Ensco's Jack Up Rig Lands 5-Month Contract in North Sea
UK-based offshore driller Ensco plcESV has been awarded a contract for its Ensco 122 jack-up drilling rig in the Dutch sector of the North Sea, as per sources.
Per VesselsValue, Dutch national oil company, NAM, will utilize the rig on a five-month drilling contract beginning Oct 1 and terminating on Feb 28, 2018.
The contracted dayrate is believed to be about $100,000 corresponding to a total value of around $15 million.
Built by Keppel in 2014, the Ensco 122 is currently working for Ithaca in the UK sector of the North Sea on the Harrier development. According to Ensco's latest fleet status report, the rig is anticipated to complete the contract in August.
Upon delivery, Ensco 122's first contract was with NAM back in 2014. Under the guidelines of the original contract, the rig had been used for drilling in the Dutch and UK sector of the North Sea starting in the fourth quarter of 2014 until the fourth quarter of 2016, at a dayrate in low $230.000 range.
Ensco is a leading supplier of offshore contract drilling services to the oil and gas industry. The company intends to purchase smaller rival, Atwood Oceanics, for about $839 million in an all-stock transaction. This move would bring together two leading offshore drillers with premium assets, which has the capability to cover the world's most prolific basins. Apart from the deal's compelling strategic rationale, the aforementioned companies expect to come up with cost synergies of $110 million over 2 years.
Ensco's price chart is unimpressive. Shares of the company lost 38.6% over the last three months, while the Zacks categorized Oil & Gas - Drilling industry declined 28.1% in the same time span.
Ensco currently has a Zacks Rank #3 (Hold). Some better-ranked stocks from the same space include Delek US Holdings, Inc. DK , Enbridge Energy, L.P. EEP and Canadian Natural Resources Limited Ltd. CNQ , each sporting a Zacks Rank #1 (Strong Buy). You can see the complete list of today's Zacks #1 Rank stocks here .
Delek US Holdings delivered a positive earnings surprise of 148.48% in the preceding quarter. The company beat estimates in each of the trailing four quarters, with an average positive earnings surprise of 60.68%.
Enbridge Energy delivered a positive earnings surprise of 128.57% in the preceding quarter. The company beat estimates in three of the trailing four quarters, with an average positive earnings surprise of 38.22%.
Canadian Natural Resources delivered a positive earnings surprise of 30.77% in the preceding quarter. It surpassed estimates in two of the trailing four quarters, with an average negative earnings surprise of 275.46%.
Today's Stocks from Zacks' Hottest Strategies
And this outperformance has not just been a recent phenomenon. Over the years it has been remarkably consistent. From 2000 - Q1 2017, the composite yearly average gain for these strategies has beaten the market more than 11X over. Maybe even more remarkable is the fact that we're willing to share their latest stocks with you without cost or obligation. See Them 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
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.