Pride International, Inc. (PDE)

akok (< 20) Submitted: 7/15/08 3:49 AM : Start Price: $42.84 PDE Score: -37.80

Pride International operates the a fleet of ultra-deep rigs (drillships and semisubmersibles) - it has 11 rigs that are capable of operating at depths >3000', and 3 more under construction. Drillship rates are in excess of $300K / day - at a 80% utilization, that's $87 million / year per rig. Given the limited supply of these rigs, it looks like it'll be able to maintain its margins for at least a few years more.

Future oil discoveries are likely to lie in deepwater - oil discovery onshore has reached geologic limits.

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