Ensco plc ESV announced the final results and settlement of its offer to purchase for cash a total combined principal amount of up to $750 million of its Notes. The tender offer expired on Apr 1, 2016.Under the offer, the company received valid tenders totaling approximately $860.7 million aggregate principal amount of Notes. This, after accounting for a weighted average discount of 28%, comes down to an aggregate purchase price of approximately $622.3 million after excluding accrued and unpaid interest. Ensco will use cash on hand to settle the transaction and continues to have a fully available $2.25 billion revolving credit facility.At the end of the fourth quarter, Ensco had $121.3 million in cash and cash equivalents. Long-term debt (including current maturities) was $5,895.1 million, with net debt-to-capitalization ratio coming in at 41%. The annual interest expense of the Notes was approximately $42 million. Net interest expense is expected to be approximately $57 million in second-quarter 2016 and $58 million in third-quarter 2016.Ensco is expected to witness increased downtime in 2016. This will affect its utilization rates in the coming quarters and thus, lower revenues. Further, getting contract extension for rigs in Brazil is increasingly becoming a challenge for the firm and is a cause for concern.Crude price has declined sharply and is currently trading around $37 a barrel. Therefore, the top energy companies have resorted to spending cuts (in particular on the costly upstream projects) to counter lower profit margins. This, in turn, means less work for drilling contractors like Ensco.Ensco's business depends on oil and gas exploration and production (E&P) activity. Hence, any change in oil and gas prices could put further pressure on E&P spending and lower demand for its service offerings.The increased supply of high-spec rigs is likely to put pressure on the utilization of standard jackups in the long run. Also, the company's execution ability with respect to jackups under construction will play a big role in determining its growth.Ensco carries a Zacks Rank #3 (Hold). Some better-ranked players from the energy sector are Sasol Ltd. SSL, Murphy USA Inc. MUSA and Vanguard Natural Resources, LLC VNR. Each of these stocks sports a Zacks Rank #1 (Strong Buy). Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report MURPHY USA INC (MUSA): Free Stock Analysis Report SASOL LTD -ADR (SSL): Free Stock Analysis Report ENSCO PLC (ESV): Free Stock Analysis Report VANGUARD NATURL (VNR): Free Stock Analysis Report To read this article on Zacks.com click here. Zacks Investment Research