Simmons & Company Sees Ensco plc (ESV) and Rowan Cos. (RDC) as Compelling Combo

Simmons & Company analyst, Ian Macpherson, believes that Ensco plc (NYSE: ESV) and Rowan Cos. (NYSE: RDC) have laid forth a straightforward and compelling combination which was reflected equally in the initial assessment of the market. This combination addresses the needs of the offshore drilling industry has for competitive and cost structure rationalization.

Modeling these companies is inherently imprecise at this point in the cycle, but relative to pre-existing estimates, Simmons & Company gets to ~15% accretion based on the $150M annualized synergy target.

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