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I don't know which way this is going, so I'll just watch from the side.
Agreed:
Precision Drilling Corp. (NYSE: PDS) is an onshore drilling company that focuses on North American services. The company’s trailing P/E is a robust 58.05 and its forward P/E is 13.27. Drillers, particularly onshore drillers not affected by the moratorium in the Gulf of Mexico, have done well this year. Precision has boosted its rig utilization rate so far this year and expects to bring another dozen rigs online in 2011, with 11 going to Canada.
Scanner Detects Bullish Inside Day Pattern for Precision Drilling Trust (PDS)
http://www.mysmartrend.com/news-briefs/candlestick/smartrends-candlestick-scanner-detects-bullish-inside-day-pattern-precision-
I really believe that PDS will fall no lower than 5.50. This company has huge potential. They are finally starting to move north once again and if you do your research nothing drastic has happened to the company, just went down with the economy. Look for PDS to be a great play and slowly start to move up past the 9 again by year end.
PDS is finally starting its climb. Asking price is way up. Debt is under control. Oil prices stabalizing to shallow climb. I haven't seen anything about its latest presentation. Anybody find news on that?
Best guess is that dividends will be starting soon.
I actually bought some, I was so pissed at em.....
Now with the stock offering to existing shareholders under way, PDS has the opportunity to minimize its accured debt due to Grey wolf acquisition.
Given a June date for final purchases, it would seem reasonable that by Sept we should start seeing monthly dividends again.
Any other thoughts?
Open-End vs. Closed-End
http://www.investopedia.com/articles/mutualfund/05/IntroToClosed.asp
Saturday, February 28, 2009
Monday
In last week's newsworthy section, I used a clip from Briefing.com that discussed the outflows from equity mutual funds. Well on Friday, I saw the numbers through February 18. According to TrimTabs Investment Research, the outflows from February 11 to February 18 were $10.7 billion. They also reported outflows in U.S. equity based ETFs of $6.9 billion.
Is it any wonder the market went down last week? A total of $17.6 billion flowing out of mutual funds and ETFs in one week creates a lot of selling pressure.
So where do we go from here? The 7,200 level on the Dow is absolutely critical. It is that line on the edge of the cliff that Bugs has drawn. The market is being played by Yosemite Sam and he is edging towards that line. A step over that line and it is a drop of another 3,200 feet (points that is) down to the next layer of support.
Now who's getting drilled?
Changing gears a bit, let's turn to a land driller getting no love. Earlier this month, I suggested that people picking up shares of drillers like Precision Drilling Trust (NYSE: PDS) or Helmerich & Paynes (NYSE: HP) were likely to get burned in the near term. That's turned out to be horribly prescient in the case of the former company.
The shares of this well-heeled contract driller have collapsed from what seemed like already depressed levels to $2 and change. Precision has been attempting to shore up its balance sheet by various means, from dashing its dividend to raising fresh capital. Mr. Market has been most unimpressed. Somehow, Precision managed to place new units at $3.75 yesterday. The proposed debt issuance, however, has stalled. That leaves Precision stuck with a bridge loan charging 17% interest.
Is Precision perilously close to defaulting on its obligations? The market price suggests an affirmative answer, but the real pressure doesn't hit until the very end of 2009, when debt maturities begin to surface. That suggests to me that Precision has time to maneuver its way through this funding crunch. But I'm just one guy, and the market has spoken. Unless you have some unique insight into the situation here, I would probably suggest standing aside.
Precision Drilling Trust Announces Postponement of Senior Notes Offering and Provides Update on Financing
CALGARY, ALBERTA -- (Marketwire) -- 02/19/09 -- This news release contains "forward-looking information and statements" within the meaning of applicable securities laws. For a full disclosure of the forward-looking information and statements and the risks to which they are subject, see the "Cautionary Statement Regarding Forward-Looking Information and Statements" later in this news release.
Precision Drilling Trust ("Precision" or the "Trust") announced today that its subsidiary, Precision Drilling Corporation, has postponed its offering of US$250 million principal amount of senior notes due 2015 due to currently unfavourable market conditions.
