| Hercules Offshore, Inc. | (NQ: HERO) |
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HERO is undervalued |
May 25, 2013
Hercules Offshore (NASDAQ: HERO) provides shallow-water and land contract drilling to both integrated energy companies and independent oil and natural gas companies. HERO focuses its operations in the Gulf of Mexico region, but also operates in Qatar, India, and West Africa.
HERO remains susceptible to global oil demand and oil prices. Rising demand and limited supply contribute to higher prices, which in turn make drilling in unconventional reserves more profitable. This means that companies will move increasingly from land reserves, which are generally the lowest cost, to offshore reserves as prices rise. However, if prices rise even more and as offshore and land reserves are depleted, deepwater drilling may become more feasible as an alternative.
(Read more at Wikinvest
) - News
- Company Overview
- Business Segments
- Domestic offshore[2]
- International offshore[2]
- Inland[2]
- Domestic liftboats[2]
- International liftboats[2]
- Delta towing[2]
- Trends and Forces
- Moratorium of offshore drilling in the Gulf of Mexico[5]
- Higher oil and natural gas prices increase the demand for HERO's drilling and liftboat services
- Adverse weather in the Gulf of Mexico could cause significant fleet damage
- Depletion of shallow-water reserves and higher oil prices could promote deepwater drilling as a feasible alternative to offshore drilling
- Competition
- References
