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Ensco (ESV) CFO to Retire, Jon Baksht Named Replacement

Oil and natural gas driller, Ensco plcESV announced that its executive vice president cum chief financial officer (CFO) Jay Swent is about to retire. The company veteran with an 11-year stint will continue to hold on the posts till the year end.

Ensco has nominated Jon Baksht as the replacement chief financial officer. He will be based in London. Baksht holds an MBA from the Kellogg School of Management at Northwestern University and a BS in electrical engineering from the University of Texas.

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. It is also likely to benefit from any recovery in oil-directed drilling.

Having transformed from a Gulf of Mexico (GoM) company to a relatively pure international play, Ensco should be well positioned to improve its earnings and revenues in the foreseeable future, as well as benefit from a recovery in oil-directed drilling. However, the markets look weak for the near term. Nevertheless, Ensco's efforts should eventually be accretive to its earnings.

At the end of the third quarter, Ensco had $240.4 million in cash and cash equivalents. Long-term debt (including current maturities) was $5,903.3 million, with debt-to-capitalization ratio coming in at 39.6% (compared with 40.3% in the preceding quarter).

As crude continues to display bearish trends and revolves around the $41-a-barrel level, the top energy companies have resorted to spending cuts (particularly on the costly upstream projects) on the back of lower profit margins. This, in turn, means less work for drilling contractors like Ensco.

Ensco currently carries a Zacks Rank #3 (Hold). Some better-ranked stocks in the oil and gas sector are Energy Transfer Equity, L.P. ETE , Matrix Service Company MTRX and Seadrill Partners L.P SDLP . Each of these stocks sports a Zacks Rank #1 (Strong Buy) and would offer above-average returns to investors.

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ENSCO PLC (ESV): Free Stock Analysis Report

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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