What Transocean Must Focus on Now

Before you go, we thought you'd like these...
Before you go close icon

In the video below, Motley Fool energy analysts Taylor Muckerman and Joel South discuss one of the top stocks in the energy industry, Transocean . Transocean is currently focusing on improving its financial flexibility and providing investors with a strong balance sheet.

Transocean is trying to maintain its investment grade credit rating. It suspended its dividend in early June 2012 to concentrate cash flows and apply that to the balance sheet. Transocean is currently targeting a total of $5 billion-$6 billion with an adjusted long-term debt of $7 billion-$9 billion. The company is also going to try to improve its asset base. In order to maintain its edge over some of its peers, Transocean is trying to sell off low-spec rigs. RIG is providing thorough inspection for the equipment it uses, and it is also standardizing maintenance.

Domestic oil and gas service companies have taken a hit in the recent past due to a slowdown in the natural gas drilling boom of the last couple of years. As this market looks to rebound, investors would be wise to consider Halliburton, one of the top companies in the business and one of those most in tune with the domestic market. To access The Motley Fool's new premium research report on this industry stalwart, simply click here now and learn everything you need to know about how Halliburton is positioning itself both at home and abroad.


The article What Transocean Must Focus on Now originally appeared on Fool.com.

Joel South owns shares of Halliburton Company. Taylor Muckerman owns shares of Ensco. The Motley Fool owns shares of Halliburton Company, Transocean, and Seadrill. Motley Fool newsletter services recommend Halliburton Company and Seadrill. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

Copyright © 1995 - 2012 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.

Read Full Story

Want more news like this?

Sign up for Finance Report by AOL and get everything from business news to personal finance tips delivered directly to your inbox daily!

Subscribe to our other newsletters

Emails may offer personalized content or ads. Learn more. You may unsubscribe any time.

From Our Partners