Current Watch List
BRS - Bristow Group
Bristow recently reported earnings that rose +36% on increased flight hours and better pricing. They provide flight services to offshore platforms around the world. Since offshore drilling is rapidly expanding and the distance from shore is increasing I expect Bristow to continue to grow earnings.
Last week they announced a private placement of $250 million in debt. They plan to use the proceeds to fund the purchase of additional aircraft to handle the increased workload.
Bristow Group Inc., formerly Offshore Logistics, Inc., is a provider of helicopter transportation services to the worldwide offshore oil and gas industry with operations in the United States Gulf of Mexico and the North Sea. The Company also has operations, both directly and indirectly, in offshore oil and gas producing regions of the world, including Australia, Brazil, China, Mexico, Nigeria, Russia and Trinidad. The Company also provides production management services for oil and gas production facilities in the United States Gulf of Mexico. As of March 31, 2006, the Company operated 331 aircraft, and its unconsolidated affiliates operated an additional 146 aircraft worldwide. The Company operates business in two segments: Helicopter Services and Production Management Services. Bristow Group Inc. conducted Helicopter Services through six business units: North American, South and Central American, Europe, West Africa, Southeast Asia, and Other International Operations.
Bristow has no LEAPS
Breakout trigger: $50.50
Breakdown trigger: $48.00
HOS - Hornbeck Offshore Services
Hornbeck recently beat estimates by a mile and reported that business was very good as offshore exploration and development increased. I would like to buy them on a dip given their recent gains but that may not be possible.
Hornbeck Offshore Services, Inc. provides offshore supply vessels (OSVs) to customers in the offshore oil and gas industry, primarily in the United States Gulf of Mexico and in select international markets. The focus of the Company's OSV business is on complex exploration and production activities, which include deepwater, deep well and other logistically demanding projects. Such other projects include, among others, the construction, maintenance and repair of offshore infrastructure. Hornbeck Offshore Services, Inc. is also a transporter of petroleum products through its tug and tank barge segment serving the energy industry, primarily in the northeastern United States and Puerto Rico. Oil companies, independent oil and gas exploration, development and production companies, and oil service companies constitute the majority of its customers for its OSV services, while refining, marketing and trading companies constitute the majority of its customers for its tug and tank barge services.
Breakdown trigger: $39.00
Buy 2009 $40 LEAP Call ZIG-AH