Ensco PLC, released its second-quarter 2015 results on July 29, 2015. Revenues for Q2'15 were $1.06 billion with an EPS of $1.18. Decent quarter overall. Ensco Plc, is doing a good job at controlling costs during this very challenging market that may continue into 2015 with a potential tendering improvement in mid-2016 . ESV has a solid balance sheet and this downturn should be seen as an opportunity to buy and accumulate. Ensco Plc (NYSE:ESV) This article is an update of my preceding article on ESV on May 3, 2015 about the Q1'15 results. [I] Fleet Status as of July 16, 2015. (Updated on July 17, 2015.) 1. Drillships #Name Year Built Water Depth Max K feet Contract End Day rate K $LocationInfo 1 Ensco DS-119996/10Cold stacking preparation Angola 2 Ensco DS-3201010/126/16489 [BP] U.S. GOM 3 Ensco DS-4201010/12 8/15 Early termination Lump sum payment by BP [BP] US GOM 4 Ensco DS-5201110/127/16435 [Petrobras] US GOM Eligible for bonus 17% Plus Options 5Ensco DS-6201110/122/18 548 +102 for upgrade/amort. 380 (From 9/15 to ?) [BP] Angola (Customer has delivered notice to place rig on special standby rate of mid 380s beginning late Sep. 15.) 2x1Y option 6Ensco DS-7201310/12 11/16 585k +28 [Total] Angola 7Ensco DS-8201410/12 under constr.Q4'15-Q4'20 from $610k to $655k +15 (+ $26 million in mob.) [Total] Angola1 Y option 8Ensco DS-9201510/12 Q4 '15-Q4 '18 552 +30(mob.) Contract termination for convenience Available [ConocoPhillips] Thailand 2-year paid. 9Ensco DS-10201510/12 under constr. deferred by 18 months Q3 '15 Q1' 17 Available-- 2. Semi-Submersibles #Name Year Built Upg. Water Depth Max K feet Contract End Day rate K $LocationInfo. 1Ensco 850020088.5/1011/15312 [Anadarko /ENI] U.S. GOM 2Ensco 850120088.5/10 Cold-stacked 3Ensco 850220108.5/10 Cold-stacked 4Ensco 850320108.5/10 8/15 8/15-10/15 10/15-7/17 352 - 352 [Stone Energy] - U.S. GOM Upgrade and insp. in Q3 '15/Q4 '15 (60d) 5Ensco 850420118.5/10AvailableMalaysia 6Ensco 850520128.5/10 Available U.S. GOM 7Ensco 850620128.5/10 8/15215U.S. GOMRig to perform plug and abandon work mid Jul. 15 to mid Aug. 15. 8 Ensco 600120005.76/18 352 +20 amort.[Petrobras] Brazil 9Ensco 600220015.7 Upgrade shipyard 46d total (Q3'15) 7/18 165 362 (+23 amort.)[Petrobras] Brazil $165k/d rate:(46d) Q3 '15 +23K/d From 8/15 to 7/18 Bonus 15% possible 10Ensco 600320045.71/17312[Petrobras] Brazil Bonus possible 15% 11Ensco 600420045.710/16312[Petrobras] BrazilBonus possible 15% 12Ensco 500419821.5 1/17 298 +30 For mob. and upgrade [Mellitha] Mediterranee(5d)Q3'15 13Ensco 5005 1982 19971.5/1.7AvailableSingapore 14 Ensco 5006 1998 19997.5 5/18 472-505[Inpex] Australia Upgrade +206k/d amortized on contract duration 3. Jackups #Name Year Built Upg. Water Depth Max K feet Contract EndDay rateLocationInfo. 1Ensco 1412016Cap. 400'Under-constructionQ3 '16UAE- 2Ensco 1402016Cap. 400'Under-constructionQ2 '16UAE- 3Ensco 1232016Ultra-Premium Harsh Environment Water Depth Max: 400'Under-constructionQ2 '16Singapore- 4Ensco 1222014Ultra-Premium Harsh Environment Water Depth Max: 400' 11/16 232 +14 for mob. and upgrade [NAM] U.K.2x1Y priced option 5Ensco 1212013Ultra-Premium Harsh Environment Water Depth Max: 400'6/16 232 +11 [Wintershall] Holland1Y unpriced option 6Ensco 1202013Special Capabilities: High Specification, HPHT Capable Water Depth Max: 400'5/16 235 +13 until 11/15 [Nexen] U.K. 11x 1 well options 7Ensco 1102015Special Capabilities: High Specification, HPHT Capable Water Depth Max: 400' 5/18114 [NDC] UAE- 8Ensco 1092008Special Capabilities: High Specification, HPHT Capable Water Depth Max: 400' 1/18 172 +13 for mob. [Chevron] Angola 9Ensco 1082007High Specification, HPHT Capable Water Depth Max: 400'4/17162 [PTTEP] Thailand1Y option 10Ensco 1072006High Specification, HPHT Capable Water Depth Max: 400'Available New Zealand 11Ensco 1062005High Specification, HPHT Capable Water Depth Max: 400' 8/15 