Is offshore HY debt dead?

Two and a half HY picks for energy investors

The capital cycle remains undefeated. Capital starvation leads to deficit and rising prices, and then higher prices lead to increased capex, which leads to a supply glut and depressed prices. Drink, rinse, repeat.

Offshore oil services are an illustrious case. Since its peak more than ten years ago, the industry has been abandoned. The US shale boom combined with green cultism crushed the segment. However, things are changing.

US shale production is exhausting, and the offshore has become hot again. The green transition is not as smooth as promised, so “dirty” energy made its comeback. What does this mean for offshore oil services investors?

The industry offers everything we need: liquid equity, attractive options, and lucrative bonds. This is the first Beyond Equity report for Pro Members. It covers offshore HY credit. To be more precise, the focus is jack-up operators.

A side note: the offshore industry is far from homogenous. The three main categories are jack-ups, semi-submersibles, a…