BP plc (ADR) (BP), Ensco PLC (ESV), SeaDrill Ltd (SDRL), Transocean LTD (RIG): CAPScall of the Week: Pacific Drilling

Another factor to consider is the sheer explosion in natural gas and oil field finds in the ultra-deepwater regions around the world. The amount of untapped resources in the Gulf and off the coast of Africa is phenomenal and provides more than enough impetus for the world’s largest integrated oil and gas companies to keep exploring and hiring contractors like Pacific Drilling to recover the oil and gas for them.

Don’t count out, at least domestically, President Obama’s push for a more energy-independent America. Domestic natural gas discoveries in onshore shale formations are going to play a big part in achieving this goal, but even the Obama administration understands how important it’ll be to utilize ultra-deepwater energy resources.

Putting this all together gives Pacific Drilling ample opportunities to expand its fleet and become increasingly profitable over the next decade. With expenses well under control and valued at just 12 times forward earnings, with four new drillships expected to be delivered in a span of just eight quarters, I’d call this stock notably undervalued and underappreciated.

The article CAPScall of the Week: Pacific Drilling originally appeared on Fool.com.

Fool contributor Sean Williams has no material interest in any companies mentioned in this article. You can follow him on CAPS under the screen name TMFUltraLong, track every pick he makes under the screen name TrackUltraLong, and check him out on Twitter, where he goes by the handle @TMFUltraLong.The Motley Fool owns shares of, and recommends, SeaDrill. It also owns shares of Transocean.

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