Ensco International - Competitor Review
- Ensco International research report written 11/13/2007
- Risk Detail
- Possible Upside
- Competitor Review
- Valuation and Assessment
- Management & Performance Targets
Diamond Offshore - 43 rigs total (30 semisub, 13 jackup, 1 drillship)
- Pros
- 10 deepwater rigs - 2nd in industry
- One of the better-run companies - high margins
- Owned by Loews & Tisch family
- PBR accounts for 10% rev, Anadarko 11%
- Good margins relative to peer group
- Cons
- Avg age of fleet: 28 years (industry avg for jackups - 25 yrs)
- CEO James Tisch ' both DO & Loews
- Only 43% of revenues outside US
- 22% revenues from 2 customers
Noble Corp - $14B Cap. / 63 total rigs (13 semisub, 3 drillships, 44 jackup, 3 submersibles)
- Pros
- 85% of fleet deployed internationally, accounting for 72% of revenues
- PEMEX 12% revenues
- Proprietary EVA-4000 semisubmersible conversion program allows for lower cost and faster conversion to deepwater rigs
- Some of the strongest margins in the biz
- Good employee retention
- $7B backlog
- Cons
- Smallish deepwater component
- Executive suite issues - CEO resigned in September after less than year
Rowan Co. - $4B Cap. / 51 total rigs (17 cantilever jackups, 4 reg. jackups, 3 jackups under construction & 27 land rigs)
- Pros
- Premium jackup fleet, many of which are suitable for extreme conditions
- Manufacturing segment - 29% rev / 8% oper income allows them to build their own rigs
- Higher yield than most drillers (~1% annual)
- Cons
- No deepwater component
- Lower margins & rates due to no deepwater and their land rigs
Transocean - proposed merger with GlobalSantaFe will create largest offshore driller in the world
- Pros
- Almost 40 deepwater rigs
- Will have some pricing power due to size and industry positioning
- Cons
- Very well-known story
DISCLOSURE: Please see our portfolio page for all disclosures
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