HERO - Sector: Energy---Industry: Oil Well Services & Equipment

[setravis]

Profile: 

Hercules Offshore, Inc.
9 Greenway Plaza
Suite 2200
Houston, TX 77046
United States - Map
Phone: 713-350-5100
Fax: 713-350-5105
Website: http://www.herculesoffshore.com

Details   
Index Membership: N/A
Sector: Basic Materials
Industry: Oil & Gas Drilling & Exploration
Full Time Employees: 2,200


Business Summary   

Hercules Offshore, Inc., together with its subsidiaries, provides shallow-water drilling and marine services to the oil and natural gas exploration and production industry in the U.S. Gulf of Mexico and internationally. The company serves integrated energy companies, independent oil and natural gas operators, and national oil companies. As of February 24, 2010, it owned a fleet of 30 jackup rigs, 17 barge rigs, 3 submersible rigs, 1 platform rig, a fleet of marine support vessels, and 60 liftboat vessels, as well as owned 4 retired jackup rigs and 10 retired inland barges located in the U.S. Gulf of Mexico. The company was founded in 2004 and is based in Houston, Texas.

Business Overview

BRIEF: For the nine months ended 30 September 2010, Hercules Offshore, Inc.'s revenues decreased 14% to $485.2M. Net loss from cont. operation decreased 21% to $50M. Revenues reflect decreased income from Domestic Offshore segment, lower Domestic Liftboats segment income and a fall in the International Offshore segment. Net loss also reflects an increase in interest expenses and the absence of gain on early retirement of debt net. http://www.herculesoffshore.com

[setravis]

Big Ass Gainers
Gusher Of A Day For Hercules Offshore
02/14/11, 05:02 PM EST
HERO shoots higher after asset buy.

shares are soaring on Monday after the company announced Friday that it would buy assets owned by Seahawk Drilling for $105 million.

Shares are higher by over 17 percent.

[setravis]

Hercules Offshore Shares Popped:
What You Need to Know.

Although we don't believe in timing the market or panicking over market movements,
we do like to keep an eye on big changes,
just in case they're material to our investing thesis.

What: Shares of offshore driller Hercules Offshore (Nasdaq: HERO) were soaring today, gaining as much as 23% on heavier-than-average volume.

So what: As my fellow Fool Toby Shute pointed out, the demise of Pride International (NYSE: PDE) spinoff Seahawk Drilling (Nasdaq: HAWK) is what's providing the excitement for Hercules. Why? Because Hercules is buying the assets of Seahawk at fire-sale prices.

Now what: At the end of last year, I highlighted Hercules as a beaten-down stock worth buying because it was trading at a hefty discount to its shareholders' equity. The risk, of course, is the company's focus in the Gulf of Mexico, which has been a dicey place to do business ever since the BP oil spill. With the purchase of the Seahawk assets, the company will increase its presence in the Gulf, though the increased heft could put it in a better competitive position.

The stock's jump today eliminates some of the opportunity in Hercules' stock, but it's still trading well below its equity value. Considering the issues in the Gulf and the company's debt load, though, I still see this as a speculative pick that should be part of a portfolio of other beaten-down stocks.

Add it to your watchlist......

[setravis]

Gold in old oil fields...

There's another consolidation story playing out today in the oil services sector.

Seahawk Drilling(HAWK) 4.75, +0.10, +2.15%), a relatively small player among offshore drillers, has entered Chapter 11 bankruptcy. As part of the restructuring process, it will sell its fleet of jack-up rigs. These are rigs that operate in the relatively shallow coastal waters off the Gulf of Mexico, an area where all the easy oil was found years ago.

That smells like money to Hercules Offshore Inc. (HERO 4.33, +0.06, +1.41%)  . The Houston-based driller is buying 20 of Seahawk's rigs at a steep discount. For reasons similar to GE's, Hercules sees ample opportunity to keep Seahawk's old fleet gainfully employed, perhaps as support rigs working the very same wells GE expects to overhaul.

A winning strategy? Apparently the market thinks so. Hercules shares jumped nearly 18% Monday.

