A Hercules Offshore jackup under tow. Photo: Offshore Towing Inc.
Dan Dicker, Energy contributor at TheStreet.com, talks with Jim Cramer about the recent downgrade of Hercules Offshore to bankruptcy by Deutsche Bank. With only a few of its rigs currently in service and several destined to finish contracts soon, the cash flow at HERO looks dire. But who is likely to be the next victim of depressed oil prices?
No other offshore driller is quite as specialized in the very competitive shallow water subsector or as leveraged as HERO, but several others will still face tremendous continuing difficulties going forward. One stock in particularly that Dicker thinks hasn’t stopped going down is Ensco. Although it is well financed, it has contracted to build 6 new rigs while 19 of its currently employed rigs will come offline in 2015.
Dan Dicker holds a position in Seadrill.
Via The Street
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