Here's Why Helix Energy Solutions Group Inc's Stock Is Surging Today
Shares of Helix Energy Solutions Group (NYSE: HLX) jumped more than 11% by 2:30 p.m. EDT on Monday. Fueling the rise was a report in The Wall Street Journal, which said that the offshore service company had hired bankers and was "exploring strategic alternatives."
According to the report, Helix Energy Solutions is working with bankers on a potential sale. It has just started the process, which might not result in a transaction. One of the things that the Journal article noted was that consolidation in the industry is heating up because companies have identified the need for increased scale given the persistent weakness in oil prices. That's especially true in the offshore drilling sector, which has been hit even harder during the downturn because of the rise in drilling cheaper onshore shale wells. That's why several contract drillers have announced consolidation transactions this year, each focused on capturing expense synergies.
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Source: Fool.com
