J.P. Morgan trims outlook for offshore drillers

[Joanne98]

Source: Marketwatch

NEW YORK (MarketWatch) -- Analysts at J.P. Morgan Chase /quotes/comstock/13*!jpm/quotes/nls/jpm (JPM 39.96, -0.09, -0.23%) said on Monday that they cut their earnings and price targets for several offshore drilling companies. The companies effected are Diamond Offshore /quotes/comstock/13*!do/quotes/nls/do (DO 70.43, -0.12, -0.18%) , Ensco Plc. /quotes/comstock/13*!esv/quotes/nls/esv (ESV 38.76, +1.92, +5.21%) , Noble Corp. /quotes/comstock/13*!ne/quotes/nls/ne (NE 32.28, -0.14, -0.43%) , Pride International Inc. /quotes/comstock/13*!pde/quotes/nls/pde (PDE 25.15, +0.92, +3.80%) , and Transocean Ltd. /quotes/comstock/13*!rig/quotes/nls/rig (RIG 60.06, +0.82, +1.38%) . Transocean owned the Deepwater Horizon drilling rig, which BP Plc. had leased to drill the well now spewing oil into the Gulf of Mexico. "With changes to deepwater drilling clearly on they way, we've made our first pass at quantifying the impact to the Oilfield Service industry. While many of the potential changes will likely be positive in the medium and longer term, we see a number of negative implications for offshore drillers over the next several years, causing us to reduce our estimates and price targets for the group," the analysts said. "While shares of Transocean are increasingly attractive, we still see downside risk. Instead, we would use market weakness as an opportunity to own Halliburton /quotes/comstock/13*!hal/quotes/nls/hal (HAL 26.40, -0.33, -1.24%) and Schlumberger /quotes/comstock/13*!slb/quotes/nls/slb (SLB 59.71, -0.79, -1.31%) ," they concluded.


Read more: http://www.marketwatch.com/story/jp-morgan-trims-outlook-for-offshore-drillers-2010-05-24

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There goes Zug's economy!

[Soylent Brice]

1. you might want to edit this.

kind of difficult to read.

[naaman fletcher]

2. Personally,

I think we will see Transocean go under, maybe others. There will probably be at least a two year halt in new drilling. Rig rates will plummet, and many drillers will go under.