Diamond Offshore Surveying 8 Rigs In 2011

Sterne Agee has published a research report on Diamond Offshore Drilling

as it crafts its weigh-in on 2012 EPS and adjusts estimates. In the report, Sterne Agee writes "4Q10 costs guidance of $380 – $390 million, largely due to deferred costs from 3Q10 guidance. Drilling costs came in at $349 million, flat with the prior quarter and below the $380 – $390 million guidance. Delayed survey work on the Spur and Winner accounted for $14 million, delayed startups in Brazil for the Valor and Baroness, the cold stacking of the New Era and Voyager accounted for $9 million, and $12 – $15 million was due to ongoing cost control efforts." Sterne Agee maintains its Neutral rating on Diamond Offshore Drilling, which closed yesterday at $68.63.