The Money Tree

Safely Generating Income in Retirement

Update – ESV NP Trade

Posted by mounddweller on June 1, 2010

All,

I need to issue a retraction regarding some of my comments in my earlier post on my new ESV trade.  Please note:

ESV has 2 deepwater rigs currently operating in the Gulf of Mexico.

This is what happens when you are in a hurry and don’t take time to verify information you’ve read elsewhere.  I read an article earlier today on SeekingAlpha that said ENSCO’s latest Fleet Status Report dated 5/14/2010 indicated that they did not have any deepwater rigs operating in the gulf.  If I had done two more minutes worth of DD I would have found that the information on SeekingAlpha was not correct.

ENSCO, in fact, has 2 deepwater rigs operating in the gulf, the ENSCO 8500 and 8501.  In addition, their newest deepwater rig, the ENSCO 8502, is currently under contract to begin operations in the gulf in August 2010.  Below is a link to the latest ENSCO Fleet Status Report dated 5/14/2010.

http://www.enscoplc.com/UploadFiles/File/05-14-10%208K%20Rig%20Status(1).pdf

I apologize for any confusion this may have caused.  In addition, I want to thank one of my readers, “dealmakr”,  for bringing this to my attention.  I encourage you to read his thoughts on ENSCO.  They are posted as a comment to my original ESV post.

Finally, I’ll close by reiterating that I’m still comfortable with my ESV trade.  As I mentioned in my original post, they have a rock solid balance sheet and strong growth opportunities.  If I have the stock put to me at $30 I will not be upset.

Regards,

Troy

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