ENSCO Making Progress In The Gulf Of Mexico, Dahlman Reiterates Buy Rating & Price (ESV)

Dahlman Rose is out with a research report this morning on shares of ENSCO International Inc. ESV and reiterates its Buy rating and $52 price target on the shares. In the report, Dahlman highlights, "ENSCO disclosed the operator for one of its UDW rigs in the GoM has been re-issued a drilling permit. The news follows its fleet status report last week in which it disclosed force majeure notices for a total of 5 rigs in the region." "ENSCO reported 2Q10 EPS of $0.82, slightly ahead of the $0.81 consensus forecast. Contract drilling revenues and expenses were largely in line with guidance stated on the previous quarter's conference call, and overall the results contain few surprises. Management guided 3Q10 revenues up 2%, drilling expenses down 6% and a reduction in the tax rate to 15% from 16%. In all, we now expect 3Q10 EPS to be somewhat flat sequentially as we forecast $0.84." "Although news flow out of the GoM going forward may not reflect the same level of directional improvement as yesterday's disclosure, we believe ESV shares remain attractive and reiterate our Buy rating and $52 target, based on year-end NAV." Shares of Ensco are currently trading at $41.64, up 44 cents.