RIG - Transocean, Inc. (NYSE Stock)

[BadThad]

Stock below $50 again, I've added to my position.

RIO DE JANEIRO, April 11 | Wed Apr 11, 2012 2:35pm EDT

(Reuters) - A Brazilian federal judge in Rio de Janeiro denied an injunction seeking to bar U.S. oil company Chevron Corp and drill-rig operator Transocean Ltd from operating in Brazil after offshore oil leaks in November and March, the Second Regional Federal Court said in a statement on Wednesday.

HOUSTON—A dispute over the authority of U.S. accident investigators heads to federal court here Wednesday, in a case pitting the U.S. Chemical Safety Board against Transocean Ltd., RIG -0.33% the owner of the doomed Deepwater Horizon drilling rig.

The House Energy and Commerce Committee asked the board, which investigates industrial accidents, to probe the explosion aboard the Deepwater Horizon two years ago that killed 11 workers and unleashed a massive offshore oil spill.

But Transocean says the agency has no powers offshore in the Gulf of Mexico and has been ignoring its subpoenas. Last October, the Justice Department filed suit against the company on behalf of the board. Arguments in the case will be heard Wednesday afternoon.

If the courts affirm the agency's jurisdiction, the board is likely to become more involved in offshore oil and gas installations. The board, which doesn't issue regulations, now conducts investigations onshore. Offshore operations are regulated by the U.S. Coast Guard, the Department of Interior and the Environmental Protection Agency.

The chemical board says it has a role to play in the aftermath of Deepwater Horizon, because it is focusing on the explosion aboard the rig, not the subsequent spill or its environmental impact. The investigator in charge of the case, Donald Holmström, led the probe into the 2005 blast at BPBP.LN -0.25% PLC's Texas City refinery.

The board says its purview extends to federal waters because the Transocean rig and the well it drilled for BP were a large industrial operation in an area that is indisputably a U.S. territory.

Although the chemical board cannot impose rules on companies, "they do have a strong bully pulpit," said George Wilkinson, a lawyer with the Houston-based law firm Vinson & Elkins, who isn't involved in the dispute.

Starting in mid-2010, the agency began asking Transocean for documents describing its safety practices, worker schedules, rig designs and management processes, and sought to interview key witnesses.

Unlike most other companies involved in the incident, Transocean declined to provide requested information except contact information for lawyers representing Transocean employees, the agency's managing director, Daniel Horowitz, said in an interview.

Mr. Horowitz said that "the CSB investigation will go deeper into issues of major accident prevention," seeking to establish what sort of industrial standards and procedures should apply to the offshore-drilling industry.

Transocean has declined to comment publicly on the case. But it said in court filings that it "should not be subjected to the burden of responding to the CSB's subpoenas," especially when other agencies have thoroughly investigated the accident.

Current stock price: $49.61

[BadThad]

PRICE TARGET CHANGES: FRIEDMAN, BILLINGS & RAMSEY
7:56a ET April 13, 2012 (Dow Jones) PRICE TARGET CHANGES: FRIEDMAN, BILLINGS & RAMSEY

Friedman, Billings & Ramsey issued the following share price target changes on Thursday:

Company Name Symbol New Trg Old Trg Current Time Span

INCREASE:

Diamond Offshore Drill DO $85.00 $75.00 $66.02 12 Months
Ensco plc ESV $77.00 $75.00 $55.53 12 Months
Rowan Companies RDC $52.00 $50.00 $33.99 12 Months
Transocean RIG $73.00 $70.00 $50.27 12 Months
Vantage Drilling VTG $2.45 $1.80 $1.55 12 Months
Noble Corporation NE $61.00 $55.00 $36.53 12 Months

[BadThad]

Transocean Ltd. Announces First Quarter 2012 Earnings Release Date and Conference Call Information
2:00p ET April 18, 2012 (Market Wire) Transocean Ltd. (NYSE: RIG) (SIX: RIGN) said it plans to report earnings for the three months ended March 31, 2012, on the afternoon of Wednesday, May 2, 2012, following the close of trading on the NYSE.

