Today's stock selection:
We are maintaining our Buy rating on Transocean
shares ahead of the company s first-quarter results.
With oil prices sitting at record highs, Transocean
should continue to benefit from increased
exploration and production (E&P) spending by oil
companies, improved rig utilization rates, and higher
dayrates. We continue to believe that the company s
recently completed merger with GlobalSantaFe
transforms it into an offshore drilling powerhouse.
With a backlog of nearly $32 billion, the new
Transocean offers an unparallel level of earnings
and cash flow visibility.