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6 Biggest Energy Earnings Reports Next Week

NEW YORK ( TheStreet) -- Earnings season is my favorite time of year, even with the go-go nonstop action that forces so many sleepless nights. We have over 100 companies that are worth keeping your eyeballs focused on. Included here are the six most market moving energy-related companies.

DO Chart DO data by YCharts

Diamond Offshore (DO - Get Report)

Background: Diamond Offshore operates as an offshore oil and gas drilling contractor worldwide. It offers a range of services in the ultra-deepwater, deepwater and midwater markets, as well as in the non-floater or jack-up market. The company was founded in 1989 and is headquartered in Houston, Texas. Diamond is a subsidiary of Loews Corporation. Diamond Offshore trades an average of 1.3 million shares per day with a marketcap of $9 billion.

52-Week Range: $50.73 to $73.50

Book Value: $32.24

Price to Book: 2

DO is forecast to report lower third-quarter earnings before the market opens on Oct. 18.

The consensus estimate is currently $1.01 a share, falling 84 cents (45.4%) from $1.85 during the same period last year. Analysts' estimates this quarter range from 83 cents, to a high of $1.16 per share.

Real Money's Bret Jensen writes about Diamond in Buy These Drillers on the Dip .

Diamond has many analysts following it, but opinion is mixed. Currently, Diamond has 16 buy recommendations, 17 holds and six recommend selling, out of 39 analysts covering the company. The stock appreciated 18% in the last year, and the average analyst target price for Diamond Offshore is $72.52.

I looked at Diamond's chart to gain a better understanding of market perception. The 200-day moving average is climbing at a sustainable bullish pace. The 60-day moving average is above the 200-day moving average while trending higher. The 60-day is rounding and the price recently broke lower.

What does it all mean? Technical traders and trend followers are not going to jump at the chance to invest based on the chart.

Shareholders receive $3.50 annually in dividend payments (well, sorta, kinda . . . actually Diamond has a small "regular" dividend and also has paid a "special" dividend over and over to bring the effective rate higher). Diamond's yield based on a recent price is almost eye popping at 5.36%.

The current proportion sold short based on the float is 7.1%, and I find this much interest by short sellers worth looking at in more depth. The high yield and the payout are the first things to look at. Short sellers have to pay what is known as "in lieu of" for the dividends the buyers of the stock would normally receive. Short sellers don't enjoy paying over 5% to maintain their short unless they believe the stock is likely to fall by a much greater amount.

The payout is high, and all things considered, I would not count on the high dividend as much as many others paying in the same range. The fact that the majority of the dividend is "special" is a red flag.

DO Revenue Quarterly Chart DO Revenue Quarterly data by YCharts
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BHI $47.39 -2.00%
DO $24.54 1.20%
HAL $41.60 0.70%
NE $11.02 -1.80%
SLB $79.39 -1.20%


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