eastunder
3 weeks ago
On June 20, 2025, Transocean Ltd. (the “Company”) announced that, as part of its ongoing efforts to optimize its capital structure, Transocean International Limited, a wholly owned subsidiary of the Company (“TIL”), entered into separate, individually negotiated agreements on June 19, 2025 (the “2025 EB Agreements”) with certain holders (the “2025 EB Holders”) of its 4.0% Senior Guaranteed Exchangeable Bonds due 2025 (the “2025 Exchangeable Bonds”).
https://archive.fast-edgar.com/20250620/A52ZK22CZ222H2Z2222J22EOSTCMZO226Q72/
Pursuant to the 2025 EB Agreements, (i) the 2025 EB Holders agreed to exchange approximately $157 million aggregate principal amount of 2025 Exchangeable Bonds for shares, $0.10 par value, of the Company (“Shares”), with the amount of Shares (the “Consideration Shares”) to be determined based in part on the daily volume-weighted average price per Share over a fifteen trading day period beginning on, and including, June 20, 2025, which may be extended in certain circumstances, and (ii) TIL agreed to deliver, in consideration therefor, the Consideration Shares to such 2025 EB Holders and to pay the 2025 EB Holders in cash for any accrued and unpaid interest on the 2025 Exchangeable Bonds (the foregoing transactions, the “Transactions”). Although the Consideration Shares to be issued will ultimately be determined based on the calculation during the trading day period as discussed herein, for illustrative purposes only, if the volume-weighted average price per share of the Shares every trading day during such period was equal to $3.09 (the closing price per share of the Shares on June 18, 2025), then the aggregate number of Shares due at settlement pursuant to the 2025 EB Agreements would be approximately 53 million. The foregoing Transactions are subject to a limit price of $2.63 per share (the “Limit Price”), whereby the daily Transactions will cease in the event that, and for so long as, the trading price of the Shares declines below the Limit Price. In certain circumstances, the aggregate principal amount of 2025 Exchangeable Bonds exchanged as part of the Transactions may be less than the approximate $157 million agreed amount.
The issuances of Consideration Shares are exempt pursuant to Section 4(a)(2) of the Securities Act of 1933, as amended, which exempts transactions by an issuer not involving a public offering. The Transactions begin on the date hereof and are expected to all close by the end of the expiration of the trading day period (which may be adjusted as discussed herein), in each case subject to customary closing conditions.
eastunder
2 months ago
Transocean Ltd. (NYSE:RIG) Q1 2025 Earnings Call Transcript
https://www.insidermonkey.com/blog/transocean-ltd-nyserig-q1-2025-earnings-call-transcript-1520888/
(For me - when listening to the cc I'm more interested in the questions and the answers. This is A part that stood out to me. It's important)
Operator: We’ll take our final question from Noel Parks with Tuohy Brothers. Please go ahead.
Noel Parks: Hi. Good morning. I will kind of come back to one of my recurring questions, which is, in an upside case, I’ve been interested in what you think producers. What producer behavior might be like as they face needing to crowd through the door? There — these recent contracts we heard that are encouraging sound like, some of them are recognizing that they’re advantages to locking in a little sooner rather than later. So, with those now under the industry’s belt, what do you think things look like if, 2026 looks like it’s going to be particularly strong.
Roddie Mackenzie: Hi, I’ll take that one. This is Roddie again. Yes. So, look, as we think about the — we talked about the macro uncertainty. Well, of course, a couple of recent announcements on tariffs and OPEC numbers have caused that short term volatility, but something that’s been kind of overlooked is over the past three months, the majors, particularly the European majors, have basically come out and said we are refocusing on oil and gas. We are going to play to our strengths. We are going to invest in upstream. And specifically, you know, BP, Shell and Equinor, talking about spending more money on exploration. And when you look at what’s projected in terms of CapEx spend, we’re expected to see around a 40% increase for deepwater between 2025 and 2029.
