I am closing out ocean driller Pride International (aytoinvest.com/quote/PDE">PDE) to reduce exposure to oil - this is not my favorite name in the space but we specifically owned it hoping for a buyout bid based on evidence [May 2: Restarting Pride International as Takeover Bait] but it has now been 3 months and while there was smoke there is no fire. It might still happen but I want to reduce exposure and raise cash so I'm exiting with a small loss. The stock has a decent 5-6% type of pop this AM on earnings.
We sold the last of the position (0.5% stake) today in the low $41s on the spike post earnings. We've owned this name for 2 round trips in the fund and are up overall, but a small loss on the last iteration. Utilization rates on their midwater rigs were horrid actually, but we owned it for the deepwater rigs. But again, individual fundamentals mean nothing in this group - anything 6 degrees of oil trades with oil. Technically the stock bounced to the 50 day moving average and then was turned back on its initial probe there this morning.
- Oil and gas driller Pride International Inc (PDE) posted higher second-quarter profit, helped by increased dayrates for its deepwater and midwater rigs offsetting the lower utilization levels.
- Net income for the quarter was $187.7 million, or $1.07 per share, compared with $146.1 million, or 83 cents a share, a year ago.
- The company posted income from continuing operations of $151.6 million, or 87 cents a share, compared with $120.1 million, or 68 cents a share, a year ago. The company's latest quarter included a gain of 7 cents a share related to the sale of its platform rig fleet.
- Revenue rose more than 5 percent to $560.3 million.
- Analysts on average expected the company to earn 76 cents a share, before special items, on revenue of $557.6 million, according to Reuters Estimates.
- Average daily revenue for the company's deepwater rigs rose more than 26 percent to $298,400.Utilization for the deepwater rigs was 96 percent during the quarter, compared with 97 percent last year.
- Average daily revenue for midwater rigs rose more than 7 percent to $217,800. Utilization for midwater rigs was 68 percent, compared with 86 percent last year.
No position
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