Transocean's Plunge Offers Upside As Its Big Merger Nears

Transocean remains a 'buy' despite Q3 revenue and EPS misses, supported by backlog growth and deleveraging from the Valaris merger. RIG's average daily revenue per rig improved, driven by harsh environment floaters, while combined backlog with VAL reached $12.7 billion. Net debt declined to $4.23 billion, and the merger is expected to further reduce leverage, enhancing long-term survivability.