Ensco completed a surprise secondary, sending the stock down sharply.
The offshore driller continues to easily surpass estimates due to strong operations during the severe downturn.
The company has improved the balance sheet after completing a below-market debt offering making the stock trading far below book value appealing to new investors.
In an interesting move, Ensco (NYSE:ESV) placed a secondary offering to raise cash to cover corporate needs during this downturn in offshore drilling. The offering is somewhat peculiar considering analysts forecast the company remaining profitable even in 2017, but the news follows a similar amount spent to repurchase debt at a large discount.