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:ESV) 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.
Joel South has no position in any stocks mentioned. Taylor Muckerman owns shares of Ensco. The Motley Fool recommends Seadrill. The Motley Fool owns shares of Seadrill and Transocean. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.