"The Trust closed the offering of 46,000,000 trust units yesterday that provided gross proceeds of US$172 million," stated Mr. Kevin Neveu, President & Chief Executive Officer of Precision Drilling Corporation. "Precision will continue to use the committed financing that it has in place. The unsecured financing is committed through a bridge facility and under its terms, the drawn portion will convert to long-term financing on or before December 23, 2009, if not refinanced. The rate of interest Precision is paying on the unsecured bridge facility is currently fixed at 17% per annum."
Precision will use the equity proceeds, and if necessary draw on the unsecured bridge facility, to purchase any of the Grey Wolf convertible notes tendered to a change of control offer which expires later in March. If all convertible notes tender to the offer, Precision expects to draw an additional US$98 million for a total of US$236 million on the unsecured bridge facility.
Precision also has a US$1.2 billion secured facility which includes a revolving credit facility of US$400 million. At year end 2008, the Trust had cash of approximately US$50 million, with only US$88 million drawn down under the revolving credit facility, providing Precision with ample liquidity. The overall blended floating cash interest rate before amortization of upfront costs on the secured facility is currently 8% per annum.
Mr. Neveu continued, "Precision's management team is experienced in operating through the cycles in the land drilling industry. As such, we are taking all necessary steps to reduce expenses and capital expenditures, in order to increase cash flow that will be applied to reduce our debt balance going forward. We believe that our cash flow generation, coupled with our equity offering, will enable us to significantly reduce the overall debt balance by the end of 2009. We also believe that the equity offering provides additional assurance, positioning Precision to comply with its debt covenants going forward."
The Trust presently has approximately 200 rigs operating in the United States and Canada, with over 100 of those working under term contracts. In 2009, Precision's term contracts provide for an average of approximately 85 contracted rigs that are anticipated to generate substantial profit margin per rig day, consistent with peak levels achieved during 2008. This base of contracted rigs, coupled with the well-to-well contracted rigs and cash generation from other business units, is expected to provide the cash flow necessary to significantly reduce debt during 2009.
Mr. Neveu concluded, "Precision is well positioned with its diverse operating platform, strong working capital and liquidity position plus committed financing to lead the eventual rebound in land drilling rig activity."
About Precision
Precision is a leading provider of safe, high performance energy services to the North American oil and gas industry. Precision provides customers with access to an extensive fleet of contract drilling rigs, service rigs, camps, snubbing units, wastewater treatment units and rental equipment backed by a comprehensive mix of technical support services and skilled, experienced personnel.
Precision is headquartered in Calgary, Alberta, Canada. Precision is listed on the Toronto Stock Exchange under the trading symbol "PD.UN" and on the New York Stock Exchange under the trading symbol "PDS".
Precision Drilling Trust (the “ Trust ”) is hereby qualifying for distribution 46,000,000 trust units (“ Trust Units ”) of the Trust at a price of U.S.$3.75 per Trust Unit (the “ Offering ”).
The issued and outstanding Trust Units of the Trust are listed on the Toronto Stock Exchange (the “ TSX ”) under the symbol “PD.UN” and on the New York Stock Exchange (the “ NYSE ”) under the symbol “PDS”. On February 6, 2009, the last trading day prior to the public announcement of the Offering, the closing price of the Trust Units on the TSX was $4.95 and the closing price of the Trust Units on the NYSE was U.S.$3.98. The Trust has applied to list the Trust Units offered by this Prospectus Supplement on each of the TSX and the NYSE. Listing will be subject to the Trust fulfilling all of the listing requirements of each of the TSX and the NYSE.
The Trust is permitted, under a multi-jurisdictional disclosure system adopted by the United States and Canada, to prepare this Prospectus Supplement and the Prospectus in accordance with Canadian disclosure requirements. Prospective investors should be aware that such requirements are different from those of the United States. The Trust has prepared its financial statements in accordance with Canadian GAAP (as defined herein) and is subject, in respect of its audited consolidated financial statements for the year ended December 31, 2005, to Canadian auditing and auditor independence standards and, in respect of its audited consolidated financial statements for the years ended December 31, 2006 and 2007, to the auditing and auditor independence standards of the Public Company Accounting Oversight Board. Therefore, the Trust’s financial statements may not be comparable to the financial statements of United States companies in certain respects .
