Ensco: Good Dividend, Great Growth, Young Deep Sea Drilling Fleet

Most well services drillers drill for both natural gas and oil. Recently US natural gas prices have fallen through the floor. This makes it harder to invest in oil and gas drilling service companies. One wonders how much of a cut back in drilling the US natural gas price fall will cause. Ensco (ESV) is one of these well services drillers, but it is a deep sea driller. This kind of drilling is just starting to recover from the cut backs due to the Macondo well disaster. The prices of natural gas have been low relative to oil for some time. This means that most of the relatively expensive offshore drilling is for oil. Plus, only US natural gas prices have fallen through the floor. For example, Russian natural gas prices have been rising since June 2011 in direct opposition to the downtrend in US natural gas prices over the... Read more

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