Atwood Oceanics, Inc.
) has been granted full accreditation of its Competence Assurance
Program by the International Association of Drilling Contractors
(IADC). This accreditation follows a detailed audit by IADC of
Atwood's systems and processes on skills and knowledge of employees
holding key positions in offshore drilling rigs.
IADC accreditation for the program is a major accomplishment for
the company. This program is a key component of Atwood`s employee
training and development initiatives, providing greater clarity for
its employees on job requirements, while delivering improved safety
and operational performance for clients. In the final audit report,
IADC noted that no non-conformities were identified in Atwood's
Founded in 1968, Atwood Oceanics is a global offshore drilling
contractor focusing on drilling and completion of exploratory and
developmental oil and gas wells. The company is headquartered in
Houston, TX. The company currently owns 12 mobile offshore
drilling units and is constructing three ultra-deepwater
We see Atwood Oceanics' leverage to the global drilling market
rather than the domestic market as its biggest advantage over most
of its peers. The international drilling outlook has been strong
versus the muted fundamentals in the U.S. In our view, the company
presents investors with growth opportunity from any global
deepwater drilling recovery.
However, certain factors remain that are likely to keep
near-to-medium-term earnings under pressure. The termination of any
contract for tender-assist rigs is bound to affect the earnings and
cash flow of the company. Also, downtime in any of the company's
rigs currently under contract will be an additional blow to the
Atwood Oceanics currently retains a Zacks Rank #3 (Hold). Some
better-ranked stocks in the oil and gas sector include Sunoco
Logistics Partners L.P. (
), CNOOC Ltd. (
) and Western Gas Equity Partners, LP (
). All of these sport a Zacks Rank #1 (Strong Buy) and offer
above-average returns to investors.
Want the latest recommendations from Zacks Investment Research?
Today, you can download 7 Best Stocks for the Next 30 Days.
Click to get this free report
WESTERN GAS EP (WGP): Free Stock Analysis
ATWOOD OCEANICS (ATW): Free Stock Analysis
CNOOC LTD ADR (CEO): Free Stock Analysis Report
SUNOCO LOGISTIC (SXL): Free Stock Analysis
To read this article on Zacks.com click here.