It is important for an investor to consider the particular risk factors that may affect the industry in which the investor is investing. See “Risk Factors”.
Prospective investors should be aware that the purchase of Trust Units may have tax consequences both in the United States and Canada. This Prospectus Supplement and the Prospectus do not describe these tax consequences fully. Prospective investors should read the tax discussion in this Prospectus Supplement and consult with a tax advisor. See “Canadian Federal Income Tax Considerations” and “United States Federal Income Tax Considerations”.
The enforcement by investors of civil liabilities under United States federal securities laws may be affected adversely by the fact that the Trust has been settled under the laws of Canada, that some or all of the trustees of the Trust and the directors and officers of Precision Drilling Corporation (“Precision”), the administrator of the Trust, are residents of Canada, that some or all of the underwriters or experts named in the Prospectus, this Prospectus Supplement or the documents incorporated by reference therein or herein, as applicable, are Canadian residents, and that all or a significant portion of the assets of the Trust and said persons may be located outside of the United States.
Neither the United States Securities and Exchange Commission (the “SEC”) nor any state or provincial securities commission or similar regulatory authority has approved or disapproved of these securities, or passed upon the adequacy or accuracy of this Prospectus Supplement or the Prospectus. Any representation to the contrary is a criminal offence.
The offering price of the Trust Units offered under this Prospectus Supplement was determined by negotiation among the Trust and RBC Dominion Securities Inc. and Deutsche Bank Securities Inc. (the “ Co-lead Underwriters ”), on their own behalf and on behalf of TD Securities Inc., HSBC Securities (Canada) Inc., Cormark Securities Inc., FirstEnergy Capital Corp. and Tristone Capital Inc.
(collectively, the “ Underwriters ”).
Price to
Underwriters’
Net Proceeds to
the Public Fee the Trust (1)
Per Trust Unit U.S.$3.75 U.S.$0.15 U.S.$3.60
Total U.S.$172,500,000 U.S.$6,900,000 U.S.$165,600,000
Notes:
(1) Before deducting expenses of the Offering, estimated to be U.S.$1,000,000.
(2) The Trust has granted to the Underwriters an option (the “ Over-Allotment Option ”) to purchase up to an additional 6,900,000 Trust Units, representing up to 15% of the offering of Trust Units, at a price of U.S.$3.75 per Trust Unit on the same terms and conditions as the Offering, exercisable in whole or in part, from time to time, not later than the 30th day following the closing of the Offering to cover over-allotments, if any, and for market stabilization purposes. If the Over-Allotment Option is exercised in full, the total price to the public, Underwriters’ fee and net proceeds to the Trust (before deducting expenses of the Offering) will be U.S.$198,375,000, U.S.$7,935,000 and U.S.$190,440,000 respectively. A purchaser who acquires Trust Units forming part of the Underwriters’ over-allotment position acquires those Trust Units under this Prospectus Supplement regardless of whether the over-allotment position is filled through exercise of the Over-Allotment Option or secondary market purchases. This Prospectus Supplement also qualifies for distribution the issuance of the additional Trust Units pursuant to the exercise of the Over-Allotment Option. See “Plan of Distribution”.
RBC Capital Markets Deutsche Bank Securities
TD Securities HSBC
Cormark Securities Inc.
FirstEnergy Capital Corp.
Tristone Capital Inc.
Merger: Precision Drilling Trust (“Precision Drilling”) and Grey Wolf, Inc. (“Grey Wolf”)
http://www.pinksheets.com/edgar/GetFilingHtml?FilingID=6125850
Looking into this one, seems like moody's pulled a fast one on them...chart looks ready tho....
Precision Drilling Trust & Grey Wolf, Inc. Announce Merger Consideration ElectionDeadline of December 19, 2008 in Connection ...
Precision Drilling Trust (“Precision”) (TSX:PD.UN) (NYSE:PDS) and Grey Wolf, Inc. (“Grey Wolf”) (AMEX:GW) today announced the deadline for merger consideration elections in connection with Precision’s proposed acquisition of Grey Wolf. Grey Wolf shareholders wishing to make an election or amend their election regarding the consideration they would like to receive for their shares of Grey Wolf common stock must deliver to Computershare Trust Company, N.A, the exchange agent, a properly completed letter of transmittal and form of election by 5:00 p.m. CST on Friday, December 19, 2008, the election deadline. Each share of Grey Wolf common stock will be converted, at the holder’s option, into $9.02 in cash or 0.4225 of a Precision trust unit, subject to proration, as described in the proxy materials previously sent to Grey Wolf shareholders.