Current stock price: $50.60 (up over 3% today)

Apparently somewhat driven by this news:

Chevron: 'Pleased' With Move Of Brazil Criminal Suit To Rio
4:58p ET April 18, 2012 (Dow Jones) Chevron: 'Pleased' With Move Of Brazil Criminal Suit To Rio
SAO PAULO (Dow Jones)--Chevron Corp. (CVX) said Wednesday it was "pleased" by the transfer of a Brazilian criminal court case against the company from a federal court in Campos to federal courts in the state capital of Rio de Janeiro, the last of three cases to be moved to the capital.
The federal judge in Campos decided that the spill happened outside of national waters and involving a Liberia-registered ship, and so the trial should take place at the location of the company's headquarters, which in this case is Rio de Janeiro.
"Chevron is pleased with the court decision," the company said in a statement. "We are confident that a transparent and impartial examination of the facts will demonstrate that Chevron and its employees responded appropriately and responsibly to the incident."
Chevron declined to elaborate on why it was pleased with the decision.
Two civil suits have already been moved from Campos to Rio de Janeiro. People familiar with the case said that Chevron had petitioned the court to move the cases to Rio de Janeiro as Chevron didn't see Campos as the proper venue.
Legal analysts have said that Chevron may find a more sympathetic forum in Rio de Janeiro, the state's business capital, than on federal prosecutor Eduardo Santos de Oliveira's home turf in Campos.
Last month, Chevron, Transocean Ltd. (RIG, RIGN.VX), 16 employees of the two companies and one employee of local environmental firm Contecon were charged with environmental crimes related to a November oil spill at the Chevron-operated Frade offshore field. A drilling accident caused an estimated 2,400 to 3,000 barrels of oil to seep from cracks in the seabed.
"We respect the court's decision," Transocean said in a Wednesday statement. "Once all of the facts are fully examined, they will demonstrate that Transocean acted responsibly, appropriately and quickly last November, putting safety first."

[BadThad]

BOOM! OH YEA! Stock up 4% this morning on earnings news:

Transocean Posts Upbeat 1Q - Analyst Blog
7:59a ET May 3, 2012 (Zacks.com) Offshore drilling giant Transocean Ltd. (RIG) reported strong first quarter 2012 results, buoyed by an improvement in utilization levels and rising rig rates.

Earnings per share, excluding special items, came in at 64 cents; double that of the Zacks Consensus Estimate of 32 cents and also ahead of the year-ago adjusted profit of 59 cents.

Revenue

Total quarterly revenues of $2,331.0 million were up 8.7% year-over-year but missed the Zacks Consensus Estimate by 3.6% and, mainly attributable to lower efficiency on deep-water and mid-water floaters and a dip in drilling management services activity.

Transocean’s high-spec floaters contributed approximately 68% to total revenue, while mid-water floaters and jack-up rigs accounted for 15% and 11% of the total, respectively. The remaining revenue came from other rig activities, integrated services and others.

Operating Statistics

During the quarter, the company’s operating income totaled $270 million, down 27.4% year over year. This can be attributed to higher operating and maintenance expenses, which increased 3.8% to $1,410.0 million on the back of higher rig-related upkeep, repair and equipment certification costs.

Dayrates & Utilization

Compared to the first quarter of 2011, dayrates rose 2.6% (from $292,600 to $300,300), favorably impacted by a 10.3% rise in high-spec floater dayrates, offset to some extent by lower dayrates among mid-water floaters.

Overall fleet utilization was 61% during the quarter, up from first quarter 2011 utilization rate of 55%.

Capital Expenditure & Balance Sheet

Capital expenditures during the quarter totaled $260 million, of which the lion’s share went to Transocean’s contract drilling services segment. As of March 31, 2012, Transocean had cash/cash equivalents of $3,982.0 million and long-term debt of approximately $9,940.0 million (representing a debt-to-capitalization ratio of approximately 38.7%).

Recommendation & Rating

Switzerland-based Transocean is the world’s largest offshore drilling contractor and the leading provider of drilling management services worldwide.

We acknowledge that operational issues – such as tepid revenue efficiency and high costs – have held the company back. We also remain worried about the offshore driller’s mounting debt following the purchase of Norway's Aker Drilling ASA for approximately $2.2 billion.

However, with its technologically-advanced and versatile offshore drilling fleet, strong backlog and considerable pricing power, the company offers an unmatched level of earnings and cash flow visibility. A recent court ruling, which absolves RIG of some of the cleanup cost related to the Deepwater Horizon incident, has also eased the overhang on the stock. Nevertheless, we expect Transocean shares to remain soft until it fully works its way through claims related to the BP plc (BP) oil spill.

As such, we see the stock performing in line with the broader market and maintain our long-term Neutral recommendation, supported by a Zacks #3 Rank (short-term Hold rating).

