Global Hunter Comments On Solid 4Q For Hercules Offshore

In a report published by Global Hunter, Hercules Offshore HERO put up a solid 4Q, reporting an EPS of $(0.03) compared to its expectation/ consensus of $(0.12)/$(0.11).

Global Hunter said that the better than expected performance was largely driven by reduced drilling OPEX, which is the basis for improvement in its estimates going forward. “GOM operations seem to be improving while the international market should sustain utilization longer term. The merger of Seahawk Drilling (HAWK) remains on track to close in 2Q, as well. We are adjusting our price target to $5.30 from $3.70 (note valuation discussion on page 2), but given the stock's performance in recent weeks, we believe shares remain fairly valued and we reiterate our Neutral rating.”

Hercules Offshore closed yesterday at $5.86.