ESV - Assessing Leading Offshore Drillers After Recent Oil Price Collapse - Part II - Diamond Offshore Drilling
Last week, I discussed the general picture for the offshore drilling industry after recent oil price declines and was particularly concerned about the ongoing lack of deepwater exploration activity as supermajors have been largely sticking to their short-cycle investment strategies for now.
Today, I will focus on Diamond Offshore Drilling Inc. (NYSE:DO), a mid-sized offshore driller with several unique characteristics. The company is a floater pure play, currently owning 4 modern drillships, seven ultra-deepwater, four deepwater and two mid-water semi-submersible rigs of different ages. Diamond Offshore's semi-submersible fleet is heavily weighted towards rigs