155(+5) [CPOC] Malaysia 2x90d options 12Ensco 105 2002 2010High Specification, HPHT Capable Water Depth Max: 400' AvailableSingapore 13Ensco 104 2002 2011High Specification, HPHT Capable Water Depth Max: 400' 8/18114 [NDC]UAE 14Ensco 1022002Heavy Duty, HPHT Capable Water Depth Max: 400' Available U.K. 15Ensco 1012000Heavy Duty, HPHT Capable Water Depth Max: 400' 12/15 12/15-6/16 218 155 [BP] U.K. 2x6 months unpriced option 16Ensco 100 1987 2009Heavy Duty, HPHT Capable Water Depth Max: 400' 6/18 185 [Premier] U.K. 17Ensco 99 1985 2005Special Capabilities: 30,000' Drilling Depth Rated Water Depth Max: 250' Cold-stacked-GOM 18Ensco 98 1977 2009Water Depth Max: 250' Under management Pemex 11/1592 Mexico PemexInsp. (14d) Q4 '15 19Ensco 97 1980 2005Water Depth Max: 250' 1/16 1/16 - 2/19 68 75 [Aramco] Saudi Arabia- 20Ensco 96 1982 2011Water Depth Max: 250' 1/16 1/16-1/16 1/16 - 2/19 68 75 120 [Aramco] Saudi Arabia- 21Ensco 94 1981 2008Water Depth Max: 250' 1/16 1/16-2/16 2/16 - 5/16 85 75 120 [Aramco] Saudi Arabia1Y priced option 22Ensco 93 1982 2009Water Depth Max: 250' Under management Pemex 7/15 Status unknown-available?92 Mexico Pemex 23Ensco 92 1982 1996Water Depth Max: 225' 1/16 1/16 - 8/18 112 To be mutually agreed [Conoco Phillips] U.K. 24Ensco 91 1980 2012Water Depth Max: 270' Cold-stackedBahrain 25Ensco 89 1982 2009Water Depth Max: 250' Under management Pemex 11/1592 Mexico Pemex 26Ensco 88 1982 2004Water Depth Max: 250' 1/16 1/16 - 11/16 85 110 [Aramco] Saudi Arabia1Y priced option 27Ensco 87 1982 2006Water Depth Max: 350' 9/15 75 [Castex] GOM 28Ensco 86 1981 2006Water Depth Max: 250'Available GOM 29Ensco 84 1981 2013Water Depth Max: 250' 1/16 1/16 - 3/19 75 125 [Aramco] Saudi ArabiaInsp.(18d) Q3 '15 30Ensco 83 1979 2009Water Depth Max: 250' Under management Pemex 10/1692 Mexico Pemex 31Ensco 82 1979 2003Water Depth Max: 300'Cold-stacked GOM 32Ensco 81 1979 2003Water Depth Max: 350'Cold-stacked GOM 33Ensco 80 1978 2011Water Depth Max: 225'4/17145 [GDF] U.K.opt. +Cost adj. and option 34Ensco 762000Special Capabilities: HPHT Capable Water Depth Max: 350' 1/16 1/16 - 12/18 125 172 [Aramco] Saudi Arabia 35Ensco 751999Water Depth Max: 400' 7/15 Status unknown, probably available. Private [Talos] GOMTerm amended in conjunction with Ensco 8503 36Ensco 72 1981 2012Water Depth Max: 225' 9/15 9/15 - 9/18 172 172[Maersk] Denmark 37Ensco 71 1982 2012Water Depth Max: 225' Available (7/18/15)Denmark 38Ensco 70 1981 1996Water Depth Max: 250'Available U.K. 39Ensco 68 1976 2004Water Depth Max: 400'10/15118 [Chevron] GOM Insp. (28d) Q3 '15 40Ensco 67 1976 2005Water Depth Max: 400'AvailableMalaysia 41Ensco 56 1982 2006Water Depth Max: 300' Cold stacking prep.Malaysia 42Ensco 54 1982 2004Water Depth Max: 300' 1/16 1/16 - 9/17 92 115 [Aramco] Saudi Arabia1Y priced option 43Ensco 53 1982 2008Water Depth Max: 300'2/16115 [NDC] UAE2x1Y unpriced option 44Ensco 52 1983 2013Water Depth Max: 300'8/1798[Murphy] Malaysia1Y unpriced option 4. Under Management #Name Year Built Water Depth Max K feet Contract EndDay rateLocation 1Thunder HorseDeepWater semi-sub1/16120 [BP] GOM 1Y opt. 2Mad DogDeepWater Spar Drilling Rig1/1665 [BP] GOM Held for Sale Ensco 7500Cold stackedSpain Ensco DS-2Cold stackedSpain Ensco 6000Cold stackedSpain Ensco 5002SOLD Ensco 5001Cold stackedMalaysia Ensco 90Cold stackedGOM Ensco 58Cold stackedBahrain Fleet Analysis as of July 15 TotalDrillshipsSemi-subsJackupsUnder management Under-construction5203- Total rigs including under-construction75914442 Cold-stacked/Warm-stacked/Available21 3513- Held for sale7142- * Now including the Ensco DS-4. [II] Second-quarter 2015 results snapshot: Q2 2015Q1 2015Q4 2014Q3 2014Q2 2014Contract drilling revenue in $ Billion1.0591.16391.15981.2611.203Contract drilling expense in $ million503518.3514.0531.4576.0Net Income in $ million262.7324.7391.0424.5366.0G&A in $ million29.730.128.32936Cash flow