So, — that’s because, as Keelan had mentioned, the investment economics, the returns expected for deepwater developments are superior to most other forms of investment. So, we think that that will play heavily into what’s going to happen in the offshore market today. So, in terms of active utilization, we definitely see — or are aligned with the projections that show we could be adding 20 rigs between now and the next three or four years. We also believe that we will see more exploration that will trigger yet further developments. And this is all driven by the overarching theme that, you know, the IEA, for example, just republished their projections that show oil and gas will increase in consumption to 2050. So, previously, all of those curves came down at some point in 2030s or 2040s.
But the most recent projections show that even in the weakest economic case, oil and gas consumption will continue through the middle of the century. So, for us, we think that’s very solid fundamentals that can only support positive activity and positive day rates going forward.
Noel Parks: Great. Thanks. And so then would you say it would be fair to say that, you know, given the last couple of years have shown these signs based on just very limited, industry supply of high spec rigs, have shown these sides of very positive demand fundamentals. And so is it safe to say at this point that — at this point, new contracts, even in low, mid 400, at that level, sort of is the, the proof point that this is essentially a strong cycle fundamentally as opposed to whatever fears there may have been out there that, oh my gosh, to get, get these rigs signed, we’re going to have to see a big rollback in, in pricing? Would you say that that fear is pretty much off the table now or should be?
Roddie Mackenzie: Yes. I do. I mean, I think there was maybe a moment in time there where there was a tremendous amount of pressure. But I think many of the drillers have, are looking past 2025 looking to 2026, and 2027. So, from our point of view, that’s pretty solid. You may be seeing a floor for those long-term contracts. Again, as we said before, near-term stuff, short-term stuff, yes, I think, there’s many things possible there, but the fundamentals are just too good on a long-term basis. So, certainly would not make sense to lock in premium assets at below market rates.
Jeremy Thigpen: Yes. And when we look at the operators and their decision processes and what they’re looking to do with their portfolios, as Roddie indicated, you know, clearly, you know we believe it’s up and to the right. And when it comes to the assets that are available to work, there are there are barriers to how many assets can actually go to work and the timing of those. And so we think, it’s a very constructive space that we’re heading into. And so each driller, takes a portfolio approach and focuses on their own particular strategies. And in our case, we believe that perhaps now is not necessarily the right time to lock up, for those future years. But, we’ll continue to believe strongly in the future.
Noel Parks: Great. Thanks for the reminder about the timing barriers to getting rigged rig ads done. I think it’s also really important dynamic. Appreciate it. Thanks for the update.
eastunder
3 months ago
Transocean Ltd. Announces Time Change for First Quarter 2025 Earnings Call
April 17, 2025 16:32 ET | Source: Transocean Ltd.
STEINHAUSEN, Switzerland, April 17, 2025 (GLOBE NEWSWIRE) -- Transocean Ltd. (NYSE: RIG) announced today that, due to a scheduling conflict, it is changing the time of its first quarter 2025 earnings call. It will now conduct the teleconference starting at 10 a.m. EDT, 4 p.m. CEST, on Tuesday, April 29, 2025.
As previously announced, the company’s first quarter 2025 earnings will be reported on Monday, April 28, with the teleconference scheduled on Tuesday, April 29. Individuals who wish to participate in the call should dial +1 785-424-1619 approximately 15 minutes prior to the scheduled 10 a.m. EDT start time and refer to conference code 119877.
The teleconference will be simulcast in a listen-only mode at: www.deepwater.com, by selecting Investors, News, and Webcasts. A replay of the conference call will be available after 1 p.m. EDT, 7 p.m. CEST, on April 29. The replay, which will be archived for approximately 30 days, can be accessed at +1 402-220-7202, passcode 119877. The replay also will be available on the company's website.
eastunder
3 months ago
Is Transocean Ltd. (RIG) the Best Oil and Gas Penny Stock to Invest in Now?
By Faheem Tahir | April 26, 2025, 10:18 AM
https://finviz.com/news/34930/is-transocean-ltd-rig-the-best-oil-and-gas-penny-stock-to-invest-in-now
We recently published a list of 12 Best Oil and Gas Penny Stocks to Invest in Now. In this article, we are going to take a look at where Transocean Ltd. (NYSE:RIG) stands against other best oil and gas penny stocks to invest in now.
