$RIG

Hedge funds reduced long positions in Amazon, Tesla, Meta, Alphabet, and Apple in August, while increasing shorts in Amazon, Alphabet, and Apple. AI debt financing raised concerns about future cash flows. Nvidia saw a decline in short interest. MACOM Technology Solutions shifted from short to long bias. Semiconductor sector sentiment turned modestly less bullish, with Applied Materials, Nvidia, and Lam Research seeing the most long crowding.

Transocean secured a two-well contract for its Deepwater Conqueror drillship in Equatorial Guinea, starting in 2027. The 170-day campaign follows its current $530,000/day US Gulf of Mexico contract. The deal adds $80m to backlog, excluding extra services and mobilization costs, according to the company.

Valaris (VAL) shares rose 8.5% after oil prices increased 4.5% to $106/barrel due to strikes on Russian, Ukrainian, and Saudi oil facilities. The strikes may reduce land-based oil supply, benefiting offshore drillers like Valaris, which is merging with Transocean (RIG). The merger would create the world's largest offshore rig operator. Valaris' stock performance depends on supply disruptions and merger approval.

Transocean (RIG) rose 6.5% to $5.80 after securing a $80M drilling contract. Options volume surged 5.2x. EOG Resources (EOG) gained 2.9% to $152.87 after UBS raised its target to $183. Options volume increased 2.3x.

Transocean Ltd. (RIG) secured a $80 million two-well drilling contract in Equatorial Guinea, starting in 2027. The deal will add to backlog, excluding extra services. The company's stock rose 0.82% premarket to $5.50.

Transocean Ltd. (RIG) announced contracts for two drilling rigs, adding $185M to backlog. Despite this, shares fell over 4% due to declining oil prices, which dropped below $80/barrel amid U.S.-Iran peace deal hopes. RIG stock is down year-to-date, with bearish retail sentiment on Stocktwits.

Amplitude Energy's Juliet-1 well in Australia reached 2,299 m, finding a 60 m gas interval. The company, with a 50% stake, will decide on completion after further data. Partner is O.G. Energy.

Transocean (RIG) stock rose 8.6% post-earnings, trading at $20.10. ProPetro (PUMP) reported $305.8M revenue, down 6.2% YoY, missing estimates, yet stock up 7.5% to $11.46. NESR (NESR) saw 59.1% YoY revenue growth to $520.8M, beating estimates, with stock up 19.7% to $34.75. Bristow Group (VTOL) reported $411.8M revenue, up 9.4% YoY, exceeding expectations, but stock down 9.3% to $43.32.

Moerus Worldwide Fund's Q2 2026 letter highlights Transocean (RIG) and its acquisition of Valaris, noting the deal surfaced significant value. RIG's stock rose 2.53% in a month, trading between $3.01 and $7.66 over 52 weeks. The fund's underperformance was driven by limited tech exposure and energy sector declines, but it benefited from energy investments. Moerus maintains a long-term value approach.

Transocean (RIG) shares rose 4.4% to $6.18 as oil prices neared $91, highlighting its debt-reduction efforts. The company's backlog stands at $6.7B, with a recent $300M contract win. Despite improved utilization, debt remains a challenge. Q2 revenue was $966M, with $212M in free cash flow.