. (NYSE:PACD) is an oil and gas offshore drilling company. Pacific Drilling focuses on providing oil and gas companies with ultra-deepwater drilling capabilities. The company owns ships, crews, and equipment necessary for extracting oil and gas from deep reserves - ranging from around 7,500 to 12,000 feet below water. The company operates across the globe since its fleet consists of mobile boats.[1]
Business Overview
Pacific Drilling did not realize any revenue until August 2011. Prior to this, the company incurred expenses from acquiring its fleet as well as well selling its services. However, the company does have a revenue backlog from contracts which it has signed and expects to receive as it continues operation.[2]
New Updates
The company's initial public offering of stock on the NYSE occurred on November 10, 2011. The company offered 6M shares each for $8.25. This was within the $8-$10 price range. The deal raised a total of $50. The lead mangers of the deal were Morgan Stanley and Deutsche Bank.[3]
Trends & Forces
Demand based on shrinking, easy to reach reserves
Because Pacific Drilling focuses on ultra-deepwater drilling, the company's service are needed for reserves which are particularly hard to access. This means that the exploration company and/or the company which owns the reserve does not have the capabilities to explore the reserve. This will become increasingly common as easy to reach reserves are depleted. However, because of these difficulties and costs, given the opportunity, such reserves are the first ones which exploration companies will stop developing. As a result, demand for oil and gas must remain high and easy reserves must continue to be depleted to maintain demand for PACD's services.[4]
- ↑ PACD F-1 2011 PROSPECTUS SUMMARY "Our Business" p.1
- ↑ PACD F-1 2011 PROSPECTUS SUMMARY "Our Contract Backlog" p.3
- ↑ Renaissance Capital - IPO Home "Pacific Drilling prices IPO at $8.25, within the range" 11 Nov 2011
- ↑ PACD F-1 2011 PROSPECTUS SUMMARY "Risk Factors" pp.13-20
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