Oil and natural gas driller,
) remains steadfast in its focus on enhancing shareholder value.
The company recently announced the authorization of a $2 billion
shares repurchase program of the Class A ordinary shares and a
regular dividend payment.
EPL OIL&GAS INC (EPL): Free Stock Analysis
ENERPLUS CORP (ERF): Free Stock Analysis
ENSCO PLC (ESV): Free Stock Analysis Report
ULTRAPAR PA-ADR (UGP): Free Stock Analysis
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This authorization replaces a previous share purchase agreement
that expired with the last year's conversion of Ensco's American
Depository Shares to Class A ordinary shares. Alongside, the
company announced a regular quarterly dividend payment of 50
cents per Class A ordinary share. The dividend is payable on Jun
21, 2013 to holders of shares as of Jun 10.
Going forward, Ensco's impressive balance sheet and sufficient
liquidity will likely help it to address any operational or
corporate need. With a current dividend yield of 3.2%, we believe
Ensco remains well positioned to comfortably increase its
dividend in the future amid a manageable debt position.
At the end of the first quarter, Ensco had $561.8 million in
cash. Long-term debt (inclusive of current maturities) was
$4,830.8 million, with a debt-to-capitalization ratio of 28.6%
(compared with 29.0% in the preceding quarter).
Ensco − a leading supplier of offshore contract drilling services
to the oil and gas industry − remains well positioned to improve
its earnings and revenues in the foreseeable future, as well as
benefit from a recovery in oil-directed drilling.
Ensco will continue to see tightness in the jackup markets as
well around the world through 2013. The jackup market is
experiencing a series of attractive awards and has possibly a
stronger outlook than even the floater market. Almost every
region is anticipated to have weak rig availability this year and
in the next.
With the completion of the construction phase of its 6 additional
rigs − scheduled to be delivered by the end of 2014 − Ensco is
expected to achieve significant growth. Ensco has $12 billion
contract revenue backlog, excluding bonus opportunities. The
company's solid backlog position provides it with excellent cash
The company retains a Zacks Rank #3 (short-term Hold rating).
However, there are certain Zacks Ranked #1 stocks -
Ultrapar Holdings Inc.
EPL Oil & Gas, Inc.
) - that appear more rewarding in the short term.