The oil and gas sector faces a pivotal moment in 2025 as it deals with complex dynamics from global tensions, evolving policy directions, and rising innovation. The stable pricing in 2024, after many decades, now faces hurdles due to geopolitical stresses, energy transition demands, and economic shifts. Companies are keeping tight capital control while boosting tech productivity, as analysts predict oil will stay between $70 and $80 per barrel. However, geopolitical instability and unpredictability could push prices higher.
Despite these obstacles, operations have advanced as the sector’s capital spending has increased 50% from 2020. Meanwhile, returns are on the upswing as businesses focus on high-performing assets and refine their portfolios. Many companies are betting on digital and green tech—carbon capture, hydrogen, and data-driven exploration—as part of a wider clean energy push. Global oil trade issues have shifted focus to natural gas as a second key revenue source, thus, gas prices have jumped lately. According to Yahoo Finance data, LNG futures are up nearly 40% in six months and 91.65% year-over-year at Henry Hub, thanks to low stockpiles, winter demand, and rising LNG exports.
Although market instability persists, as recent OPEC+ supply boost and US-China trade tensions have pushed down crude prices. As of April 2025, West Texas Intermediate (WTI) crude sits near a three-year low of $61.5 per barrel. The US Energy Information Administration (EIA) sees an average of $63.88/bbl this year, further dropping to $57.48 in 2026. This decline, plus tariff hurdles and export problems, might squeeze US oil output since profit thresholds sit between $61-$70/bbl. This shows how even major forecasters are scaling back amid trade fights and project holdups.
Now, the trend has shifted to natural gas as the growth driver for the oil and gas industry. Europe remains central to global LNG trade, taking 55% of US LNG exports in 2024, per LSEG data. As seen last December, 69% of US LNG shipments (5.84 MT) went to Europe, up from November’s 5.09 MT, driven by winter needs and limited Russian supply. As trade tensions add complications, China’s 15% tariff on US LNG threatens new deals despite existing contracts.
The outlook is mixed but hopeful as oil demand rebounds post-pandemic and a global boost in energy diversification. Although solar energy helps reduce fossil fuel dependence, it won’t replace it entirely, which shows the significance of a harmonized energy mix. In the same way, the main alternatives—solar, wind, and nuclear—each have scaling or consistency limits. Oil and gas, especially natural gas, remain vital to global growth and energy security, creating openings for agile, cost-effective penny stocks.
While major companies grab headlines with billion-dollar projects, penny stocks—small-cap oil and gas companies trading under $5—attract interest for their high-growth potential.
Our Methodology
We first sifted through ETFs, online rankings, and internet lists to compile a list of the best oil and gas stocks under $5. We then selected the 12 stocks that were the most popular among elite hedge funds and that analysts were bullish on. The stocks are ranked in ascending order of the number of hedge funds that have stakes in them, as of Q4 2024. For tied stocks, we ranked them by the value of their hedge fund stakes. The hedge fund data was sourced from Insider Monkey’s database, which tracks the moves of over 1000 elite money managers.
Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 373.4% since May 2014, beating its benchmark by 218 percentage points (see more details here).
Is Transocean Ltd. (RIG) the Best Oil and Gas Penny Stock to Invest in Now?
Transocean Ltd. (NYSE:RIG)
Number of Hedge Fund Holders: 38
Share Price as of April 16: $2.16
Transocean Ltd. (NYSE:RIG) operates as a top offshore drilling contractor with one of the world’s biggest mobile drilling unit fleets. The company owns or has stakes in 34 rigs—26 ultra-deepwater floaters and 8 harsh environment ones—serving energy companies from government-backed giants to small independents. Its rigs tackle deepwater and ultra-deepwater projects while offering drilling services with cutting-edge safety and automation tech. Transocean is among the few penny stocks tied to offshore oil exploration, a sector gaining traction amid steady energy needs.
