This Day On The Street
Continue to site
ADVERTISEMENT
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

Icahn, Elliott Associates and Other Investors Drill for Oil and Gas Deals

Speculation that Transocean could increase capital to shareholders began this month after the company admitted criminal charges for its role in a 2010 oil spill in the Gulf of Mexico and agreed to pay out $1.4 billion in fines to settle claims with the Department of Justice.

With criminal litigation in the rear-view mirror and a fine in line with Transocean's provisions, some speculated the company would be free to boost its dividend, an analysis seemingly confirmed by Icahn's investment.

Icahn has had a busy 12 months in the oil and gas space, highlighted by an activist stake in embattled driller Chesapeake Energy (CHK - Get Report), which has netted billions in asset sales and a revamping of the company's board.

Sandridge Energy (SD - Get Report), another noteworthy energy sector activist play, is currently battling hedge funds Mount Kellett Capital Management and TPG-Axon Capital Management over whether CEO Tom Ward should be fired.

All told, there's a cloudy outlook for the oil and gas industry.

Many drillers have spent wildly to gain access to highly valued shale assets, but may be stretched financially as drilling programs kick into gear. Meanwhile, gas-focused drillers still face uncertain commodity prices that could make production too costly.

See TheStreet ratings for Hess and Transocean for more on the outlook for both companies.

-- Written by Antoine Gara in New York

2 of 2

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
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
SYM TRADE IT LAST %CHG
CHK $14.54 0.00%
HES $75.21 0.00%
SD $1.84 0.00%
RIG $16.40 0.00%
AAPL $130.28 0.00%

Markets

DOW 18,080.14 +21.45 0.12%
S&P 500 2,117.69 +4.76 0.23%
NASDAQ 5,092.0850 +36.0220 0.71%

Partners Compare Online Brokers

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs