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Atwood Oceanics Inc. Reports Operating Results (10-Q)

February 08, 2011 | About:

Atwood Oceanics Inc. (NYSE:ATW) filed Quarterly Report for the period ended 2010-12-31.

Atwood Oceanics Inc. has a market cap of $2.67 billion; its shares were traded at around $43.06 with a P/E ratio of 9.9 and P/S ratio of 4.1. Atwood Oceanics Inc. had an annual average earning growth of 26.1% over the past 10 years.Hedge Fund Gurus that owns ATW: George Soros of Soros Fund Management LLC, Steven Cohen of SAC Capital Advisors, Jim Simons of Renaissance Technologies LLC. Mutual Fund and Other Gurus that owns ATW: Robert Rodriguez of FPA Capital, Columbia Wanger of Columbia Wanger Asset Management, First Pacific Advisors of First Pacific Advisors, LLC, David Dreman of Dreman Value Management, Chuck Royce of Royce& Associates, Chuck Royce of Royce& Associates, Jeremy Grantham of GMO LLC.

Highlight of Business Operations:

The Atwood Osprey, a conventionally moored, 8,200 foot water depth semisubmersible (scheduled for delivery from the Jurong shipyard in the second quarter of fiscal year 2011, with an estimated total cost of approximately $625 million) should begin its three year contract with Chevron in Australia during April 2011. The Atwood Condor, a dynamically-positioned, 10,000 foot water depth semisubmersible, is on schedule to be delivered from the Jurong shipyard during the third quarter of fiscal year 2012, with a total cost of approximately $750 million. This rig is currently being marketed globally for appropriate contract opportunities. As of December 31, 2010, we have invested approximately $850 million toward the construction of these two drilling units.

As of December 31, 2010, we have $180 million borrowed under our 5-year $300 million credit facility executed in October 2007 (as amended from time to time, the "2007 Credit Agreement") and $120 million borrowed under our 5-year $280 million credit facility executed in November 2008 (as amended from time to time, the "2008 Credit Agreement") for a total debt to capitalization ratio of 17%. No additional funds have been borrowed under either credit agreement subsequent to December 31, 2010. Both credit facilities contain various financial covenants that, among other things, require the maintenance of a leverage ratio, not to exceed 5.0 to 1.0, an interest expense coverage ratio not to be less than 2.5 to 1.0 and a required level of collateral maintenance whereby the aggregate appraised collateral value shall not be less than 150% of the total credit facility commitment. The collateral for these two credit facilities, collectively, primarily consists of preferred mortgages on six of our drilling units (Atwood Eagle, Atwood Hunter, Atwood Falcon, Atwood Southern Cross, Atwood Aurora and Atwood Beacon). We were in compliance with all financial covenants under both credit agreements at December 31, 2010, and at all times during fiscal years 2010 and 2009. For more information regarding financial covenants, see Note 5 to our Consolidated Financial Statements for the quarter ended December 31, 2010.

We estimate that our total capital expenditures for fiscal year 2011 will be approximately $625 million, substantially all of which is contractually committed, and expect to end fiscal year 2011 with outstanding long-term debt between $460 million and $500 million. As of December 31, 2010, we had expended approximately $915 million towards the construction of our four drilling units currently under construction, i

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