Transocean Ltd. (NYSE:RIG) is one of the best NYSE stocks under $5 to buy. On December 15, Morgan Stanley initiated coverage of Transocean Ltd. (NYSE:RIG) with an Equal Weight rating and a $4.50 price target. The investment bank frames its stance by placing Transocean relative to peers, stating that the stock is now “middle of the pack” among offshore drillers.
Pixabay/Public Domain
Independent of the analyst action, on December 8, Transocean secured a new contract for six wells offshore Australia. The project is a fixed 320-day campaign slated for commencement in the first quarter of 2027, the company said. It added that the deal adds approximately $130 million to its contract backlog, noting that the figure excludes additional compensation the company will receive for the mobilization and demobilization of the rig to Australian waters. The agreement also includes priced options that, if fully exercised by the operator, could keep the drillship stationed in Australia until early 2030.
Transocean will rely on its ultra-deepwater drillship, the Deepwater Skyros, to operationalize this project. Built in 2013, this drillship is capable of operating in water depths of up to 12,000 feet and can drill to a maximum depth of 40,000 feet. Before its move to Australia, the rig was deployed in West Africa for projects in Angola and the Ivory Coast.
Transocean Ltd. is an offshore drilling contractor. It owns and operates one of the world’s largest fleets of mobile offshore drilling units, including ultra-deepwater and harsh-environment rigs used by major oil companies for exploration and production.
READ NEXT: 11 Best Healthcare AI Stocks to Buy Now and 11 Best Hydrogen Stocks to Buy Right Now.
This article is originally published at Insider Monkey.
