ENSCO International Reports Record Second Quarter 2006 Results

Net income for the six months ended June 30, 2006 was $344.5million ($2.24 per diluted share) on revenues of $863.9 million,compared to net income of $107.0 million ($0.71 per diluted share) onrevenues of $456.9 million for the six months ended June 30, 2005.

The average day rate for ENSCO's operating jackup rig fleet forthe quarter ended June 30, 2006, increased by 75% to $114,300 comparedto $65,400 in the prior year quarter. Utilization of the Company'sjackup fleet increased to 97% in the most recent quarter, up from 88%in the quarter ended June 30, 2005.

The Company repurchased 845,000 shares of its common stock duringthe second quarter of 2006 at an average price of approximately $48per share as part of a $500 million share repurchase authorizationapproved by the Company's Board late in the first quarter of 2006.ENSCO has repurchased approximately 1.1 million shares at an averageprice of approximately $48 per share since commencement of theprogram.

Carl Thorne, Chairman and Chief Executive Officer of ENSCO,commented on the Company's current results and outlook: "We arepleased to announce our third consecutive record quarter in terms ofboth revenue and net income. The average day rate for our jackup fleetin the second quarter increased sequentially by 11% over the priorquarter consistent with our expectations, with a 12% improvement inthe Gulf of Mexico being the most significant.

"ENSCO 107, a jackup rig that suffered minor damage whilepreparing to drill on a location in Vietnam, is now in a shipyardundergoing repairs. A thorough inspection of the rig confirmed nosignificant damage to the legs or jacking system as the result of thepunch-through. Contract drilling expense for the second quarterincludes a $3.0 million provision for the estimated cost of repairs.Repairs are expected to be completed by the end of July, after whichthe rig will mobilize back to Vietnam to resume its contract. ENSCO107 will earn 75% of the full operating rate while out of service.

"As anticipated, with our fleet enhancement program now largelycomplete, we achieved higher average fleet utilization as evidenced bythe 97% utilization rate realized during the second quarter. We do,however, expect to incur approximately five months of shipyarddowntime starting in September 2006 on one of our 250' Gulf of Mexicojackup rigs, ENSCO 83, as we complete preparation of the rig forpossible international assignment.

"Our rig construction projects remain on schedule and withinbudget. Our new ultra-high specification jackup rig, ENSCO 108, isscheduled for delivery in the second quarter of 2007. The rig isalready committed for work in Southeast Asia following delivery. ENSCO8500 and ENSCO 8501, our two new ultra-deepwater semisubmersible rigs,are scheduled for delivery in the second quarter of 2008 and firstquarter of 2009, respectively. Both rigs are being built against firmmulti-year contracts.

"We remain committed to our management transition plan announcedearly this year. Bill Chadwick has assumed his role as Executive VicePresident and Chief Operating Officer, and is integrally involved inleading our worldwide operations. Dan Rabun has joined the Company asPresident and assumed a very active executive management role inENSCO. Dan will succeed me as Chief Executive Officer effectiveJanuary 1, 2007.

"We continue to remain confident with regard to our markets.Despite some recent moderation of jackup day rates in the Gulf ofMexico in anticipation of hurricane season, the average jackup dayrate for rigs in our North and South America business unit reached anall-time high in the second quarter. International markets remainstrong, and will likely continue to attract rigs from the Gulf ofMexico due to the term nature of these opportunities. We have, thisyear, already announced the mobilization of two of our Gulf of Mexicojackup rigs to Tunisia and the Middle East for term commitments.Two-thirds of our jackup fleet will be located internationally upondelivery of ENSCO 108 in 2007.

"We also remain positive with regard to our financial prospects.We currently expect to report sequentially improving quarters throughthe balance of this year and into 2007. Backlog continues to grow, andis now approaching $3 billion, up from $800 million early last year.We expect our cash generation to increase, enabling us to continue ourefforts toward fleet expansion, and to accelerate stock repurchases aswarranted."

