Ensco International (ESV) at Howard Weil

Ensco International

Company has an excellent track record meeting Wall Street expectations – 33 consecutive quarters.

ESV had best safety record in 2007 in company history working toward zero incidents per year.

Highest operating margin in industry – 65% in 2007.

ROCE – 28% in 2007.

Average age of fleet is 5.5 years – company is adjusting rig age for upgrades.

ESV is making a substantial investment in deepwater – all new builds are contracted or have a letter of intent. Revenue base of company shifting from Gulf of Mexico to international. ESV now has 9% of ultra deepwater market.

International markets will continue to be strong – believes that demand will absorb new builds - North Sea market still strong – expected collapse in gas prices there did not materialize.

Iran offshore – 12 rig shortage there.

ESV has 31 rigs in the international market;

North Sea – stable - 10 rigs.
Middle East – all under priced relative to market – will roll off and be priced higher - 9 rigs.
Of the 12 left, 8 are under long term contracts.

Gulf of Mexico – supply keeps shrinking – 79 in 2008 versus 156 in 2001.