The Conference Board's Consumer Confidence Index Declines to 60.8 in May

- The Conference Board's Consumer Confidence Index Declines to 60.8 in May



May 31, 2011

The Conference Board's consumer confidence index decreased to 60.8 in May, down from 66.0 in April. Economists had expected an increase to 67.5 for May.

The present situation index declined to 39.3 from 40.2, and the index for future expectations declined to 75.2 from 83.2 last month.

The cutoff date for these preliminary results for the month was May 18, 2011.

Lynn Franco, Director of The Conference Board Consumer Research Center commented: "A more pessimistic outlook is the primary reason for this month's decline in consumer confidence. Consumers are considerably more apprehensive about future business and labor market conditions as well as their income prospects. Inflation concerns, which had eased last month, have picked up once again. On the other hand, consumers' assessment of current conditions declined only modestly, suggesting no significant pickup or deterioration in the pace of growth."

The proportion of consumers expected business conditions to improve over the next six months declined to 17% form 19.2%, with those expected conditions to worsen increased to 15.5% from April's 14.0%.

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Unemployment Rates Decrease in Odessa, Midland

- Unemployment Rates Decrease in Odessa, Midland

Tuesday, May 24, 2011
Odessa American, Texas
by Jon Vanderlaan

The unemployment rate in the Permian Basin continued to fall last month as oilfield and service jobs have seen yet more increases in employees.

Willie Taylor, the executive director of the Permian Basin Texas Workforce Development Board, said as long as the oil and gas industry stays strong, the unemployment numbers will continue to drop.

"We don't want to use the 'boom' word right now, but our market is really great," he said.

Employment in the goods producing industry in Odessa, including mining (which includes oil) and manufacturing, increased by 1,300 jobs from April 2010 to April 2011, with service providing employment rising by 1,400 jobs.

Midland numbers reflect a similar increase with 1,200 service providing jobs added and 1,500 goods producing jobs added.

Taylor said as long as the oil and gas industry continues to do well, the unemployment rate will continue to lower. Forecasters predict the good market in those industries could last another three years, he said.

"We will continue to see (unemployment rates) drop as long as we got people coming in and going into the job market," he said. "We're looking at a strong economy and it's going to be around for quite some time."

Unemployment in the Odessa metropolitan statistical area dropped to 6.1 percent in April after a 6.3 percent unemployment rate in March. There was a 7.9 percent unemployment rate in April 2010.

The number of those employed has increased more than the 1,000 people that joined the workforce in Odessa, growing 2,350 from April 2010 to April 2011.The number of unemployed dropped by almost 1,300 people in the area to 4,466 people.

The Midland metropolitan statistical area saw a drop in unemployment during the past year from 5.3 percent to 4.4 percent, retaining its grip on the state's lowest unemployment for cities.

The Midland area had 2,221 people join the employment ranks from April 2010 to the same time this year to bring the total up to 75,202 people. The number of unemployed in the area dropped from 4,055 to 3,441, despite an increase of almost 1,600 people in the workforce.

The Texas Workforce Commission said Friday the state added 32,900 jobs, the seventh consecutive month of job growth in Texas.

The jobless rate dropped to 8.0 percent from 8.1 percent in March and 8.2 percent a year ago. The Texas unemployment rate remained well below the national rate of 9.0 percent.

The unemployment rate fell last month in more than three-quarters of nation's states, evidence that companies are feeling more confident in the U.S. economy.

The Labor Department said Friday that the unemployment rate dropped in 39 states in April. That's an improvement from March when 34 states had reported decreases. The rate rose in three states and the District of Columbia. It was unchanged in eight states.


Copyright (c) 2011, Odessa American, Texas

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Ensco Sees Decrease in 1Q11 Profits

Ensco Sees Decrease in 1Q11 Profits

Thursday, April 21, 2011
Ensco plc

Ensco reported diluted earnings per share from continuing operations of $0.45 for first quarter 2011, compared to $1.12 per share in first quarter 2010. There were no discontinued operations in first quarter 2011. Earnings from discontinued operations in first quarter 2010 were $0.21 per share that included a $34 million pre-tax gain from the sale of two jackup rigs. Diluted earnings per share were $0.45 in first quarter 2011, compared to $1.33 per share in first quarter 2010.

Chairman, President and Chief Executive Officer Dan Rabun stated, "Our planned acquisition of Pride International is on track and we look forward to realizing the benefits of the combination for customers, employees and shareholders. We successfully completed our debt offering to fund the cash portion of the acquisition and have commenced integration planning to ensure a smooth transition."

Mr. Rabun added, "During the quarter we were honored to be ranked first among offshore drilling contractors in total customer satisfaction by EnergyPoint Research, an independent research firm that measures customer satisfaction in the global oilfield. We earned top scores in eleven separate categories. This recognition validates the commitment of our employees who serve our customers around the world each and every day."

Chief Operating Officer Bill Chadwick commented, "Ensco has a long-established strategy of high-grading our fleet by investing in new equipment. During the first quarter, we ordered two ultra-premium harsh environment jackups and secured options for two additional rigs of the same design with similar terms. The new jackup rigs will be capable of operating in water depths up to 400' and their unique design will significantly increase the area of operability in the Central North Sea and other harsh environment regions."

Mr. Chadwick added, "ENSCO 8503 successfully commenced drilling operations in French Guiana with Tullow under a sublet agreement and we contracted ENSCO 7500 with Petrobras in Brazil. Our rig crews in the U.S. Gulf of Mexico are performing extremely well and ENSCO 8501 has commenced operations under the first post-moratoria new deepwater well permit approved by regulators."

Revenues in first quarter 2011 were $362 million, compared to $449 million a year ago. Jackup segment revenues decreased $55 million and deepwater segment revenues declined $32 million.

Total operating expenses in first quarter 2011 increased 10% to $281 million, from $255 million last year. Contract drilling expense grew 5%. Depreciation expense rose by 15% driven by growth in the deepwater segment. General and administrative expense was $30 million, compared to $21 million in first quarter 2010, primarily due to increases in professional fees related to the Pride International acquisition.

Segment Highlights

Deepwater

Deepwater segment revenues were $98 million in first quarter 2011, down from $130 million a year ago. Revenue for ENSCO 7500 declined year to year since the rig was in a shipyard during first quarter 2011, but operated during first quarter 2010. This revenue decline was partially offset by the addition of new ultra-deepwater rigs to the fleet. In first quarter 2011, the average day rate was $304,000 and utilization was 77%, down from $411,000 and 99%, respectively, a year ago.

Contract drilling expense was $41 million in first quarter 2011, down from $45 million in first quarter 2010. The decrease was primarily due to lower expenses for ENSCO 7500 while in the shipyard, offset in part by the addition of ENSCO 8502 and ENSCO 8503 to the fleet.

Total Jackup Segments

Revenues from the jackup fleet totaled $263 million in first quarter 2011, down from $318 million a year ago. The decline was primarily due to a seven percentage point decrease in utilization to 72% and a $15,000 decline in the average day rate to $97,000. Contract drilling expense increased 10% year to year, mostly due to the acquisition of ENSCO 109 in July 2010.