Grey Wolf shareholders who do not properly deliver the letter of transmittal and form of election to Computershare Trust Company, N.A. at the address specified therein prior to the election deadline will forfeit the right to select the form of consideration they would like to receive. If the merger is completed, such non-electing shareholders will be allocated Precision trust units and/or cash in accordance with the formulae of the merger agreement which are dependent upon all elections of other holders of Grey Wolf common stock. Completion of the merger is subject to customary closing conditions, as well as the approval of Grey Wolf shareholders at the special meeting. Closing of the merger is expected to occur promptly after the special meeting of Grey Wolf shareholders on December 23, 2008.
Grey Wolf shareholders may obtain additional copies of the letter of transmittal and form of election by contacting Georgeson Inc., the information agent, at 1-800-561-3540.
Cautionary Statements Regarding Forward-Looking Information and Statements Statements about Grey Wolf's and Precision's expectations and all other statements in this news release other than historical facts are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements rely on a number of assumptions concerning future events and are subject to a number of uncertainties and factors, many of which are outside Grey Wolf’s and Precision’s control, which could cause actual results to differ materially from such statements. Forward-looking information includes, but is not limited to, statements regarding the proposed merger, including whether and when the transactions contemplated by the Merger Agreement will be consummated. Among the factors that could cause results to differ materially from those indicated by such forward-looking statements are failure to receive approval of the Merger Agreement by the shareholders of Grey Wolf and satisfaction of various other conditions to the closing of the merger contemplated by the Merger Agreement.
This press release contains statements that may constitute "forward-looking information" or "forward-looking statements" (collectively, "forward-looking information") within the meaning of applicable Canadian securities legislation. This forward-looking information includes, among others, statements regarding plans and expectations, beliefs, goals and objectives and statements about possible future events. Specific forward-looking information contained in this press release includes statements regarding Precision's proposed merger with Grey Wolf and the completion of the merger. Readers are cautioned not to place undue reliance on such forward-looking information. Forward-looking information is based on current expectations and assumptions that involve a number of risks, which could cause actual results to vary and in some instances to differ materially from those anticipated by Precision and described in the forward-looking information contained in this press release. Among the various factors that could cause results to vary materially from those indicated in the forward-looking information include failure to receive approval of the merger by Grey Wolf’s shareholders. No assurance can be given that any of the events anticipated by the forward-looking information will transpire or occur or, if any of them do so, what benefits Precision will derive therefrom.
Additional Information and Where to Find It In connection with the proposed merger, Precision has filed a registration statement on Form F-4 which includes a proxy statement of Grey Wolf and other materials, with the Securities and Exchange Commission. SECURITYHOLDERS ARE URGED TO CAREFULLY READ THE REGISTRATION STATEMENT AND THE PROXY STATEMENT/PROSPECTUS, THE SUPPLEMENTS THERETO AND THESE OTHER MATERIALS REGARDING THE PROPOSED MERGER BECAUSE THEY CONTAIN IMPORTANT INFORMATION ABOUT GREY WOLF, PRECISION AND PRECISION LOBOS CORPORATION, A WHOLLY-OWNED SUBSIDIARY OF PRECISION CREATED AS A SPECIAL-PURPOSE ACQUISITION VEHICLE, AND THE PROPOSED MERGER. Securityholders may obtain a free copy of the registration statement and the proxy statement/prospectus and other documents containing information about Grey Wolf and Precision, without charge, at the SEC’s website www.sec.gov, Precision’s website www.precisiondrilling.com and Grey Wolf’s website www.gwdrilling.com. Copies of the registration statement and the proxy statement/prospectus and the SEC filings that will be incorporated by reference therein may also be obtained for free by directing a request to either Investor Relations, Precision Drilling Trust, (403) 716-4500 or to Investor Relations, Grey Wolf, Inc., (713) 435- 6100.
