What Transocean Must Focus on Now

In the video below, Motley Fool energy analysts Taylor Muckerman and Joel South discuss one of the top stocks in the energy industry, Transocean (NYSE: RIG  ) . Transocean is currently focusing on improving its financial flexibility and providing investors with a strong balance sheet.

Transocean is trying to maintain its investment grade credit rating. It suspended its dividend in early June 2012 to concentrate cash flows and apply that to the balance sheet. Transocean is currently targeting a total of $5 billion-$6 billion with an adjusted long-term debt of $7 billion-$9 billion. The company is also going to try to improve its asset base. In order to maintain its edge over some of its peers, Transocean is trying to sell off low-spec rigs. RIG is providing thorough inspection for the equipment it uses, and it is also standardizing maintenance.

Domestic oil and gas service companies have taken a hit in the recent past due to a slowdown in the natural gas drilling boom of the last couple of years. As this market looks to rebound, investors would be wise to consider Halliburton, one of the top companies in the business and one of those most in tune with the domestic market. To access The Motley Fool's new premium research report on this industry stalwart, simply click here now and learn everything you need to know about how Halliburton is positioning itself both at home and abroad.

Read/Post Comments (0) | Recommend This Article (2)

Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

Be the first one to comment on this article.

Compare Brokers

Fool Disclosure

Sponsored Links

Leaked: Apple's Next Smart Device
(Warning, it may shock you)
The secret is out... experts are predicting 458 million of these types of devices will be sold per year. 1 hyper-growth company stands to rake in maximum profit - and it's NOT Apple. Show me Apple's new smart gizmo!

DocumentId: 2152573, ~/Articles/ArticleHandler.aspx, 5/6/2016 1:56:56 AM

Report This Comment

Use this area to report a comment that you believe is in violation of the community guidelines. Our team will review the entry and take any appropriate action.

Sending report...

Taylor Muckerman

Taylor is an Associate GM in our Fool International operations. Prior to that he covered all things Energy + Materials as an analyst. Over the years, he has built an investing skill set to rely on when evaluating companies inside and out. While at the Fool, he has made appearances on CNBC and Fox Business. In addition, he completed his MBA at the University of Maryland and will sit for the Level II CFA Exam.

Today's Market

updated 4 hours ago Sponsored by:
DOW 17,660.71 9.45 0.05%
S&P 500 2,050.63 -0.49 -0.02%
NASD 4,717.09 -8.55 -0.18%

Create My Watchlist

Go to My Watchlist

You don't seem to be following any stocks yet!

Better investing starts with a watchlist. Now you can create a personalized watchlist and get immediate access to the personalized information you need to make successful investing decisions.

Data delayed up to 5 minutes

Related Tickers

5/5/2016 4:03 PM
RIG $10.07 Down -0.07 -0.69%
Transocean CAPS Rating: ***
ESV $10.29 Down -0.20 -1.91%
Ensco CAPS Rating: ***
HAL $39.94 Up +0.08 +0.20%
Halliburton CAPS Rating: ****
NE $9.75 Down -0.31 -3.08%
Noble Corp CAPS Rating: ****
SDRL $4.07 Down -0.07 -1.69%
Seadrill CAPS Rating: ****