[BadThad]

Transocean 1Q Net Slips 86% On Impairment
5:20p ET May 2, 2012 (Dow Jones) Transocean 1Q Net Slips 86% On Impairment
DOW JONES NEWSWIRES
Transocean Ltd.'s (RIG, RIGN.VX) first-quarter earnings fell 86% as impairment charges again weighed on the offshore oil-driller's bottom-line results.
Transocean, the world's largest offshore drilling company, was the owner of the Deepwater Horizon, the rig that exploded and sank in the Gulf of Mexico in 2010, killing 11 people and setting off the worst offshore oil spill in U.S. history. Transocean still faces significant challenges as it faces potentially costly litigation with BP PLC (BP, BP.LN) and the U.S. government over the oil spill.
The company in October completed its $1.43 billion acquisition of rival Aker Drilling ASA last month, a move that expands its business into the harsher, more challenging sub-Arctic waters.
For the latest period, Transocean reported a profit of $42 million, or 12 cents a share, compared with a year-earlier profit of $310 million, or 96 cents a share. The most recent period included net losses of 52 cents a share, primarily due to impairment, while the year-ago period included 43 cents of per-share gains, primarily due to the gain on the sale of the Trident 20.
Revenue rose 8.7% to $2.33 billion.
Analysts polled by Thomson Reuters had projected a per-share profit of 33 cents and revenue of $2.39 billion.
Operating and maintenance expenses were up 3.8%.
Average daily revenue rose 2.6% from a year earlier and rose 1.7% from the prior quarter. Its fleet utilization rate was 61%, up from 55% a year ago and unchanged from the previous quarter.
Shares were up by 17 cents to $50.10 after-hours Wednesday. The stock has gained 30% so far this year.

[BadThad]

Today's News, May 3, 2012
9:13a Guggenheim Upgrades Transocean from Neutral to Buy, Raises PT from $46 to $65

[BadThad]

Today's News, May 4, 2012
6:36a Credit Suisse Maintains Transocean at Neutral, Raises PT from $58 to $59

Current stock price: $49.41

[BadThad]

Whew....sold half my postion yesterday when it hit $52, lucky cause today it's gettng killed. I hope it keeps going down so I can reload!

Current stock price: $47.62 (down over 5%)

[BadThad]

Transocean LTD : Quantum Pacific Management Limited Exercises Put Option
03/01/2012 | 02:00am

As previously disclosed on a Current Report on Form 8-K filed with the Securities and Exchange Commission on October 24, 2007 by Transocean Inc. (File No. 333-75899), on October 18, 2007, a subsidiary of Transocean Ltd. ("Transocean") acquired a 50% interest in Transocean Pacific Drilling Inc. (the "Joint Venture"), a joint venture formed to operate two ultra-deepwater drillships, the Dhirubhai Deepwater KG1 and the Dhirubhai Deepwater KG2 (the "JV Rigs"). Quantum Pacific Management Limited ("Quantum"), a successor in interest to Pacific Drilling Limited, holds the remaining 50% interest in the Joint Venture.

Pursuant to a put option and registration rights agreement among Transocean, Quantum and the Joint Venture entered into in connection with the formation of the Joint Venture (the "Put Option Agreement"), Quantum has the right to exchange its interest in the Joint Venture for an amount (the "Purchase Price") to be paid in either Transocean shares ("Shares") or cash, at Quantum's election (the "Put Option").

On February 29, 2012, Quantum irrevocably exercised the Put Option. The Purchase Price is subject to negotiation with Quantum and, failing agreement, will be determined based on an appraisal of the fair value of the JV Rigs after taking into account outstanding Joint Venture indebtedness (as defined in the Put Option Agreement). At December 31, 2011 outstanding Joint Venture indebtedness was approximately $978 million. If Quantum elects to receive Shares, the fair value of the JV Rigs will be increased by a valuation multiple of 1.08.

Pursuant to the Put Option Agreement, Quantum must elect on or before March 29, 2012 to receive the Purchase Price in either Shares or cash. If Quantum elects to receive the Purchase Price in Shares, the number of Shares issued will be determined based on a Share price of $49.69.

Any such issuance of Shares will be made pursuant to Section 4(2) of the Securities Act of 1933, as amended, and be exempt from registration with the Securities and Exchange Commission, as a transaction not involving any public offering. The Put Option Agreement also grants Quantum certain registration rights with respect to such Shares and restricts Quantum's sale of such Shares until the earlier of the first anniversary of the date of issuance thereof or May 29, 2013.

The foregoing description of the Put Option Agreement is not complete and is qualified by reference to the complete document.

[BadThad]

http://blogs.wsj.com/deals/2012/01/0...d-deal-making/