Top 10 Oil and Gas Stocks To Buy According to Analysts

3. Transocean Ltd. (NYSE:RIG)

Average Analyst Price Target: $51.85

Upside Potential: 54.07%

Number of Hedge Fund Holders as of Q3: 30

Transocean Ltd. (NYSE:RIG) is a leading offshore drilling contractor, specializing in ultra-deepwater and harsh-environment operations. The company operates a global fleet of rigs, providing services to major oil and gas companies worldwide.

On September 10, Transocean Ltd. (NYSE:RIG) announced a notable contract award for its ultra-deepwater drillship, Deepwater Atlas. The $232 million contract, secured with bp (formerly British Petroleum), will support operations in the U.S. Gulf of Mexico. Scheduled to commence in Q2 2028, this project is expected to make a substantial contribution to the company’s backlog. Transocean Ltd. (NYSE:RIG) is also in discussions to merge with Seadrill Limited, aiming to leverage the anticipated rebound in oil and gas exploration. This merger is expected to bolster Transocean’s competitive position and improve operational efficiency.

In its third-quarter 2024 financial results, Transocean Ltd. (NYSE:RIG) reported an adjusted EBITDA of $342 million, alongside contract drilling revenues of $948 million. The company achieved a 36% EBITDA margin, with near-full fleet utilization projected for the year. Transocean’s total backlog increased by 7.5% to $9.3 billion, reflecting strong future business commitments. While the company recorded a net loss of $494 million for the quarter, CEO Jeremy Thigpen highlighted operational discipline, ongoing negotiations for future projects, and a potential return to shareholder distributions by late 2026 as key areas of optimism.