NYSE:RIG

Transocean Inc. (RIG)

6.25
+0.07 (1.13%)
as of Jun 4, 2026, 8:00:00 pm Market Open.
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Investor Insights
star iconJun 4, 2026, 12:00 am

This summary was created by AI, based on 5 opinions in the last 12 months.

Transocean Inc. (RIG-N) has received mixed reviews from experts, highlighting its strong cash flow, valuation, and revenue-generating contracts. However, concerns regarding its high debt levels, particularly in comparison to peers, have been raised, with some experts mentioning recent downgrades linked to Petrobras exposure. The merger with Valaris and their positive outlook on contracting opportunities suggest potential for growth in the sector. While Transocean is recognized as a leader in the space, its performance might fluctuate in the short term due to macroeconomic factors. Some analysts express optimism about the long-term demand for oil services despite the current challenges, indicating a complex but promising future for the company.

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Consensus
Cautious
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Valuation
Fair Value
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Similar
Noble,NBL
COMMENT
One of the better drilling companies that got caught with the BP problems in the Gulf of Mexico. Have about $10 cash per share. Insurance costs have gone through the roof because of the spill and they still have litigation costs. If you are making a 1st time Buy, only do half.
STRONG BUY
Great value here. Should earn about $7.50 a share.
PAST TOP PICK
(A Top Pick June 10/10. Up 45%.) Sold his holdings for a 25% gain. Offshore drilling fundamentals have weakened. Drilling ban persisted longer than expected and strict rules are now so ambiguous a lot of companies don't know how to comply.
TOP PICK
With the BP mess, suffered 50% decline while earnings only dropped 16%. People were worried about litigation risk, but that is diminishing. Thinks it will build out and be good place to be.
BUY
With the US drilling moratorium in the Gulf now lifted, still sees a lot more to come. Has earning power of $8-$9 a share. Could easily move back into the mid-$70’s or $80’s in 6-12 months.
DON'T BUY
We still don't know what all the final liabilities are for the Gulf disaster. This company has 14 rigs in the Gulf and the moratorium is still on and hopefully gets lifted by year-end. Earnings estimates have dropped from 25%-30%. Too early yet.
BUY
Thinks market reaction was overdone because of Gulf spill. Looking for about $8 in earnings. Have 139 rigs in the gulf. 13 of their deep-water vessels were in the gulf. Important but not their whole business. Over time psychological overhang will start to dissipate. Trading very cheap at 5-6 times earnings.
BUY
A safer way to play the oil drilling sector than BP (BP-N). Added to his holdings just recently.
STRONG BUY
Hurt by the tragedy in the Gulf. Financial liability is limited. Trading at about half before disaster but earnings will probably be hit by only 16%. Trading at 5 or 6 times this year's earnings. Exposure in the Gulf is relatively limited.
BUY
Recently added to some of his holdings at around these levels. The situation with this company was probably a little overblown. Doesn't think there is as much a liability risk as owning BP directly. Trading at around 5.5X next year's earnings.
DON'T BUY
Still too early to buy deep-water drillers, particularly in this case as their main business is deep water drilling. Because of the moratorium, there are idle rigs in the Gulf of Mexico. Really a trading stock right now.
BUY
Trading at 6X earnings. Because they have so much away from the Gulf and their liabilities are somewhat limited and if you can stomach the volatility in the short term, you should make money buying it under $50.
BUY
They were the operators of the rig during the Gulf spill. Could see it into the mid-$60's in 12 months. Less than 10% of their fleet operates in the Gulf. About 5% yield.
BUY
Stock is about half but earnings estimates have only come down about 16%. Going forward, the price should build back in. Have 139 rigs and only 15 are in the Gulf of Mexico and there will be a lot of demand for their rigs.
BUY
Expect they will have a higher liability on the Gulf spill that people are estimating that he thinks the stock price is already saying that. Buying it at this price makes a lot of sense. There will be continued growth in deep water drilling.
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