Transocean Ltd. (NYSE:RIG) stock climbed in Wednesday’s premarket trading after the offshore driller locked in roughly $184 million in new contracts.
This positive movement comes as broader markets experienced slight gains, with the Energy sector currently ranked as the best performing sector.
Transocean Secures $184M in New Contracts
Transocean secured contract fixtures for two of its harsh environment semisubmersibles in Norway, which are expected to contribute significantly to its backlog.
The Transocean Encourage was awarded a seven-well contract extension, estimated to provide around $152 million in backlog, while the Transocean Enabler has two one-well options exercised, contributing an additional $32 million.
The contracts are set to commence in the first quarter of 2027, ensuring continuity for the rigs’ current programs and extending their operational commitments through December 2027.
This strategic move underscores Transocean’s position as a leading provider of offshore drilling services, particularly in ultra-deepwater and harsh environments.
Valaris Acquisition
This week, Transocean disclosed a deal to acquire Valaris Ltd. (NYSE:VAL) for around $5.8 billion. The merger will result in a significant industry player with an industry-leading backlog of approximately $10 billion, enhancing cash flow visibility.
Once finalized, Transocean shareholders will hold about 53% of the combined company on a fully diluted basis, with Valaris shareholders owning the remaining 47%.
Stock Surges on Market Strength
The broader market experienced gains on the previous trading day, with the Energy sector rising 0.78%. Transocean’s stock is moving higher alongside this sector strength, indicating that it is aligning with broader market trends.
Transocean’s stock is currently trading 12.8% above its 20-day simple moving average (SMA) and 35% above its 100-day SMA, demonstrating longer-term strength. Shares have increased 40.57% over the past 12 months and are currently positioned closer to their 52-week highs than lows.
The RSI is at 64.37, which is considered neutral territory, while the MACD is above its signal line, indicating bullish momentum. The combination of neutral RSI and bullish MACD suggests mixed momentum.
- Key Resistance: $5.50
- Key Support: $5.00
Energy Sector Outperforms; RIG Lags
Transocean is currently underperforming its sector, which is ranked 1 out of 11 sectors, having gained 0.78% on the previous trading day. Despite the stock’s positive movement, it is lagging behind the sector’s performance by approximately 4.64 percentage points.
The Energy sector has shown strong performance over the past 30 days, with a gain of 15.62%, indicating a robust trend that Transocean is not fully capitalizing on at this moment. This suggests that while the company is making strides, it may need to enhance its performance to align more closely with sector gains.
Transocean Earnings Forecast and Analyst Views
The countdown is on: Transocean Ltd. is set to report earnings on February 19, 2026.
- EPS Estimate: 8 cents (Up from Loss of 9 cents YoY)
- Revenue Estimate: $1.04 billion (Up from $952.00 million YoY)
Analyst Consensus & Recent Actions:
The stock carries a Hold Rating with an average price target of $6.44. Recent analyst moves include:
- BTIG: Buy (Raises Target to $10.00) (Feb. 9)
- BTIG: Buy (Raises Target to $6.00) (Feb. 2)
- Susquehanna: Positive (Raises Target to $5.00) (Jan. 7)
Benzinga Edge Scores Highlight RIG’s Potential
Below is the Benzinga Edge scorecard for Transocean, highlighting its strengths and weaknesses compared to the broader market:
- Growth: Strong (Score: 3.28) — The stock shows potential for growth compared to peers.
- Momentum: Bullish (Score: 92.1) — Stock is outperforming the broader market.
The Verdict: Transocean’s Benzinga Edge signal reveals a strong momentum score, indicating that the stock is currently outperforming the broader market. However, the growth score suggests that while there is potential, it may not be fully realized yet, indicating a need for careful monitoring.
RIG Price Action: Transocean shares were up 1.65% at $5.53 during premarket trading on Wednesday. The stock is approaching its 52-week high of $5.77, according to Benzinga Pro data.
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