Transocean Ltd. RIG reported an adjusted net loss of 34 cents per share for fourth-quarter 2020, wider than the Zacks Consensus Estimate of a loss of 16 cents. The underperformance reflects lower utilization.However, Transocean’s bottom line improved from the year-ago adjusted loss of 43 cents due to impressive revenue efficiency and higher dayrates.The offshore drilling powerhouse’s total revenues of $690 million missed the Zacks Consensus Estimate of $707 million. Moreover, the top line fell 12.9% from the year-earlier figure of $792 million primarily due to reduced drilling activities.Segmental Revenue Break-UpTransocean’s Ultra-deepwater floaters contributed to 63.8% of total contract drilling revenues, while Harsh Environment floaters accounted for the remainder. In fourth-quarter 2020, revenues from Ultra-deepwater and Harsh Environment floaters totaled $440 million and $250 million, respectively, compared with the year-ago reported figures of $502 million and $278 million.Revenue efficiency was 97.2%, higher than 96.6% reported sequentially and the year-ago value of 96.2%.Dayrates and UtilizationAverage dayrates in the quarter rose to $347,500 from the year-ago level of $317,700. The company witnessed strong year-over-year average revenues per day from Harsh Environment floaters. Overall, fleet utilization was 58% in the quarter, down from the prior-year utilization rate of 61%.BacklogTransocean’s backlog record at $7.8 billion as of February reflects a decline of $2.4 billion from the year-ago figure.Transocean Ltd. Price, Consensus and EPS Surprise Transocean Ltd. price-consensus-eps-surprise-chart | Transocean Ltd. QuoteCosts, Capex & Balance SheetOperating and maintenance costs decreased to $465 million from $575 million a year ago. The company spent $47 million on capital investment in the fourth quarter. Cash provided by operating activities totaled $278 million. The company had cash and cash equivalents worth $1.15 billion as of Dec 31, 2020. Long-term debt was $7.30 billion, with debt-to-capitalization of 40% as of the same date, declining from the sequential quarter’s 40.6%.GuidanceFor 2021, Transocean projects adjusted contract drilling revenues of $2.7 billion. Notably, the company expects operations and maintenance expenses of $1.6 billion for 2021, while G&A expenses are expected to be $160 million.Meanwhile, capital spending for 2021, comprising capitalized interest, is estimated to be $1.3 billion. The amount also assumes $1.2 billion for the newbuild drillships under construction and the remaining $100 billion for maintenance.For the first quarter of 2021, this offshore drilling contractor expects adjusted contract drilling revenues of $680 million, with first-quarter operations and maintenance expenses of $445 million. Notably, its G&A expenses are expected to be $40 million, while capital expenditure, including capitalized interest, is estimated to be $115 million.Zacks Rank & Stocks to ConsiderTransocean currently has a Zacks Rank #5 (Strong Sell).Some better-ranked players in the energy space are EOG Resources, Inc. EOG, ConocoPhillips COP and China Petroleum & Chemical Corporation SNP, each carrying a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.EOG’s bottom line for 2021 is expected to surge 213.8% year over year.ConocoPhillips’s bottom line for 2021 is expected to grow 14.8% year over year.China Petroleum’s bottom line for 2021 is expected to rise 10% year over year.More Stock News: This Is Bigger than the iPhone!It could become the mother of all technological revolutions. Apple sold a mere 1 billion iPhones in 10 years but a new breakthrough is expected to generate more than 77 billion devices by 2025, creating a $1.3 trillion market.Zacks has just released a Special Report that spotlights this fast-emerging phenomenon and 4 tickers for taking advantage of it. If you don't buy now, you may kick yourself in 2022.Click here for the 4 trades >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Transocean Ltd. (RIG): Get Free Report ConocoPhillips (COP): Get Free Report EOG Resources, Inc. (EOG): Get Free Report China Petroleum & Chemical Corporation (SNP): Free Stock Analysis Report To read this article on Zacks.com click here. Zacks Investment Research