$ESV TOSSES INVESTORS INTO THE FIRE, FILES 50 MILLION SHARE SECONDARY

Engulfed with losses Ensco just filed a 50 million share offering, in an effort to stay alive and to take advantage of the lemmings who’ve bid the stock up in recent weeks.

During the Feb lows, ESV touched down in the 8’s. Smart money says that after diluting investors to this degree, raising $500 million on a market cap of $2.4 billion, it’s heading back there in short order.

Double pleasure. ESV earnings.

Operating revenues expected to be $812-817 million ($788 mln Capital IQ Consensus), benefiting from estimated reported utilization between 64% and 66%, as compared to the low-60% range in our first quarter 2016 outlook disclosed on our February 25, 2016 conference call, and average day rates that declined by approximately 3% to 4%, as compared to a 7% to 8% decline in our prior disclosed outlook.
Contract drilling expense is anticipated to be between $361 million and $366 million, as compared to our prior disclosed outlook of $385 million to $390 million.

Expected capital expenditures for the year ended December 31, 2016 has been revised to $400 million.
As of March 31, 2016, our total debt, cash and cash equivalents and short-term investments are expected to be $5.9 billion, $1.1 billion and $295 million, respectively.