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Gold/Mining/Energy : Ensco International Inc. (ESV) -- Ignore unavailable to you. Want to Upgrade?

To: Gottfried who wrote (1450)	8/29/1998 1:15:00 AM
From: Douglas V. Fant	Read Replies (1) \| Respond to of 2005

Gottfried, OK Here is why ESV is a decent value play. ENSCO has 36 jackup rigs, 10 barge rigs,and 8 platform rigs. If you assign a value of $20mm rig to the jackup rigs (about 35% of current market value), and for sheer laziness $0 value to the marine vessels, and say $15mm to the remaining platform and barge rigs, you realize $735mm in value. Also I assume a $25mm salvage value for the deepwater rig under construction. Now ENSCOhas $525mm in current assets. Deduct $390mm in long term debt outstanding leaves $135mm. Now add $25mm, $135mm and $735mm together, and I do a quick and dirty figure on a salvage value for ESV of $895mm. Divide $895mm by the 181mm shares outstanding, and you get a salvage value of about $4.95/share. So ESV is currently selling for about 2.1 times its lowball salvage value.... Sincerely, Doug F.