Jefferies Has Buy Rating On ENSCO PLC (ESV)

Jefferies & Co. has a Buy rating on ENSCO PLC ESV. In a note sent to investors, Jefferies writes, "One of the more notable takeaways from the HERO and ESV fleet status reports were the multiple 6-month extensions issued by Chevron (CVX, $88.01, NC). Specifically, the Hercules 120 (120 ft. MC), the Hercules 173 (173 ft. MC), the Hercules 350 (350 ft. IC), the ENSCO 68 (400 ft. IC) and the ENSCO 82 (300 ft. IC) all received 6-month contracts from the operator, with rates modestly above prior levels. Although HERO received several other short term extensions and new contracts in the GOM, the CVX extensions drove the majority of their backlog increase to an average of 78 days versus 27 days last month." Shares of ESV closed at $51.20 yesterday, down 37 cents.