Oil and natural gas driller
) reported diluted first-quarter 2014 earnings of $1.31 a share
(excluding onetime items), which surpassed the Zacks Consensus
Estimate of $1.21. Significant improvement in Floaters' average
dayrates aided the results.
However, the earnings decreased 3.7% from $1.36 earned in the
year-earlier quarter, owing to reduced rig utilization along with
increased contract drilling expenses.
Total revenue grew 3.2% to $1,187.0 million from $1,149.9 million
generated in the year-ago quarter. On the flip side, total
revenue missed the Zacks Consensus Estimate of $1,193.0
Revenues rose 3.0% to $740.5 million in the reported quarter from
the year-earlier level of $719.2 million. The improvement was
mainly backed by the commencement of initial contract for ENSCO
Rig utilization in this segment dropped to 68% from 83% in the
year-earlier quarter. However, dayrate increased to $446,801 from
$379,801 a year ago.
Revenues at the Jackup fleet jumped to $429.9 million from $410.5
million in the prior-year quarter. The average dayrate improved
11.7% to $130,934 from $117,268. Overall jackup utilization fell
to 84% from 88% in the year-earlier quarter.
Revenues came in at $16.6 million, down 18.0% from $20.2 million
in the first quarter of 2013.
Costs and Expenses
Depreciation expenses grew 7.4%, contract drilling expenses rose
7.8%, while general and administrative expenses increased 0.8% on
a year-over-year basis.
Balance Sheet and Capex
At the end of the first quarter of 2014, Ensco had $122.5 million
in cash. Long-term debt stood at $4,703.7 million, with a
debt-to-capitalization ratio of 26.9% (compared with 27.0% in the
With the completion of the construction phase of six additional
rigs − scheduled to be delivered by the end of 2014 − Ensco is
expected to achieve significant growth. During 2013, Ensco
received the delivery of three ultra-deepwater drillships and the
ultra-premium jackup ENSCO 120. Ensco has a $10 billion contract
revenue backlog, excluding bonus opportunities. The company's
solid backlog position provides it with excellent cash flow
visibility. Additionally, an impressive balance sheet and
sufficient liquidity will help it address operational and
Ensco carries a Zacks Rank #3 (Hold), implying that it is
expected to perform in line with the broader U.S equity market
over the next one to three months.
Meanwhile, one can look at better-ranked players in the energy
Boardwalk Pipeline Partners LP
Matrix Service Company
Helmerich & Payne Inc.
). All the stocks sport a Zacks Rank #1 (Strong Buy).
BOARDWALK PIPLN (BWP): Free Stock Analysis
ENSCO PLC (ESV): Free Stock Analysis Report
HELMERICH&PAYNE (HP): Free Stock Analysis
MATRIX SERVICE (MTRX): Free Stock Analysis
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