Atwood Keeps The Old, And Invests In The New

Jefferies & Company has published a research report on Atwood Oceanics ATW as the company maintains its good contract cover and invests in new growth. In the report, Jefferies writes "After virtually no new-build jack-up orders for 2 years, ATW placed the first ones in a flurry of 11 speculative orders that have been announced since early-October. Specifically, in early-October, ATW ordered 2 Pacific Class 400 designed jack-ups (+ 3 options) for $190MM each from the PPL Shipyard with deliveries slated for late 2012. We believe ATW's order is well timed, providing the Company favorable terms and deliveries for in-demand high-spec jack-ups. In addition, we believe the rigs are well positioned for the multi-jack-up tender by Chevron CVX($83.94, NC) in Thailand." Jefferies maintains its Hold rating and $35 price target. Atwood Oceanics closed Friday at $83.94.