Statements contained in this news release that state the Company'sor management's intentions, hopes, beliefs, expectations,anticipations or predictions of the future are forward-lookingstatements made pursuant to the Private Securities Litigation ReformAct of 1995. Such forward-looking statements include references totrends in day rates or utilization, future rig utilization, rig repaircompletion and contract commitments, the period of time and number ofrigs that will be in a shipyard, scheduled delivery dates for newrigs, market trends, expectations, outlook or conditions for thebalance of 2006 and into 2007, our expected increase in cashgeneration, and the possible acceleration of our stock repurchases. Itis important to note that the Company's actual results could differmaterially from those projected in such forward-looking statements.The factors that could cause actual results to differ materially fromthose in the forward-looking statements include the following: (i)industry conditions and competition, including changes in rig supplyand demand, (ii) cyclical nature of the industry, (iii) worldwideexpenditures for oil and gas drilling, (iv) operational risks,including hazards created by severe storms and hurricanes, (v) risksassociated with operating, rig building, rig repairing and rigenhancement in foreign jurisdictions, (vi) renegotiation,nullification, or breach of contracts with customers or other parties,(vii) changes in the dates the Company's rigs undergoing shipyardconstruction work, repairs or enhancement will enter a shipyard orreturn to service, (viii) risks inherent to shipyard rig construction,rig repair or rig enhancement, (ix) availability of transport vesselsto relocate rigs, (x) environmental or other liabilities, risks, orlosses including hurricane related equipment damage or loss in theU.S. Gulf of Mexico, that may arise in the future which are notcovered by insurance or indemnity in whole or in part, (xi) the impactof current and future laws and government regulation affecting the oiland gas industry in general and the Company's operations inparticular, as well as repeal or modification of same, (xii) politicaland economic uncertainty, (xiii) limited availability of economicinsurance coverage for certain perils such as hurricanes in the Gulfof Mexico, (xiv) self-imposed or regulatory limitations on jackup rigdrilling locations in the Gulf of Mexico during hurricane season, (xv)our availability to attract and retain skilled personnel, (xvi) excessrig availability resulting from the delivery of new drilling units,and (xvii) other risks described from time to time as Risk Factors andotherwise in the Company's SEC filings. Copies of such SEC filings maybe obtained at no charge by contacting the Company's investorrelations department at 214-397-3045 or by referring to the investorrelations section of the Company's website at http://www.enscous.com.

All information in this press release is as of July 25, 2006. TheCompany undertakes no duty to update any forward-looking statement, toconform the statement to actual results, or reflect changes in theCompany's expectations.

ENSCO, headquartered in Dallas, Texas, provides contract drillingservices to the global petroleum industry.

ENSCO will conduct a conference call at 10:00 a.m. CentralDaylight Time on Tuesday, July 25, 2006, to discuss its second quarterresults. The call will be broadcast live over the Internet atwww.enscous.com. Interested parties also may listen to the call bydialing (719) 457-2621. We recommend that participants call five toten minutes before the scheduled start time.

A replay of the conference call will be available on ENSCO's website www.enscous.com, or by phone for 24 hours after the call bydialing (719) 457-0820 (access code 4202026).
ENSCO INTERNATIONAL INCORPORATED
CONDENSED CONSOLIDATED STATEMENT OF INCOME
(In millions, except per share data)
(Unaudited)


Three Months Six Months
Ended Ended
June 30, June 30,
--------------- ---------------
2006 2005 2006 2005
------- ------- ------- -------

OPERATING REVENUES $478.8 $246.3 $863.9 $456.9

OPERATING EXPENSES
Contract drilling 148.5 110.6 278.5 219.2
Depreciation and amortization 44.4 38.1 86.8 74.7
General and administrative 10.5 7.8 20.9 15.8
------- ------- ------- -------
203.4 156.5 386.2 309.7
------- ------- ------- -------

OPERATING INCOME 275.4 89.8 477.7 147.2

OTHER INCOME (EXPENSE)
Interest income 2.7 1.8 5.0 2.9
Interest expense, net (4.9) (8.0) (9.1) (15.8)
Other, net (1.2) (2.0) (2.9) 1.8
------- ------- ------- -------
(3.4) (8.2) (7.0) (11.1)
------- ------- ------- -------

INCOME FROM CONTINUING OPERATIONS
BEFORE INCOME TAXES 272.0 81.6 470.7 136.1

PROVISION FOR INCOME TAXES 77.3 24.5 131.1 40.2
------- ------- ------- -------

INCOME FROM CONTINUING OPERATIONS 194.7 57.1 339.6 95.9

DISCONTINUED OPERATIONS, NET -- 10.6 4.3 11.1

CUMULATIVE EFFECT OF ACCOUNTING CHANGE,
NET -- -- 0.6 --
------- ------- ------- -------

NET INCOME $194.7 $67.7 $344.5 $107.0
======= ======= ======= =======


EARNINGS PER SHARE -- BASIC
Continuing operations $1.27 $0.38 $2.22 $0.63
Discontinued operations -- 0.07 0.03 0.07
Cumulative effect of accounting
change -- -- -- --
------- ------- ------- -------
$1.27 $0.45 $2.25 $0.71
======= ======= ======= =======

