Dahlman Rose Sees Focus In Gulf Drilling

Dahlman Rose & Co released a report today on offshore drilling, noting that offshore drilling shares are "trading in close correlation with oil prices." Suggestions that the drilling moratorium could be lifted earlier than the November deadline seem to be emboldening operators to fix primarily shallow-water jackups to work in the Gulf of Mexico, Dahlman Rose said. In either event, they believed that companies with high end fleets would be in a much better position with the future regulatory environment. Ultimately they have a Buy rating listed for Atwood Oceanics ATW with a target price of $40, Ensco PLC ESV with a $52 target, Noble Corp NE with a target of $42, Rowan Companies RDC at a $33 target, and SeaDrill Limited SDRL with a target of $30. Hold ratings were recommended for Diamond Offshore Drilling DO, Pride International PDE, and Transocean Ltd. RIG.