FBR cuts Halliburton, Transocean on Gulf of Mexico woes

[Joanne98]

Source: Reuters

April 30 (Reuters) - FBR Capital Markets cut oilfield services companies Halliburton Energy Services Inc (HAL.N) and Transocean Ltd (RIGN.S)(RIG.N) to "market perform" from "outperform," citing investor worry on potential liability related to the recent oil rig accident in the Gulf of Mexico.

An oil drilling rig, operated by Switzerland-based Transocean and on lease to London-based BP Plc (BP.L)(BP.N), exploded in flames on April 20 and collapsed two days later, leading to massive oil spills.

Following the incident, a class-action lawsuit was filed against oil giant BP, Transocean, owner of the Deepwater Horizon drilling platform, and Halliburton, which according to the suit, was engaging in cementing operations of the well and well cap.

"The stocks will be under an overhang of investor worry about their potential liability for this tragic accident for at least several months," analyst Robert MacKenzie wrote in a note to clients.

MacKenzie also cut his price target on the stock of Transocean to $87 from $110 and on Halliburton's stock to $35 from $44.


Read more: http://www.reuters.com/article/idUSSGE63T0F920100430

---

Dick Cheney's a loser.

[florida08]

1. well why am I not surprised

Halliburton, which according to the suit, was engaging in cementing operations of the well and well cap.

Had heard this was the problem and what caused the blowout. Another good catch. Hope they sink like that platform did.

[Gman]

2. Whatever happened to Cheney's options?

did he ever exercise them or what?