EARNINGS PER SHARE -- DILUTED
Continuing operations $1.27 $0.38 $2.21 $0.63
Discontinued operations -- 0.07 0.03 0.07
Cumulative effect of accounting
change -- -- -- --
------- ------- ------- -------
$1.27 $0.45 $2.24 $0.71
======= ======= ======= =======

AVERAGE COMMON SHARES OUTSTANDING
Basic 152.9 151.3 152.9 151.1
Diluted 153.6 151.6 153.6 151.5
ENSCO INTERNATIONAL INCORPORATED
CONDENSED CONSOLIDATED BALANCE SHEET
(In millions)


June 30, December 31,
2006 2005
------------ ------------
(Unaudited)

ASSETS

CURRENT ASSETS
Cash and cash equivalents $309.8 $268.5
Accounts receivable, net 370.1 269.0
Prepaid expenses and other 45.9 40.9
------------ ------------
Total current assets 725.8 578.4

PROPERTY AND EQUIPMENT, NET 2,823.2 2,663.6

GOODWILL 336.2 336.2

OTHER ASSETS, NET 37.0 39.7
------------ ------------

$3,922.2 $3,617.9
============ ============


LIABILITIES AND STOCKHOLDERS' EQUITY

CURRENT LIABILITIES
Accounts payable and accrued liabilities $212.8 $214.2
Current maturities of long-term debt 17.2 17.2
------------ ------------
Total current liabilities 230.0 231.4

LONG-TERM DEBT 466.9 475.4

DEFERRED INCOME TAXES 333.9 338.3

OTHER LIABILITIES 33.4 32.8

STOCKHOLDERS' EQUITY 2,858.0 2,540.0
------------ ------------

$3,922.2 $3,617.9
============ ============
ENSCO INTERNATIONAL INCORPORATED
CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS
(In millions)
(Unaudited)


Six Months
Ended
June 30,
---------------
2006 2005
------- -------

OPERATING ACTIVITIES
Net income $344.5 $107.0
Adjustments to reconcile net income to net cash
provided by operating activities of continuing
operations:
Depreciation and amortization 86.8 74.7
Changes in working capital and other (71.4) (10.9)
------- -------
Net cash provided by operating activities of
continuing operations 359.9 170.8
------- -------

INVESTING ACTIVITIES
Additions to property and equipment (283.8) (223.6)
Net proceeds from disposal of discontinued
operations 10.0 121.0
Other 1.9 0.8
------- -------
Net cash used in investing activities (271.9) (101.8)
------- -------

FINANCING ACTIVITIES
Reduction of long-term borrowings (8.6) (49.7)
Cash dividends paid (7.7) (7.6)
Proceeds from exercise of stock options 20.7 21.3
Repurchase of common stock (52.2) --
Other 1.1 (4.2)
------- -------
Net cash used in financing activities (46.7) (40.2)
------- -------

Effect of exchange rate fluctuations on cash and cash
equivalents (0.1) (1.0)
Net cash provided by discontinued operations 0.1 2.1
------- -------

INCREASE IN CASH AND CASH EQUIVALENTS 41.3 29.9

CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD 268.5 267.0
------- -------

CASH AND CASH EQUIVALENTS, END OF PERIOD $309.8 $296.9
======= =======


Effective January 1, 2006, the Company adopted Financial Accounting
Standards No. 123, (revised 2004) "Share-Based Payment," using the
modified-retrospective transition method. Accordingly, compensation
expense recognized in prior periods has been restated to include
share option compensation expense previously reported on a pro forma
basis in the Company's financial statement footnotes.
ENSCO INTERNATIONAL INCORPORATED
OPERATING STATISTICS


First
Second Quarter Quarter
------------------
2006 2005 2006
--------- -------- ----------
Contract drilling
-----------------------------------------
Average day rates
Jackup rigs
North and South America $129,664 $60,820 $115,960
Europe / Africa 144,510 75,667 134,061
Asia Pacific 88,351 65,737 80,383
--------- -------- ----------
Total jackup rigs 114,289 65,434 103,379
Semisubmersible rig -- N. America 187,296 141,788 189,191
Barge rig -- Asia Pacific 57,109 52,249 55,870
Platform rig -- North America 38,041 33,485 35,951
--------- -------- ----------
Total $114,912 $66,453 $103,184
========= ======== ==========

Utilization
Jackup rigs
North and South America 95% 86% 81%
Europe / Africa 100% 96% 100%
Asia Pacific 98% 87% 96%
--------- -------- ----------
Total jackup rigs 97% 88% 91%
Semisubmersible rig - N. America 98% 92% 59%
Barge rig -- Asia Pacific 96% 96% 100%
Platform rig -- North America 100% 100% 100%
--------- -------- ----------
Total 97% 89% 91%
========= ======== ==========