Offshore profits have been growing rapidly since the Deepwater Horizon disaster in 2010. As the Gulf of Mexico continues to rebound, other areas around the globe are also demanding drilling services in water depths to 10,000 feet. The companies offering this service have been forced to grow quickly yet cautiously because safety has become a core competency of the industry leaders.
After some smaller competitors released well-received financial results for the first quarter of 2013, Ensco (NYSE:VAL) faced a situation where anything less than achieving expectations could signal weakness in a growing market. Thankfully for investors like myself, Ensco did not disappoint. Both jack-up and deepwater rigs provided year-over-year boosts to the top and bottom lines. Because of the intense demand, oil and natural gas producers were willing to pay higher day rates at higher levels of utilization. For more of my take on this stellar company and its industry, check out the video below.