Atwood Oceanics, Inc. (NYSE:ATW)

CAPS Rating: 5 out of 5

The Company, together with its subsidiaries is engaged in the international offshore drilling and completion of exploratory and developmental oil and gas wells and related support, management and consulting services.


Player Avatar Growthhound (46.31) Submitted: 12/4/2012 9:37:18 PM : Outperform Start Price: $47.26 ATW Score: -31.80

ATW is a conservative well managed company. They spend there cash wisely. That is why I am not concerned that they do not pay a dividend. They have borrowed money wisely while interest rates are low to purchase multiple high performance drilling rigs that will lease at 500K per day. They seem to have no problems securing long term leasing contracts for their new or older rigs to large well known established oil companies. I believe other companies have confidence in ATW's ability to deliver and manage the rigs efficiently. ATW treats there employees well and are very focused on safety. Their balance sheet has always been excellent. There is no doubt in my mind that they will have a huge increase in revenues and earnings when their new rigs come online this year and next year. If they have no major changes in management it would not surprise me that they will outperform the market in the next 5 years and beyond.

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