This Day On The Street
Continue to site
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

Gulf Repair Job Tougher Than Expected

"The Gulf Coast infrastructure is a mess," said Richard Bachman, chairman and CEO of New Orleans-based Energy Partners (EPL), a Gulf of Mexico and Gulf Coast exploration and production concern. "Getting back to our platforms is one thing; accessing pipelines and processing plants is a much greater challenge."

Bachman said his company hopes to have about 80% of its production back online in the next few weeks, but it will take several more weeks to bring its prized East Bay field back to pre-storm levels due to damage to pipelines and processing facilities. "Anything underwater will have to have extensive electrical repairs," he said.

Other Gulf producers at the IPAA confab told the same story, with the same conclusion to draw: Production will come back only as fast as pipelines and processing facilities return to service. While most pipeline companies have been eerily quiet about the status of pipelines, major facilities are still offline with little guidance as to when they will return to full strength.

Don't Miss the Boats

The need to inspect and repair pipelines and other Gulf of Mexico infrastructure has resulted in big demand for work boats in the Gulf of Mexico. Companies like Hornbeck Offshore (HOS - Get Report) -- which my firm has provided investment banking services to in the past year -- and Tidewater Offshore (TDW - Get Report) are seeing strong demand for their vessels, with day rates continuing to climb. As a result of storm demand, boats that were working for as little as $10,000 to $12,000 per day last year are getting as much as $20,000 or more per day currently.

The boat market is so strong that Tidewater is bringing at least a dozen boats out of idle status and putting them to work in the Gulf. Assuming day rates in the $10,000 to $12,000 range, 20 boats could add an unexpected 50 cents to Tidewater earnings in the coming year.
2 of 3

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Real Money

More than 30 investing pros with skin in the game give you actionable insight and investment ideas.

Product Features:
  • Access to Jim Cramer's daily blog
  • Intraday commentary and news
  • Real-time trading forums
Only $49.95
14-Days Free
14-Days Free
EPL $37.73 0.69%
HOS $10.47 0.00%
OII $33.72 0.00%
NBR $8.40 0.00%
NOV $33.47 0.00%


Chart of I:DJI
DOW 17,651.26 -99.65 -0.56%
S&P 500 2,051.12 -12.25 -0.59%
NASDAQ 4,725.6390 -37.5850 -0.79%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs