With oil prices sky-high and not enough rigs available to drill for it, Transocean, the largest offshore contract driller in the world, can fetch great prices for its services and lock in those fees for at least a few years, Cramer said during Mad Money.
All but one of Transocean's deepwater rigs are contracted out until at least 2010, and a good number are committed until 2012. This gives the company, and investors, the earnings visibility that's so desperately needed in this unpredictable market.
And Cramer didn't seem too worried by the rigs that aren't booked through 2012. The GlobalSantaFe acquisition -- and that of Grant Prideco by National Oilwell Varco -- just means there's less competition in the industry. So Transocean can just keep on charging $500,000 a day for use of its rigs, and maybe even more, when it comes time to renegotiate those expiring contracts.
Transocean is "using high prices today to lock in great rates for tomorrow," Cramer said. "RIG has terrific visibility, and it is one of my favorite stocks here."
Jim's charitable trust owns Transocean.
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