This Energy Stock Is Rocketing. Its Chairman Just Bought Shares.

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Transocean driller in the Gulf of Mexico.

Derrick E. Hingle/Bloomberg

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Transocean stock has been on a tear, where many investors would consider taking some money off the table. But Chairman Chad Deaton bought more shares of the offshore-drilling company on the open market.

Transocean stock (ticker: RIG) is up 65% in 2022, compared to a 19% decline in the S&P 500 Index,
So far in 2023, shares are up 46% while the index has gained about 1%.

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“Our industry outlook is positive based on several fundamental factors,” Transocean said in its annual report. filed in late February, It cited higher demand and dwindling global supplies of hydrocarbons and noted that the Russian invasion of Ukraine, and related economic sanctions, have helped propel oil prices, the company said.

As of 9 February, Transocean’s contract backlog stood at $8.54 billion, up from $7.27 billion as of 13 October. the company added.

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Deaton paid $222,000 on March 2 for 30,000 Transocean shares, each at an average price of $7.40. He now owns 141,000 Transocean shares. a form deaton filed With the Securities and Exchange Commission.

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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 its most recent previous open-market purchase. In November 2022, Dayton Paid $203,450 for 50,000 sharesThe average price of each is $4.07.

Deaton joined Transocean’s board in 2012, and has been chairman since 2019. He is more experienced than many directors in oilfield services, having served as CEO of Baker Hughes (BKR) from 2004 to 2012. Deaton oversaw Baker Hughes’ transformational acquisition of BJ Services in 2009.

Inside Scoop is a regular Barron’s feature that covers stock transactions by corporate executives and board members—so-called insiders—as well as large shareholders, politicians and other prominent figures. Because of their insider status, these investors are required to disclose stock trades with the Securities and Exchange Commission or other regulatory groups.

Write to Ed Lin at [email protected] and follow @Barron’sEdLin,

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