Transocean (NYSE:RIG) EPS Estimate Lowered on Fleet Status Report

while Transocean (NYSE:RIG) is positioned strong for growth in the deepwater exploration and development segment for the long term, in the short term they'll struggle, based on their recent fleet status report.

Barclays says, "We continue to believe Transocean is well positioned to benefit from anticipated growth in deepwater exploration and development activity over the next decade. Transocean has significant and growing deepwater exposure, substantial cash flow, and a leading global position in the offshore markets, in our view...We are reducing our 4Q and 2011 EPS estimates for Transocean to $0.95 (from $1.15), $6.75 (from $7.35) primarily reflecting the company's most recent fleet status report and increased downtime assumptions for midwater floaters and standard jackups. We are maintaining our 2012 EPS estimate of $7.20."

Barclays reiterates an "Overweight" rating on Transocean (RIG), which was trading at $77.19, down $1.65, or 2.09 percent, as of 2:34 PM EST. Barclays has a price target of $85 on Transocean.