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Helix Energy Solutions (HLX) to Join S&P SmallCap 600 List

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Offshore energy services provider, Helix Energy Solutions Group, Inc.HLX announced that the company will make an entry into the S&P SmallCap 600 index after the market closes on Oct 1. Helix Energy Solutions, will replace Standard Pacific Corp. SPF which will join the S&P MidCap 400 index.

A company needs to fulfill certain criteria to be included in the S&P 600. Its market capitalization needs to range from $400 million to $1.8 billion. Currently, the market capitalization of Helix Energy Solutions is $539.4 million. Subject to periodical review to ensure uniformity with market conditions, the market capitalization of a prospective addition to an index is viewed in the context of its short and medium-term historical trends, vis-à-vis that of the industry.

The company needs to have sufficient liquidity and a reasonable price. The ratio of annual dollar value traded to float adjusted market capitalization should be one or greater. Moreover, the company should trade at least 250,000 shares in each of the six months leading up to the evaluation date.

The stock should be primarily listed on NYSE (including NYSE Arca and NYSE MKT), NASDAQ Global Select Market, NASDAQ Select Market or NASDAQ Capital Market. ADRs are not qualified for addition. The public float of the stock should be a minimum of 50%. The trailing four quarters' average earnings surprise should be positive, along with a mandatory earnings beat in the last reported quarter.

Houston, TX-based Helix Energy Solutions Group fulfills all the criteria and has thereby been added to the S&P SmallCap 600 GICS Oil & Gas Equipment & Services Sub-Industry index. The company offers marine contracting services, apart from operating offshore oil/gas properties and production units. The company looks to add value to the clients' energy assets by deploying vessels from its diverse portfolio of contracting fleet.

The fortunes of this offshore energy services provider have been greatly hurt by the persistently weak commodity pricing environment. This is due to the fact that Helix Energy Solutions provides deepwater oilfield services in the U.S. and the Gulf of Mexico.

The West Texas Intermediate (WTI) crude has been trading around the $44 per barrel threshold for quite some time now. This is owing to plentiful supply of the commodity especially in the face of lackluster global demand.

Helix Energy Solutions currently carries a Zacks Rank #4 (Sell). Some better-ranked stocks from the energy space are Braskem S.A. BAK and Mitcham Industries Inc. MIND . Both these stocks sport a Zacks Rank #1 (Strong Buy).

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BRASKEM SA (BAK): Free Stock Analysis Report

STANDARD PAC (SPF): Free Stock Analysis Report

HELIX EGY SOLUT (HLX): Free Stock Analysis Report

MITCHAM INDS (MIND): Free Stock Analysis Report

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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