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.
Tuesday, April 8, 2008