Hercules Offshore, Inc. (HERO), Chevron Corporation (CVX): Fleet Further Strengthened

Positive second quarter
The frenetic oil search and extraction in the Gulf bodes well for more contract extensions and added revenues for Hercules Offshore, Inc. (NASDAQ:HERO). Already, its domestic offshore revenue for the 2013 second quarter has risen by about 41% to $127 million from $90.1 million, mainly due to increased day rates for its rigs.

For the quarter, Hercules Offshore, Inc. (NASDAQ:HERO) recorded $16.6 million net income from continuing operations on revenue of $211.5 million, compared with a $52.5 million loss on revenue of $154.5 million a year ago. Significantly, the company’s EPS of $0.10 for the quarter was ahead of the $0.05 analysts’ consensus estimate. For its trailing 12 months, the company came out with a 10.2% operating margin and has a forward P/E ratio of 9.

Concluding thoughts
Hercules Offshore, Inc. (NASDAQ:HERO) is well positioned to capitalize on its second quarter gains and sustain these positive results for the long term. The tailwinds from its gulf operations, coupled with its broadening international platform and more focused business model, appear robust enough for this company to be a leading pick among oil and gas drilling players.

The article Search for a Hero in Offshore Drilling Can Start Right Here originally appeared on Fool.com.

Arturo Cuevas has no position in any stocks mentioned. The Motley Fool recommends Chevron. 

Copyright © 1995 – 2013 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.