Dahlman Rose Provides Color on the Offshore Drilling Sector

In a research report published today, Dahlman Rose provided color on the Offshore Drilling sector. Dahlman Rose is optimistic about the sector as it sees an increase in activity.

In the report, Dahlman Rose states, "The ultra deepwater market has shown improving signals recently, with a flurry of contract awards during the past several weeks. There have been six contract awards of one year or greater thus far in May, compared to one in April and five during 1Q11. Dayrates have been in the mid- to high-$400,000/day range depending upon start-up and contract duration."

Among the most active companies was Anadarko Petroleum Corporation (NYSE: APC), which "awarded Diamond Offshore two, five-year commitments for each of Diamond's newbuild drillships, Ocean BlackHawk and Ocean BlackHornet. Total contract revenue for the two programs is estimated at $1.8 billion."

On Friday, Anadarko added 4.1% to its value to close the week at $74.58.