Transocean Partners LLC - a master limited partnership (MLP)
formed by offshore drilling giant,
) - has filed for an initial public offering (IPO). The MLP intends
to list its units on the NYSE under the ticker RIGP. Transocean
Partners expects to raise a maximum of $350.0 million from the IPO.
Investors responded positively to the news, with shares of
Transocean Ltd gaining 1.37% to close at $46.00 on Jun 23.
Transocean Partners presently has a 51% ownership in three
ultra-deepwater rigs. One of the two rigs is now under a long-term
deal with oil giant,
) to operate in the U.S. Gulf of Mexico (GoM). The other two
drillships are working for
) - one of the largest integrated energy companies in the world -
in the (GoM).
Switzerland-based Transocean Ltd is the world's largest offshore
drilling contractors and the leading providers of drilling
management services. In particular, the company is the industry
leader in deep sea drilling. Transocean Ltd's state-of-the-art
mobile offshore drilling fleet worldwide can function in the most
challenging environments, such as the North Sea.
However, the introduction of new and more regulations due to the
oil spill has made deepwater drilling activity prohibitively
expensive for Transocean Ltd, making many of its projects marginal.
As a result, Transocean Ltd currently has a Zacks Rank #3 (Hold),
implying that it is expected to perform in line with the broader
U.S. market in the next one to three months.
Meanwhile, one can look at better-ranked players in the oil and gas
drilling sector including
Pioneer Energy Services Corp.
). The stock sports a Zacks Rank #1 (Strong Buy).
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