Atwood Oceanics Inc. (ATW, Financial) filed Quarterly Report for the period ended 2009-03-31.
Atwood Oceanics Inc. its international operating subsidiary Atwood Oceanics Pacific Limited and related subsidiaries are engaged in the business of international offshore drilling and completion of exploratory and developmental oil and gas wells as well as related support management and consulting services. Enhancing shareholder value through safe quality operations is at the core of all of the Atwood Group?s activities. Atwood Oceanics Inc. has a market cap of $1.63 billion; its shares were traded at around $25.46 with a P/E ratio of 6.5 and P/S ratio of 3. Atwood Oceanics Inc. had an annual average earning growth of 7.8% over the past 10 years.
On April 21, 2009, the ATWOOD AURORA, our newly constructed ultra-premium jack-up unit, commenced working offshore Egypt under its two-year contract with RWE Dea Nile GmbH (“RWE Dea”). Delays in RWE Dea accepting the rig due to a longer than expected period for completing final rig commissioning of certain equipment in order to commence operations resulted in an adjustment in the dayrate to $133,000. This contract includes a cost escalation clause and provides an option for one additional year at a dayrate of $178,000.
We are currently building two semisubmersibles for deepwater drilling: (1) the ATWOOD OSPREY, a conventionally moored, 6,000 foot water depth unit, (scheduled for delivery in early 2011, with an estimated total cost of approximately $600 million), and (2) a to-be-named dynamically positioned, 10,000 foot water depth unit (scheduled for delivery in mid-2012, with an estimated total cost of approximately $750 million). Through March 31, 2009, we have invested approximately $400 million toward the construction of these two drilling units. Funding of the approximate $950 million remaining on the construction of these two units will come from internally generated funds and borrowings under our two credit facilities, which have a combined borrowing capacity of $580 million. We currently have $300 million borrowed under our credit facilities and will endeavor to keep our maximum borrowing below $500 million during the construction of these two units.
The ATWOOD HUNTER is currently working under contract commitments that extend to September 2012 at operating dayrates that range from $511,000 to $545,000, subject to adjustment for cost escalations. The ATWOOD EAGLE is currently working under a contract commitment offshore Australia at a dayrate of $405,000, which extends to June 2010. Following completion of this commitment, the rig will commence a drilling program that could extend for six months or longer at a dayrate of approximately $430,000 to approximately $450,000, subject to adjustment of cost escalations. The ATWOOD FALCON is currently working under its contract which extends to August 2009 at a dayrate of $160,000 or $200,000, depending upon water depth of each well drilled. Following completion of this contract commitment, the rig will then commence a two-year contract commitment at a dayrate of $425,000, subject to adjustment for cost escalations.
The ATWOOD SOUTHERN CROSS has been idle since mid-December 2008. Before that, the rig was working at a dayrate of $352,000. During this idle period, the rig has been undergoing certain equipment repairs and maintenance which has kept its operating costs relatively high at approximately $70,000 per day during the second quarter of fiscal year 2009. This planned level of maintenance is not expected to be completed until the end of the third quarter of fiscal year 2009, which will continue to keep its operating costs around $70,000 per day. However, if the rig remains idle, per day operating
costs are expected to decline below $50,000 during the fourth quarter of fiscal year 2009. The VICKSBURG has a current contract commitment offshore Thailand at a dayrate of $154,000 which is currently expected to extend into July 2009. Upon termination of the VICKSBURG s contract, we anticipate that the rig will be moved to a shipyard in Thailand to undergo a $7 million to $8 million life enhancing upgrade that could take approximately 8 weeks to complete. The ATWOOD BEACON is drilling its final well at a dayrate of $133,500 under its current contract offshore India that is also currently expected to extend into July 2009. Virtually all of these upgrade costs are expected to be capitalized. If the ATWOOD BEACON becomes idle in July 2009, we expect that the rig will be moved to a stacking location, probably in India, and will undergo certain maintenance that will keep its operating costs for the fourth quarter of fiscal year 2009 relatively high at around $70,000 per day.
Read the The complete ReportATW is in the portfolios of Robert Rodriguez of FPA Capital, Robert Rodriguez of FPA Capital, David Dreman of Dreman Value Management, David Dreman of Dreman Value Management.
