Hercules Offshore downgraded to Market Perform from Outperform at Wells Fargo Wells Fargo downgraded Hercules Offshore and others in the Offshore Drilling sector citing the possibility for rate cuts amid downtime between contracts. The firm lowered its price target range for shares to $5-$6 from $8-$9.
News For HERO From The Last 14 Days
Check below for free stories on HERO the last two weeks.
Hercules Offshore: Q2 results reflect slowdown in domestic drilling activity Also cites idle timing on certain international rigs. The slowdown in the U.S. Gulf of Mexico has largely been driven by significant property transfers and consolidation among our customer base, which has led to disruptions in their respective drilling programs. The company said the latest discussions with various domestic customers suggest activity levels will rebound late this year. In the meantime, the company said it has taken proactive measures to reduce costs, including our recent decision to postpone the regulatory survey on one of our domestic rigs until visibility improves. Dayrates remain firm in the U.S. Gulf of Mexico, as stable crude oil prices support customer economics.