Affiliation Disclosure & Disclaimer:
The managing principal of Ridire Research is affiliated with a private investment fund that holds long positions in the securities discussed herein (VAL US, TDW US) which could influence the views expressed. This publication is for educational and informational purposes only. Any performance referenced is illustrative and tracked on a per-article basis, not as part of a model portfolio or investment program. Nothing herein constitutes investment advice, a recommendation, or a solicitation. → Ridire Research Substack Disclaimer
In our Tidewater ($TDW) piece, we wrote that “the long-anticipated offshore recovery is transitioning from early-cycle to mid-cycle,” driven by rising subsea activity, FPSO deployment, and multi-year production contracts.
That part of the thesis has played out.
Rigs are working, utilization is high, and dayrates have reset materially above trough levels.
The harder question now is cash. Can the operators finally convert the recovery in activity into durable free cash flow?
Valaris ($VAL) is one of the more interesting ways to play that next stage.
We’re trying a different format this time:
The visual brief below is the compressed version, designed to be consumed quickly.
The full report at the end of this article goes deeper on Valaris’s operating-day recovery, cash conversion, ARO economics, and the implications of the Transocean merger.
If you would like to read the full 11 page report with more details you may download it for free below:
