Oil & Gas Drilling EPS Estimates Down 74.4%, Transocean at 13.7x EV/EBITDA
The Zacks oil and gas drilling industry carries a bearish earnings outlook with aggregate 2026 EPS estimates down 74.4% and a #158 rank out of 243. Transocean Ltd trades at a trailing EV/EBITDA of 13.7x and could benefit from rising natural gas demand and expanding international drilling contracts.
1. Mixed Industry Outlook
Global oversupply and strict capital discipline have kept crude prices subdued, limiting new rig contracts and driving volatility in offshore drilling names like Transocean Ltd.
2. Significant EPS Estimate Revisions
Aggregate earnings estimates for the drilling industry have plunged, with 2026 EPS projections down 74.4% year-over-year and 2027 forecasts cut by 54.6%, reflecting analyst pessimism.
3. Transocean Valuation Metrics
Transocean Ltd currently trades at a trailing EV/EBITDA multiple of 13.7x, below the S&P 500’s 17.9x, underscoring its relative valuation appeal in a debt-intensive sector.
4. Growth Catalysts
Structural growth in natural gas demand, driven by LNG exports and AI-driven power use, alongside multiyear international contracts in the Middle East and Latin America, could support future drilling activity.