SeaHawk Drilling's (NASDAQ:HAWK) pain is Hercules Offshore Inc.'s ((NASDAQ:HERO) gain, as SeaHawk has filed for bankruptcy protection while Hercules will acquire Seahawk's fleet of offhore drilling rigs for $105 million.
SeaHawk is a victim of the Obama administration's over-response to the BP (NYSE:BP) oil spill, being devastated by the loss of business from the moratorium and eventual refusal to grant permits in the region for deepwater drilling.
Hercules Offshore said they're going to acquire the assets with 22.3 million shares of its stock, $25 million in cash to retire Seahawk debt and additional cash for working capital. The February 10 closing price of $3.62 a share for Hercules' stock brings the value of the deal to $105 million.
The deal will be part of the Chapter 11 bankruptcy SeaHawk filed for on Friday.
The bankruptcy court has been asked to expedite the deal, which should close sometime in the second quarter.
Seahawk was trading at $4.67, down $3.23, or 40.89 percent, as of 1:01 PM EST. Hero was trading at $4.30, up $0.68, or 18.78 percent.
Showing posts with label Seahawk. Show all posts
Showing posts with label Seahawk. Show all posts
Monday, February 14, 2011
Thursday, January 27, 2011
Hercules (Nasdaq:HERO), Seahawk (Nasdaq:HAWK), ENSCO (NYSE:ESV), Rowan (NYSE:RDC), Noble (NYSE:NE) EPS All Lowered
Hercules (Nasdaq:HERO), Seahawk (Nasdaq:HAWK), ENSCO (NYSE:ESV), Rowan (NYSE:RDC) and Noble (NYSE:NE) all have a "Neutral" rating on them from, Global Hunter Securities, which also lowered the EPS estimates on all five of the companies.
Global says, "The supply/demand balance in the US Gulf jackup market may have come into question last week with the influx of five Noble Corp (NE) jackups for temporary stacking for cost savings purposes. We understand these rigs to be awaiting opportunity back in Mexico and are not immediately part of the marketed supply. However, we are reluctant to accept that all five rigs will return to Mexico under contract with PEMEX near-term, particularly given the NOC's desire to high-grade its rig fleet (despite the slowness of that process). While the potential to add rigs to the US market had existed with the notion of PEMEX upgrading its jackup fleet, we assumed PEMEX's tardiness to act suggests the US Gulf permitting process could be closer to normalization and rig demand potentially improving, similar to pre-Macondo levels..."
For Hercules Offshore (HERO) FY12 EPS lowered from -$0.34 to -$0.42 and PT cut from $3.40 to $3.10.
For Seahawk Drilling (HAWK) FY11 EPS lowered from -$3.81 to -$3.90 and FY12 from -$3.31 to -$4.25. PT lowered from $10 to $8.50.
For ENSCO International (ESV) FY11 EPS lowered from $4.39 to $3.97 and FY12 from $5.49 to $5.43. PT increased from $47 to $55.
For Rowan (RDC) FY11 EPS lowered from $2.30 to $2.20 and FY12 from $3.69 to $3.62. PT increased from $32 to $36.
For Noble (NE) FY11 EPS lowered from $3.25 to $2.07 and FY12 from $4.95 to $4.33. PT increased from $37 to $40.
"Our price targets fluctuate as a result of our estimate changes, but are higher for ESV, RDC and NE as we roll into 2012 estimates for our valuation (more detail in company-specific section below). We have a Neutral outlook for the group, and we are maintaining our Neutral ratings on each of the five stocks mentioned in this report."
Global says, "The supply/demand balance in the US Gulf jackup market may have come into question last week with the influx of five Noble Corp (NE) jackups for temporary stacking for cost savings purposes. We understand these rigs to be awaiting opportunity back in Mexico and are not immediately part of the marketed supply. However, we are reluctant to accept that all five rigs will return to Mexico under contract with PEMEX near-term, particularly given the NOC's desire to high-grade its rig fleet (despite the slowness of that process). While the potential to add rigs to the US market had existed with the notion of PEMEX upgrading its jackup fleet, we assumed PEMEX's tardiness to act suggests the US Gulf permitting process could be closer to normalization and rig demand potentially improving, similar to pre-Macondo levels..."
For Hercules Offshore (HERO) FY12 EPS lowered from -$0.34 to -$0.42 and PT cut from $3.40 to $3.10.
For Seahawk Drilling (HAWK) FY11 EPS lowered from -$3.81 to -$3.90 and FY12 from -$3.31 to -$4.25. PT lowered from $10 to $8.50.
For ENSCO International (ESV) FY11 EPS lowered from $4.39 to $3.97 and FY12 from $5.49 to $5.43. PT increased from $47 to $55.
For Rowan (RDC) FY11 EPS lowered from $2.30 to $2.20 and FY12 from $3.69 to $3.62. PT increased from $32 to $36.
For Noble (NE) FY11 EPS lowered from $3.25 to $2.07 and FY12 from $4.95 to $4.33. PT increased from $37 to $40.
"Our price targets fluctuate as a result of our estimate changes, but are higher for ESV, RDC and NE as we roll into 2012 estimates for our valuation (more detail in company-specific section below). We have a Neutral outlook for the group, and we are maintaining our Neutral ratings on each of the five stocks mentioned in this report."
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