Ensco: Another Impressive Fleet Status - A Detailed Analysis

Jul. 21, 2017 2:28 PM ETValaris Limited (VAL)ATW26 Comments


  • Ensco fleet status as of July 20, 2017.
  • The fleet status today was really impressive, especially for the Jack-up segment. Backlog is $3.3 billion as of today.
  • ESV is a very volatile stock, and should be considered a good trading tool only, due to the uncertainty surrounding the oil prices at the moment, and the potential merger with Atwood.

Image: Jack-up Ensco 120

Ensco PLC (ESV)

Investment Thesis:

Ensco is one of my long-term offshore drillers, and I am confident the company will survive these tough headwinds. A simple look at the fleet status is very telling.

Recently Ensco announced that it wants to acquire Atwood Oceanics (ATW) and I am not totally convinced that the company paid the right price for ATW, especially if oil prices are not recovering fast to the $55 per barrel level. Please read my preceding article here.

ESV is a very volatile stock, and should be considered a good trading tool only, due to the uncertainty surrounding the oil prices at the moment, and the potential merger with Atwood.

I recommend ESV as a hold for the long-term. Yet, a cautious accumulation on any weakness at $5.20 or below for investors who own already an ESV holding, is a possible strategy.

Technically, ESV is showing a descending channel pattern with a potential re-test of the $5 after the stock failed to successfully break out the resistance line yesterday at around $5.80.

A descending channel or downtrend is the price action contained between two downward sloping parallel lines. It is short-term bearish trend as we can see in the chart below.

Fleet analysis:

Ensco fleet status as of July 20, 2017, [click here.]

1. Drillships

# Name



Water Depth Max

K feet



Day rate

K $





Ensco DS-4


10/12 8/17 - 8/19




1y option


Ensco DS-6


10/12 2/18

485 +102 amort.

Total: 587



2x1Y option


Ensco DS-7




8/17 - 10/17

Contract prepa.



Ivory Coast

1y option


Ensco DS-8




From 618 +14 amort.

Total: 632

This article was written by

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As an experienced investor, I will help you stay on task more efficiently.

I am a former test & measurement doctor engineer (geodetic metrology). I was interested in quantum metrology for a while.

I live mostly in Sweden with my loving wife.

I have also managed an old and broad private family Portfolio successfully -- now officially retired but still active -- and trade personally a medium-size portfolio for over 40 years.

“Logic will get you from A to B. Imagination will take you everywhere.” Einstein.

Note: I am not a financial advisor. All articles are my honest opinion. It is your responsibility to conduct your own due diligence before investing or trading.

Disclosure: I am/we are long ESV. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

Additional disclosure: I am trading ESV frequently now and hold a long-term position as well.

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