Atwood Oceanics Inc. its international operating subsidiary Atwood Oceanics Pacific Limited and related subsidiaries are engaged in the business of international offshore drilling and completion of exploratory and developmental oil and gas wells as well as related support management and consulting services. Enhancing shareholder value through safe quality operations is at the core of all of the Atwood Group?s activities. Atwood Oceanics Inc. has a market cap of $1.63 billion; its shares were traded at around $25.46 with a P/E ratio of 6.5 and P/S ratio of 3. Atwood Oceanics Inc. had an annual average earning growth of 7.8% over the past 10 years.
Highlight of Business Operations:
Besides the ATWOOD SOUTHERN CROSS, which is currently idle, we could also incur idle time on the RICHMOND commencing in June 2009 and on the ATWOOD BEACON and VICKSBURG commencing in July 2009 based upon current expected timing of contract terminations for each drilling unit. We will continue to pursue additional contract commitments for these four rigs; however, there is no guarantee that we will not incur idle time on some or all of these units. We expect that any additional contract commitments we are able to secure for the VICKSBURG and ATWOOD BEACON will be at dayrate levels below their current dayrates of $154,000 and $133,500, respectively. The current dayrate on the RICHMOND is $52,500 compared to $85,000 on its previous well.On April 21, 2009, the ATWOOD AURORA, our newly constructed ultra-premium jack-up unit, commenced working offshore Egypt under its two-year contract with RWE Dea Nile GmbH (“RWE Dea”). Delays in RWE Dea accepting the rig due to a longer than expected period for completing final rig commissioning of certain equipment in order to commence operations resulted in an adjustment in the dayrate to $133,000. This contract includes a cost escalation clause and provides an option for one additional year at a dayrate of $178,000.
We are currently building two semisubmersibles for deepwater drilling: (1) the ATWOOD OSPREY, a conventionally moored, 6,000 foot water depth unit, (scheduled for delivery in early 2011, with an estimated total cost of approximately $600 million), and (2) a to-be-named dynamically positioned, 10,000 foot water depth unit (scheduled for delivery in mid-2012, with an estimated total cost of approximately $750 million). Through March 31, 2009, we have invested approximately $400 million toward the construction of these two drilling units. Funding of the approximate $950 million remaining on the construction of these two units will come from internally generated funds and borrowings under our two credit facilities, which have a combined borrowing capacity of $580 million. We currently have $300 million borrowed under our credit facilities and will endeavor to keep our maximum borrowing below $500 million during the construction of these two units.
The ATWOOD HUNTER is currently working under contract commitments that extend to September 2012 at operating dayrates that range from $511,000 to $545,000, subject to adjustment for cost escalations. The ATWOOD EAGLE is currently working under a contract commitment offshore Australia at a dayrate of $405,000, which extends to June 2010. Following completion of this commitment, the rig will commence a drilling program that could extend for six months or longer at a dayrate of approximately $430,000 to approximately $450,000, subject to adjustment of cost escalations. The ATWOOD FALCON is currently working under its contract which extends to August 2009 at a dayrate of $160,000 or $200,000, depending upon water depth of each well drilled. Following completion of this contract commitment, the rig will then commence a two-year contract commitment at a dayrate of $425,000, subject to adjustment for cost escalations.
The ATWOOD SOUTHERN CROSS has been idle since mid-December 2008. Before that, the rig was working at a dayrate of $352,000. During this idle period, the rig has been undergoing certain equipment repairs and maintenance which has kept its operating costs relatively high at approximately $70,000 per day during the second quarter of fiscal year 2009. This planned level of maintenance is not expected to be completed until the end of the third quarter of fiscal year 2009, which will continue to keep its operating costs around $70,000 per day. However, if the rig remains idle, per day operating
costs are expected to decline below $50,000 during the fourth quarter of fiscal year 2009. The VICKSBURG has a current contract commitment offshore Thailand at a dayrate of $154,000 which is currently expected to extend into July 2009. Upon termination of the VICKSBURG s contract, we anticipate that the rig will be moved to a shipyard in Thailand to undergo a $7 million to $8 million life enhancing upgrade that could take approximately 8 weeks to complete. The ATWOOD BEACON is drilling its final well at a dayrate of $133,500 under its current contract offshore India that is also currently expected to extend into July 2009. Virtually all of these upgrade costs are expected to be capitalized. If the ATWOOD BEACON becomes idle in July 2009, we expect that the rig will be moved to a stacking location, probably in India, and will undergo certain maintenance that will keep its operating costs for the fourth quarter of fiscal year 2009 relatively high at around $70,000 per day.
Read the The complete ReportATW is in the portfolios of Robert Rodriguez of FPA Capital, Robert Rodriguez of FPA Capital, David Dreman of Dreman Value Management, David Dreman of Dreman Value Management.
