Dahlman Reports Increased Offshore Activity

Dahlman Rose has published a research report on oil field services as the industry continues to grow its offshore project backlog, showing a significant increase in offshore activity. In the report, Dahlman Rose writes "The last three months have seen an acceleration of indications for offshore rig demand for both jackups and floaters. Longer lead time mid-water and deepwater projects offer high visibility into a strong backlog of projects that may drive floater activity through 2012, as potential project demand translates into actual rig demand with expanding upstream (exploration) budgets. Both the floater and jackup markets indicate an impending expansion of activity from existing players in traditional markets. That said, it appears that both shallow and deeper water markets may expand into new areas/countries within legacy basins as well as see growth into new regions. More evidence of new projects under consideration supports recent guidance from oil services companies for an expansion of offshore related earnings on the horizon." Companies related to this report include: Baker Hughes BHI Buy $50.16 PT: $74.00 Cameron Int'l CAM Buy $48.69 PT: $62.00 Dril-Quip DRQ Buy $77.67 PT: $83.00 FMC Tech FTI Buy $82.80 PT: $88.00 Halliburton HAL Buy $38.01 PT: $53.00 Key Energy Services KEG Buy $10.30 PT:$14.00 Nabors Industries NBR Hold $22.41 PT: -- National-Oilwell Varco NOV Buy $61.73 PT: $75.00 Patterson-UTI PTEN Hold $19.69 PT: -- Schlumberger Ltd. SLB Buy $76.43 PT: $95.00 Weatherford Int'l WFT Buy $20.05 PT: $24.00