Update Regarding ENSCO DS-9 Drillship Contract
July 16 2015 - 04:31PM
Business Wire
Effective today, ConocoPhillips for its convenience provided a
notice of termination for the three-year ENSCO DS-9 drillship
contract. Under the terms of the contract, ConocoPhillips is
obligated to pay Ensco termination fees monthly for two years equal
to the operating day rate of approximately $550,000, which may be
partially defrayed should Ensco re-contract the rig within the next
two years and/or mitigate certain costs during this time period
while the rig is idle and without a contract. ConocoPhillips is
also contractually obligated to reimburse certain costs that Ensco
incurs due to the termination of the contract for ConocoPhillips’
convenience. Given these contract terms, Ensco does not anticipate
a material negative impact to its financial results for 2015 and
2016 as a result of this termination.
ENSCO DS-9 was recently delivered and had been scheduled to
commence its initial drilling contract for ConocoPhillips in the
fourth quarter of this year.
Ensco plc (NYSE: ESV) brings energy to the world as a global
provider of offshore drilling services to the petroleum industry.
For more than 27 years, the company has focused on operating safely
and going beyond customer expectations. Ensco is ranked first in
total customer satisfaction in the latest independent survey by
EnergyPoint Research — the fifth consecutive year that Ensco has
earned this distinction. Operating one of the newest
ultra-deepwater rig fleets and the largest premium jackup fleet,
Ensco has a major presence in the most strategic offshore basins
across six continents. Ensco plc is an English limited company
(England No. 7023598) with its registered office and corporate
headquarters located at 6 Chesterfield Gardens, London W1J 5BQ. To
learn more, visit our website at www.enscoplc.com.
Statements contained in this press release that are not
historical facts are forward-looking statements within the meaning
of Section 27A of the Securities Act of 1933 and Section 21E of the
Securities Exchange Act of 1934. Forward-looking statements include
words or phrases such as “anticipate,” “believe,” “estimate,”
“expect,” “intend,” “plan,” “project,” “could,” “may,” “might,”
“should,” “will” and similar words and specifically include
statements involving expected financial performance and results,
including the impact of the ENSCO DS-9 drillship contract
termination on our financial results, termination fees and the
reimbursement of those fees to us, re-contracting and/or reducing
costs of rigs whose contracts have been terminated for convenience,
day rates and backlog, estimated rig availability, and general
market, business and industry conditions, trends and outlook. Such
statements are subject to numerous risks, uncertainties and
assumptions that may cause actual results to vary materially from
those indicated, including commodity price fluctuations, customer
demand, new rig supply, downtime and other risks associated with
offshore rig operations, relocations, severe weather or hurricanes;
changes in worldwide rig supply and demand, competition and
technology; future levels of offshore drilling activity;
governmental action, civil unrest and political and economic
uncertainties; terrorism, piracy and military action; risks
inherent to shipyard rig construction, repair, maintenance or
enhancement; possible cancellation, suspension or termination of
drilling contracts as a result of mechanical difficulties,
performance, customer finances, the decline or the perceived risk
of a further decline in oil and/or natural gas prices, or other
reasons, including terminations for convenience (without cause);
the outcome of litigation, legal proceedings, investigations or
other claims or contract disputes; governmental regulatory,
legislative and permitting requirements affecting drilling
operations; our ability to attract and retain skilled personnel on
commercially reasonable terms; environmental or other liabilities,
risks or losses; debt restrictions that may limit our liquidity and
flexibility; our ability to realize the expected benefits from our
redomestication and actual contract commencement dates;
cybersecurity risks and threats; and the occurrence or threat of
epidemic or pandemic diseases or any governmental response to such
occurrence or threat. In addition to the numerous factors described
above, you should also carefully read and consider “Item 1A. Risk
Factors” in Part I and “Item 7. Management’s Discussion and
Analysis of Financial Condition and Results of Operations” in Part
II of our most recent annual report on Form 10-K, as updated in its
subsequent quarterly reports on Form 10-Q, which are available on
the SEC’s website at www.sec.gov or on
the Investor Relations section of our website at www.enscoplc.com. Each forward-looking statement
speaks only as of the date of the particular statement, and we
undertake no obligation to publicly update or revise any
forward-looking statements, except as required by law.
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version on businesswire.com: http://www.businesswire.com/news/home/20150716006543/en/
Ensco plcInvestor & Media ContactsSean P.
O'Neill, 713-430-4607Vice President – Investor Relations and
CommunicationsorNick Georgas, 713-430-4490Senior Manager – Investor
RelationsorThao Pham, 713-430-4658Manager – Communications
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