In Q4 ending December 31, 2024, Transocean Ltd. (NYSE:RIG) posted $952 million in adjusted drilling revenue and $323 million in adjusted EBITDA—a 34% margin. The full 2024 year brought in $3.5 billion in revenue and $1.15 billion in adjusted EBITDA. The company generated $206 million in operating cash in Q4 and finished the year with $1.5 billion in liquidity, keeping a solid balance sheet despite market ups and downs.
In addition, Transocean Ltd. (NYSE:RIG) keeps landing valuable contracts, including day rates above $500,000 for seventh-gen rigs and over $600,000 for eighth-gen 20k-capable rigs. The company’s fleet use stays robust—above 96% for 2025 and 93% heading into 2026—backed by extended contracts and new deals in India and Australia. Transocean hit its best safety record ever and installed the industry’s first two 20k subsea completions, showing its tech leadership.
Despite expected short-term offshore market weakness in 2025 because of a temporary rig surplus in Africa and currency headwinds in Brazil, the company stands in a good spot. Moreover, Transocean Ltd. (NYSE:RIG) is working to unlock its $3.1 billion backlog while cutting costs and reducing debt. Many deepwater projects are set to launch in 2026 and beyond, hinting at a broader industry comeback.
With global deepwater spending projected to double by 2027 and traditional oil production becoming a priority again for major players, Transocean’s focus on deepwater trends sets it up for long-term growth in the offshore market.
eastunder
3 months ago
Transocean (RIG) Awaits Q1 Earnings Amid Analyst Expectations
GuruFocus News
15 hours ago
https://www.gurufocus.com/news/2806833/transocean-rig-awaits-q1-earnings-amid-analyst-expectations
Transocean (RIG, Financial) is set to release its Q1 earnings on April 28, with a focus on EPS and revenue growth.
Analysts forecast a significant revenue increase despite recent EPS estimation challenges.
Current evaluations suggest notable upside potential based on price targets and GF Value estimates.
Transocean Ltd (RIG) is preparing to announce its first-quarter earnings on April 28, post-market close. Analyst projections estimate an earnings per share (EPS) of -$0.09 coupled with an anticipated revenue of $885.42 million, indicating a promising 16% year-over-year growth. While the EPS predictions have faced five downward revisions recently, revenue estimates have been positively adjusted three times, reflecting optimism in this area.
Wall Street Analysts Forecast
In terms of stock price expectations, 14 analysts have offered one-year price targets for Transocean Ltd (RIG, Financial), averaging at $4.40. This comes with a high estimate of $6.00 and a low estimate of $3.50. This average target suggests a substantial upside of 88.99% from the current share price of $2.33. Investors looking for more detailed estimate data can explore the Transocean Ltd (RIG) Forecast page.
The consensus recommendation from 16 brokerage firms rates Transocean Ltd (RIG, Financial) with an average rating of 2.6, which translates to a "Hold" status. This rating scale spans from 1 (Strong Buy) to 5 (Sell), providing investors with a clear indicator of market sentiment.
According to GuruFocus calculations, the projected GF Value for Transocean Ltd (RIG, Financial) in a year is pegged at $5.79. This projection indicates an impressive upside potential of 148.5% from the current price point of $2.33. The GF Value represents GuruFocus's assessment of the stock's fair trading value, derived from historical trading multiples, the company's past growth trajectory, and future business performance forecasts. For a deeper insight into Transocean's financial standing, visit the Transocean Ltd (RIG) Summary page.
eastunder
4 months ago
Transocean's Rig Sets Sail for 10-Well Drilling Mission at Neptun Deep
Wed, 12 Mar 2025
https://www.msn.com/en-us/money/markets/transocean-s-rig-sets-sail-for-10-well-drilling-mission-at-neptun-deep/ar-AA1AGfo1
Transocean Ltd.’s RIG semi-submersible drilling rig, Transocean Barents, is making its way to the Neptun Deep project for a 10-well drilling mission, marking a significant phase in Romania’s offshore energy development.
The rig’s 540-day contract, awarded in December 2023, positions Transocean at the forefront of this high-profile drilling campaign. The rig arrived in Constanta in late 2024 to prepare for its drilling assignment and is now sailing toward its drill site, where operations will commence in April 2025.
