How Long Can Hercules Rise?

When natural gas prices plummeted, many of the shallow water offshore drilling rigs in the Gulf of Mexico moved to oil heavy plays internationally to recoup profits. There are currently 35 rigs in the region, with 18 of them belonging to Hercules Offshore (NASDAQ: HERO  ) . With E&P companies finding liquids content in the shallow water of the gulf coast, market fundamentals are at all-time highs. In this video, Motley Fool energy analyst Joel South tells investors how long this incredible skyward trend for Hercules can continue, and what risks might hamper the firm going forward. 

If you're an energy investor looking for more exciting offshore opportunities, then you should look into one of the more exciting plays in the space: Seadrill. To learn more about the strengths and weaknesses of this company, as well as what to expect from Seadrill going forward, be sure to check out this brand-new premium report put together by one of our top Stock Advisor analysts. Click here to get started.


Read/Post Comments (2) | 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.

  • Report this Comment On February 15, 2013, at 2:22 AM, justice215 wrote:

    Herculese wll really start to rise as the U.S really starts to use nat gas.The deep well drillers will always be profitable. But your shallow well drillers like Herculese will fare far better in the long run for there cost will always be significantly lower as well as the risk of spills that can and cannot be contained. Herculese on the way to $10 a share and if management keeps doing a good job $20 is on the way.

  • Report this Comment On February 15, 2013, at 10:42 AM, TMFTheWhisperer wrote:

    I agree with your natural gas assumption but worried about the LLS/ WTI spread. If LLS and WTI converge, the economics make more sense for E&P's to move onshore hurting HERO's pricing power.

Add your comment.

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: 2251024, ~/Articles/ArticleHandler.aspx, 9/23/2014 10:49:16 PM

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...


Advertisement