Participants in the Solicitation Grey Wolf and Precision and their respective directors, officers, trustees and other persons may be deemed to be participants in the solicitation of proxies from Grey Wolf's shareholders in respect of the proposed merger. Information about the directors and executive officers of Grey Wolf and their ownership of Grey Wolf common stock can be found in Grey Wolf's proxy statement filed October 29, 2008 (as supplemented from time to time, the "proxy statement/prospectus"). Information concerning the directors and executive officers of Precision is included in the proxy statement/prospectus. Additional information regarding the identity of potential participants in the solicitation of proxies in respect of the proposed merger and a description of their direct and indirect interests, by security holdings or otherwise, is also included in the proxy statement/prospectus.
PDS broke out today! See daily charts in iBox...
valuation cheap...
P/E Ratio: 5.26
P/E Ratio vs. Industry: 28.08
Current div yield 9.98%
Precision went on a short-term buy signal at yesterday's close. Next target is the 21-day SMA. See daily charts in iBox.
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Precision Drilling Trust is Canada's largest oilfield services company, providing contract drilling, well servicing and strategic support services to customers. Precision supplies on-the-ground expertise - people, equipment and knowledge - to enable about one-third of western Canada's conventional oil and gas production.
Precision Drilling Trust (the Trust) is an open-ended investment trust. The Trust holds a 99.82% interest in Precision Drilling Limited Partnership (PDLP), which is a limited partnership. On November 7, 2005, Precision Drilling Corporation (Precision) became a wholly owned subsidiary of PDLP. Precision amalgamated with 1195309 Alberta ULC on November 23, 2005; Live Well Service Ltd. On January 1, 2006, and Terra Water Group Ltd. (Terra) on January 1, 2007.
Precision's operations are carried out in two segments: Contract Drilling Services, and Completion and Production Services.
On August 17, 2006, Precision acquired Terra, a privately owned wastewater treatment business operating at remote worksite locations. Terra had 41 treatment units at the time of the acquisition.
150-6th Avenue SW
Suite 4200
Calgary, AB T2P 3Y7
Canada - Map
Phone: 403-716-4500
Fax: 403-264-0251
Web Site: http://www.precisiondrilling.com
DETAILS
Index Membership: N/A
Sector: Basic Materials
Industry: Oil & Gas Equipment & Services
Full Time Employees: NaN
Profile and History :
Precision Drilling Ltd. was founded as a private drilling contractor in the early 1950s in the post-Leduc oil boom in western Canada and, after restructuring in the 1980s, grew to become the largest provider of oilfield services in Canada.
The roots of Precision Drilling Trust, date to 1987 with the reverse takeover of the far larger Precision Drilling Ltd. by Cypress Drilling Ltd., a company established two years earlier under the leadership of Hank Swartout.
In the next decade, Precision's fleet grew to more than 100 drilling rigs through acquisitions and rig builds. The acquisition of Kenting Energy Services in 1997 doubled Precision's fleet again to more than 200 rigs. Today, Precision operates over 240 land drilling rigs in Canada and United States.
Expansion into businesses that became Precision Well Servicing, Live Well Service and Precision Rentals began with the acquisitions of diversified oilfield services company EnServ Corp. in 1996 and CenAlta Energy Services four years later. Today, Precision operates over 235 service rigs, 30 snubbing units and provides 15,000 pieces of rental equipment.
To support its rig fleets, Precision developed complementary business lines. Precision entered the camp and catering business with the 1993 acquisition of LRG Oilfield Services and augmented its rig manufacturing and logistical support capabilities with the acquisitions of Rostel Industries in 1996 and Columbia Oilfield Supply in 1997. In 2005 Precision Corporation converted to an open-ended income trust and in 2006 Precision entered the campsite wastewater treatment business with the acquisition of Terra Water Group. http://www.precisiondrilling.com/AboutPreProfileAndHistory.cfmcision/
The company was founded in 1951 and is headquartered in Calgary, Canada.
Board of Directors
http://www.precisiondrilling.com/AboutPrecision/aboutusboardofdir/BoardOfDirectorsbio.cfm
O/S - 125.8 ml
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