Contract driller Ensco (NYSE: ESV) boasts a fleet of seven ultra-deepwater drillships, 20 semisubmersible rigs and 49 premium jack-up rigs. The firm stands to thrive in the near term because it owns one of the youngest deepwater and ultra-deepwater fleets in the industry and has a number of deepwater and ultra-deepwater rigs available in 2012-13.

Ensco currently pay a quarterly dividend of $0.375 per share, equivalent to a yield of about 2.7 percent. Given the company’s strong contract coverage and exposure to rising day-rates, the firm could have the scope to hike its dividend. However, the stock’s primary upside catalyst remains potential fixtures for the company’s rigs that are available in 2012-13. Ensco rates a buy under 60 in the Growth Portfolio.

Read more…