An Insight Into the Transocean Barents Rig
Transocean Barents is designed to operate in tough environments and at a water depth of up to 3000 meters. It is designed for global operation in ultra-deep waters and started drilling for oil and gas on the Norwegian continental shelf in 2009.
For the first time since it became operational in 2009, Transocean's rig had to lower its ram guides to get past the bridges of the Bosphorous Strait and into the Black Sea.
Employees from 20 different companies were providing services on the rig. Once the drilling starts, the rig will host up to 140 staff, who will rotate every four weeks round the clock for up to 18 months.
Overview of the Neptun Deep Project
The Neptun Deep project’s important in Romania’s offshore energy development and is considered to be the country's biggest energy project since it completed its second nuclear reactor almost two decades ago. The project is being developed by OMV Petrom (operator of the project) and Romgaz, with each company holding a 50% participating interest. It is set to unlock substantial natural gas reserves, with an estimated total production of 100 billion cubic meters.
With the first gas anticipated to be achieved in 2027, the Neptun Deep project is progressing well according to its plan, with 90% of the budget already committed.
This project is anticipated to have a carbon footprint of around 2.2 kg CO2/barrels of oil equivalent (boe), seen as being significantly below the industry average of 16.7 kg CO2/boe.
Mother Lode
8 months ago
Starting to look promising:
"The firm period now runs through August of 2026 and with the remaining options, the rig is expected to remain in Australia through at least October of 2026. As I mentioned, the Transocean fleet is now solidly booked for the vast majority of 2025 and well into 2026. In fact, based on today's backlog, our active fleet utilization for 2025 exceeds 97% and remains at roughly 86% through the first half of 2026. Through our 23 fixtures awarded so far this year, we have steadily eliminated utilization concerns through next year, successfully avoiding the so-called white space issues that most of our competitors have discussed over the past several months."
"The result of this is that in the medium term, we have the only marketable assets in this sought-after class. As we discussed in previous calls, hook-load is important to customers as it characterizes the rig's capability to run longer and heavier casing strings. This capability permits our customers to optimize their well designs, thereby reducing the number of days required to drill their wells, and if reservoir performance dynamics allow, facilitate greater well productivity due to the preservation of the wellbore diameter. As evidenced by our $1.3 billion in recent contract awards, our now $9.3 billion in total backlog, which, by the way represents a 7.5% sequential increase from our July 2024 Fleet Status Report and our 2025 contract coverage relative to our peer group, our portfolio of high specification, ultra-deepwater and harsh environment rigs, all else being equal, seems to be clearly preferred by our customers, leading to higher full cycle utilization and enabling us to fix industry leading day rates."
"And as you might expect, we are actively engaged in direct negotiations with customers for work that would commence an immediate continuation of their current contracts. In Africa and the Mediterranean, we currently expect between 10 and 15 programs, an average duration of about 12 months to commence in 2026. This demand is driven by development programs in Nigeria, Angola, Ivory Coast, and Ghana. Each of these opportunities also have associated long-term options.
Moving into 2027, we believe more units may be required in the region as programs in Mozambique and Namibia are expected to commence."
Mother Lode
8 months ago
"Transocean Ltd (RIG) Q3 2024 Earnings Call Highlights: Navigating Challenges with Strong ..."
https://finance.yahoo.com/news/transocean-ltd-rig-q3-2024-070902433.html
Q & A Highlights
Q: What are your expectations on the trajectory of day rates for next year, considering the utilization headwinds faced by your peers?
A: Roddie Mackenzie, EVP & Chief Commercial Officer, explained that Transocean's average fixture for their 1,400-tonne class and above in 2024 has been around 520, firmly in the 500s. He noted that while there might be soft spots, many programs run longer than expected, and direct negotiations often occur. Jeremy Thigpen, CEO, added that Transocean's 1,250-tonne rigs are on longer-term contracts, and the 1,400-tonne and 1,700-tonne rigs have consistently secured contracts at premium day rates, even during downturns.
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