from operations $ million386.2467.7546--Cash on hand in $ million648.3887.8664.81,173.7145Long-term debt in $ Billion5.91135.91935.88565.90394.6791Non-cash impairment in $ Billion703,515.2n/an/aBacklog in $ Billion7.48.49.71111Earnings per share $1.181.381.681.831.58Average day rate $237,263243,902242,781239,233241,756Utilization76%86%86%89%85%Long-term debt to capital32%31%42%33%29%Shares outstanding (diluted) in million232.2231.9231.9232.0231.5Dividend $/share0.15/Q0.15/Q0.15/Q0.75/Q0.75/Q Rig Revenues and drilling expenses per segment. Q2 2015Q1 2015Q4 2014Q3 2014Q2 2014FloatersRevenues634.3695.0663.0745.3720.6Drilling expense277.7293.5293.4309.7330.3JackupsRevenues384.1428.3454.5499.0465.9Drilling expense192.7191.5186.3210.2234.0Managed drilling rigsRevenues40.640.642.316.916.5Cost32.2n/a34.311.511.5 Rig Utilization and average day rate per segment. Q2 2015Q1 2015Q4 2014Q3 2014Q2 2014FloatersUtilization76%86%81%82%77%Average day rate $417,463425,278428,734451,078479,176JackupsUtilization77%87%86%92%89%Average day rate $139,797144,139147,052139,997134,456 M. Carl Trowell, CEO, said in the conference call: As a reminder, we have no significant debt maturities until the second quarter of 2019. We've maintained our investment grade credit rating and we continue to have significant liquidity and capital management flexibility with $1.3 billion of cash and short-term investments on the balance sheet, fully available $2.25 billion revolving credit facility, and revenue backlog of about $7.4 billion. Ensco Plc delivered another strong quarter despite this terrible bear market. Revenues were $1.059 billion down 9.9% quarter over quarter with net income of $262.7 million or an EPS of $1.18. The 2Q'15 quarter was highlighted by few change in the fleet: Drillship DS-8 on track to commence operation later this year, which will be a major fiancial contributor.Drillship DS-9 contract termination with obligation to pay the day rate for 2-year at $550k/dDrillship DS-10 delayed to 2017 which will reduced 2015 CapEx to $1.7 billionThe Ensco 5002 has been sold for scrap valueSeveral contract in the Middle East with NDC.Ensco 8501 and Ensco 8502 cold stacked at $10k/d. One issue that it is still ongoing is regarding DS-5 drilling services contract from Petrobras and allegations of bribery for both VTG and ESV. I wrote an recent article regarding this particular situation. I do not believe it will be any problem, however, we will have to see... The company indicated that it may be an uptick in tendering activity for the jackups in general, and in the shallow drilling particularly, which is still economical at oil at $50. However, ESV is not optimistic for 2016 but see changes in 2017. Mr Carl Trowell said: I don't believe that we will see any increase in our customers' offshore budgets next year. And so, accordingly, we're going to see utilization and day rates still under pressure through 2016. Now that said, when we talk to customers, we do see a number of projects that have been pushed out that seemed to be scheduled for 2017 and we're tendering in the latter half of 2016. And we do see a little bit of evidence of customers coming and trying to take current pricing now for 2017 activity which maybe indicates where they feel things might go. And so, I think, it's going to be weak throughout the remainder of 2015 and 2016. And then, for a pickup in 2017, we need to see some key things happen on the macro environment. But certainly that's where a lot of the delayed work seems to be getting pushed out here. It is probable that we are at the bottom here in term of PPS and I do not see a terrible slide from these already depressed price. ESV is a survivor and will be here for many years to come. I believe it is a time to accumulate and take advantage of this discounted value. I personally added to my long position last week. ESV Chart More