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Transoceanic drilling machine in the Gulf of Mexico.
Derick E. Hingle/Bloomberg
Transocean
stocks have entered a crack, to the point where many investors would consider taking some money off the table. But chairman Chad Deaton just bought more shares of the offshore drilling company on the open market.
Transocean shares (ticker: RIG) rose 65% in 2022, compared to a 19% decline in the
S&P 500 index.
So far in 2023, the stock is up 46%, while the index has gained about 1%.
“Our outlook for the industry is positive based on several fundamental factors,” Transocean said in its annual report, which was filed at the end of February. Citing increased demand for hydrocarbons and declining global supply, it noted that the company said the Russian invasion of Ukraine and associated economic sanctions have contributed to raising oil prices.
As of February 9, Transocean’s contract backlog was $8.54 billion, up from $7.27 billion on October 13. the company added.
Deaton paid $222,000 for 30,000 Transocean shares on March 2, an average price of $7.40 each. He now owns 141,000 Transocean shares, according to a form Deaton filed with the Securities and Exchange Commission.
Transocean did not respond to a request to make Deaton available for comment.
His purchase of Transocean stock signals confidence in the outlook, as Deaton paid a much higher price than his most recent prior open market purchase. In November 2022, Deaton paid $203,450 for 50,000 shares, an average price of $4.07 each.
Deaton joined Transocean’s board of directors in 2012 and has served as chairman since 2019.
Baker Hughes
(BKR) from 2004 to 2012. Deaton oversaw Baker Hughes’ transformative acquisition of BJ Services in 2009.
Inside Scoop is a regular feature by Barron about stock transactions by corporate executives and board members – so-called insiders – as well as major stockholders, politicians and other prominent figures. Because of their insider status, these investors are required to disclose stock transactions to the Securities and Exchange Commission or other regulatory groups.
Write to Ed Lin at [email protected] and follow up @BarronsEdLin.