[setravis]

Hercules Offshore: Small-Cap Winner...
was the biggest gainer among small-caps Monday afternoon after it announced late Friday that it would buy assets owned by Seahawk Drilling for $105 million.

Seahawk Drilling fell 3.25, or 41%, to 4.65,
after it said Friday it would file for bankruptcy protection and sell assets to Hercules Offshore, whose shares rose 65 cents, or 18%, to 4.27.

Day's Range: 4.19 - 4.47
52wk Range: 2.05 - 4.86
Volume: 18,590,647
Avg Vol (3m): 2,976,820
Market Cap: 490.13M
P/E (ttm): N/A
EPS (ttm): -0.67
Div & Yield: N/A (N/A)

Technicals
Most Actives
Gap Up
Percentage Gainer

Last Price Quote is: 
RS Rating: 93 

[setravis]

Justified...
Finally, some justice! With shallow water driller HERO becoming an up and coming winner after being sucker punched by the bureaucrats in Washington...

On a Dip...
If you can get back in on a dip, do it, on Saturday they bought 504 million dollars worth of assets for 100 million dollars, we could very easily see $10 a share within a month, especially if we get any analyst upgrades, or as the institutions see the value here. HAWK had a 31 dollar book value, this was a VERY good move for HERO, but we're only getting started.

Nice to see this pup moving in the right direction.

[setravis]

Broke Out to a new high 20% above 13-Day MA!
38% above the 50-Day MA...
Surged more than 20 percent to a new 52-week high of $5.20 mid-way through Friday's session. The shares fell back slightly to finish with a gain of 75 cents, or nearly 18 percent, to $4.98 in heavy volume of 16.4 million shares 


Day's Range: 4.26 - 5.20
52wk Range: 2.05 - 5.20
Volume: 16,497,226
Avg Vol (3m): 3,388,010
Market Cap: 571.62M

Technicals
Record Price High
Most Actives
Record Price Break Out
Percentage Gainer

Last Price Quote is:
20.22%above 13-day EMA
38.32%above 50-day EMA
RS Rating: 96 

[setravis]

HERO - Momentum...

Hercules Offshore, Inc., together with its subsidiaries, provides shallow-water drilling and marine services to the oil and natural gas exploration and production industry in the U.S. Gulf of Mexico and internationally.

[setravis]

Hercules Offshore Shares Plunged:
What You Need to Know...

Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes...just in case they're material to our investing thesis.

What: Shares of oil driller Hercules Offshore (Nasdaq: HERO) were trading down as much as 14% in intraday trading on heavy volume.

So what: The story out of Hercules' corner today is anything but heroic. In an SEC filing yesterday, the company revealed that it is being investigated by the SEC and that the Department of Justice is also reviewing some of its activities. Hercules may have run afoul of the U.S.'s Foreign Corrupt Practices Act, which basically prevents companies from winning business abroad through bribes. The probe may be particularly notable considering the strength that Hercules has seen in its international division as business in the Gulf of Mexico has struggled.

Now what: Violations of the FCPA are hardly unheard of in the oil and gas industry. Just last November, Royal Dutch Shell (NYSE: RDS-A) along with drillers Transocean (NYSE: RIG) , Noble (NYSE: NE) , and Pride International (NYSE: PDE) was among a group of companies that paid fines and settlements in connection with alleged FCPA violations. The fines in those cases varied considerably in size; Noble paid a total of $8.2 million, while Pride doled out $56.2 million. It's notable that all three drillers mentioned above are substantially larger than Hercules.

After a massive run in Hercules' stock that has seen it roughly triple since last fall, the drop today shouldn't be all that painful for all but the most recent buyers of the stock. However, with the extent of the violations still unknown, investors will want to watch this very closely

Day's Range: 5.50 - 5.99
52wk Range: 2.05 - 6.99
Volume: 18,560,215
Avg Vol (3m): 5,938,200
Market Cap: 651.08M
P/E (ttm): N/A
EPS (ttm): -1.17
Div & Yield: N/A (N/A)

Technicals
Most Actives
Gap Down
Percentage Loser

Last Price Quote is:
-9.95%below 13-day EMA
7.06%above 50-day EMA
RS Rating: 94