Transocean Ltd. RIG posted adjusted loss of 30 cents a share in the first quarter of 2019, a penny wider than the Zacks Consensus Estimate. Lower-than-anticipated revenues from Harsh Environment floaters along with increasing costs led to the underperformance. Precisely, revenues from harsh environment floaters came in at $258 million, lagging the consensus estimate of $289 million.However, the bottom line improved from the year-ago period’s loss of 48 cents on robust contribution from Ultra-Deepwater floaters. The group contributed $476 million to Transocean’s revenues, ahead of the Zacks Consensus Estimate of $463 million. Higher dayrates and utilization helped too. The offshore drilling powerhouse generated total revenues of $754 million, in line with the Zacks Consensus Estimate but increased 13.6% from the prior-year figure of $664 million.Transocean Ltd. Price, Consensus and EPS Surprise Transocean Ltd. Price, Consensus and EPS Surprise | Transocean Ltd. QuoteSegmental Revenue Break-UpTransocean’s High-Specification floaters contributed about 97% to total contract drilling revenues, while Deepwater and Midwater floaters accounted for the remainder. In the quarter under review, revenues from Ultra-Deepwater and Harsh Environment floaters totaled $476 million (above the Zacks Consensus Estimate of $463 million) and $258 million (lower than our estimate of $289 million), respectively.Revenue efficiency in the quarter was 98%, reflecting an increase from both the fourth quarter and year-ago levels of 96% and 92%, respectively.Dayrates and UtilizationOn an encouraging note, average dayrate in the quarter under review rose to $306,500 from the year-ago level of $287,600, owing to the uptick in activity in the Asia Pacific and strength in harsh environment markets of Norway and Canada. Overall fleet utilization was 56% during the quarter, up from the utilization rate of 52% in the year-ago period.BacklogTransocean’s strong backlog, which was recorded at $12.1 billion as of Apr 17, reflects steady demand from customers. While it declined $400 million from the year-ago period, it’s still the highest in the industry. During the first quarter, the company added more than $370 million to its backlog, chiefly attributable two new award from Brazilian energy major Petrobras PBR.CostsTransocean’s operating and maintenance expenses rose 29.8% year over year to $508 million. Depreciation costs also increased to $217 million from $202 million in the year-ago quarter. With costs rising, the company reported negative cash flow from operating activities to the tune of $51 million.Capital Expenditure & Balance SheetTransocean spent $52 million on capital expenditure in the first quarter of 2019. It had cash and cash equivalents of $1.9 billion as of Mar 31, 2019. Long-term debt of the company was $9.1 billion, with a debt-to-capitalization ratio of 41.2% as of the same date.GuidanceFor the second quarter, the company guided toward operating and maintenance expenses of $545 million. Capital spending is likely to be around $123 million (including $70 million on under-construction newbuilds). Finally, Transocean sees revenue efficiency at 95% in the second quarter.Zacks Rank & Key PicksTransocean holds a Zacks Rank #3 (Hold).Meanwhile, investors interested in the the energy space could look at some better options like ProPetro Holding Corp. PUMP and TransCanada Corporation TRP that sport a Zacks Rank #2 (Buy).The 2019 Zacks Consensus Estimate for Midland, TX-based ProPetro is $2.53, representing some 26.5% earnings per share growth over 2018. Next year’s average forecast is $2.80 pointing to another 10.5% growth.TransCanada has a 100% track of outperforming estimates over the last four quarters at an average rate of 14.8%.Will you retire a millionaire?One out of every six people retires a multimillionaire. Get smart tips you can do today to become one of them in a new Special Report, “7 Things You Can Do Now to Retire a Multimillionaire.”Click to get it free >>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 Petroleo Brasileiro S.A.- Petrobras (PBR): Free Stock Analysis Report Transocean Ltd. (RIG): Free Stock Analysis Report TransCanada Corporation (TRP): Free Stock Analysis Report ProPetro Holding Corp. (PUMP): Free Stock Analysis Report To read this article on Zacks.com click here. Zacks Investment Research