RDC - Ensco: Consolidation Reduces Risk
My investment thesis has remained consistently bullish on Ensco (ESV) due to an expected rebound in the offshore drilling market. A big plus to the thesis is the recent industry consolidation that will reduce a large portion of the major players in the sector. The merger with Rowan (RDC) is another big step in the process and keeps us bullish on Ensco despite the recent rally to yearly highs.
Image Source: Ensco/Rowan merger presentation
Consolidation Helps
Industry consolidation is undeniably positive. Fewer players will reduce competition for limited contracts in the