These Oil & Gas Drilling Stocks Delivered Great Earnings

Diamond Offshore Drilling Inc. (NYSE:DO) reported net income above Wall Street’s expectations for the third quarter. Net income for Diamond Offshore Drilling Inc. rose to $256.9 million ($1.85 per share) vs. $198.5 million ($1.43 per share) in the same quarter a year earlier. This marks a rise of 29.4% from the year earlier quarter. Revenue rose 9.8% to $878.2 million from the year earlier quarter. DO beat the mean analyst estimate of $1.47 per share. It beat the average revenue estimate of $820.8 million.

“We are pleased with our third quarter results, which reflect continued strength in the market,” said Larry Dickerson, President and Chief Executive Officer of Diamond Offshore. “Since the second quarter, we have added 14 new contracts, totaling 18 rig years or $1.4 billion of revenue backlog.” “We continue to execute on initiatives to contain operating costs and minimize unplanned rig repair downtime,” said Dickerson. “Additionally, results benefited from revenues related to the mobilization of a rig from Brazil to the Gulf of Mexico and a shift of some planned downtime into the fourth quarter.”

Competitors to Watch: Pride International, Inc. (NYSE:PDE), Transocean LTD (NYSE:RIG), Helmerich & Payne, Inc. (NYSE:HP), Patterson-UTI Energy, Inc. (NASDAQ:PTEN), Noble Corporation (NYSE:NE), Atwood Oceanics, Inc. (NYSE:ATW), Vantage Drilling Company (AMEX:VTG), Seahawk Drilling, Inc. (NASDAQ:HAWK), Rowan Companies, Inc. (NYSE:RDC), and Hercules Offshore, Inc. (NASDAQ:HERO).

Noble Corporation (NYSE:NE) reported higher profit for the third quarter as revenue showed growth. Net income for the oil and gas drilling and exploration company rose to $135.3 million (53 cents per share) vs. $86 million (34 cents per share) in the same quarter a year earlier. This marks a rise of 57.3% from the year earlier quarter. Revenue rose 20.5% to $737.9 million from the year earlier quarter. NE fell short of the mean analyst estimate of 55 cents per share. It fell short of the average revenue estimate of $758.5 million.

David W. Williams, Chairman, President and Chief Executive Officer, noted, “The third quarter was highlighted by a number of accomplishments that further advance the strategic transformation of our fleet. Options for two additional JU3000N design high specification jackup rigs were exercised, bringing the total number of these units to six currently under construction. Additionally, we ordered a fourth ultra-deepwater drillship from Hyundai Heavy Industries Co. Ltd., increasing the total number of new, dynamically positioned drillships being added to our fleet to eight. Furthermore, this quarter our ongoing projects have achieved several milestones including the delivery of the drillship Noble Bully I, which is now in transit to the Gulf of Mexico. The drillship, Noble Bully II, has departed the dock to begin sea trials and the Noble Globetrotter I is undergoing the installation of topsides and commissioning.”

Competitors to Watch: Transocean LTD (NYSE:RIG), Diamond Offshore Drilling, Inc. (NYSE:DO), Pride International, Inc. (NYSE:PDE), Hercules Offshore, Inc. (NASDAQ:HERO), ENSCO PLC (NYSE:ESV), Atwood Oceanics, Inc. (NYSE:ATW), Vantage Drilling Company (AMEX:VTG), Seahawk Drilling, Inc. (NASDAQ:HAWK), and Rowan Companies, Inc. (NYSE:RDC).

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