The comeback of offshore drilling was in motion this week when SeaDrill
This follows a five-year contract confirmed last week with Pemex in Mexico for the company's new West Pegasus semisubmersible rig. That deal is for approximately $850 million, and drilling will commence in the third quarter.
I told you we couldn't do that
But the good news for SeaDrill hasn't spread to the entire industry. Hercules Offshore
Deepwater is the place to be
SeaDrill also ordered another ultra-deepwater drillship that will be completed in 2013, adding to its capabilities.
SeaDrill looks particularly attractive in the drilling space with a 5.4% dividend yield, a forward P/E ratio of under 11, and a growing fleet of high-value ultra-deepwater drilling units. With no end in sight to high oil prices, the demand for drilling units should remain strong well into the future.
Fool contributor Travis Hoium does not have a position in any company mentioned. You can follow Travis on Twitter at @FlushDrawFool, check out his personal stock holdings or follow his CAPS picks at TMFFlushDraw.
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