Rigs are just getting started
These are great quotes from FBR, they really seem to do their homework:
NEW YORK (MarketWatch) -- FBR on Friday recommended shares of jackup drilling contractors Noble Corp, Ensco International and Global Santa Fe . "Based on a comparison of the jackup drillers to the U.S. land drillers, as well as our service coverage group, we believe the current valuations of NE, ESV, and GSF reflect an expectation in the market that day rates for their rigs will start to decline in the second half," FBR said in a note to clients. "Our proprietary supply and demand analysis continues to show a very robust international jackup rig market where demand growth continues to outpace supply growth on an annualized basis, a trend that shows little signs of abating."
I think I would have included ATW in that group. Atwood Oceanics has an absolute wonderful set of future contracts laid out infront of it, most of which is already signed. Go to their website (www.atwd.com) and pull up the contract status for each rig. Underneath the "etimated contracted dayrate", you can see the growth built in. The favorable market for the drillers will most likely continue, increasing the size of contracts and increased dayrates into the next decade.
I love this sector - should be a good ride for a long while.