Thursday, June 09, 2016 2:25:57 AM
Precision Drilling's New MODERN Fleet!
In Canada, Precision is the largest contract driller in the premium rig category. Going into 2016, the company had ~134 rigs deployed in Canada accounting for ~30% market share of the high-performance rig segment.
In the US, PDS operates the fourth largest fleet of ~102 rigs, over 70 of which are high-performance newbuilds (the fourth largest modern-generation fleet after Helmerich & Payne, Nabors, and Patterson-UTI). The company's market share in the high-performance US segment is close to 10%, and its stock price is under $6 while HP is $60+, NBR is near $11, and PTEN is $21+.
PDS retired all its older rigs and reduced its fleet to 238 Super Series "tier 1" rigs worldwide. It is modeling itself after the highly successful Helmerich & Payne (HP). They had to do it because the big boys were pushing the small drillers out of business.
The Super Series "tier 1" rigs feature AC drive, digitized control systems, integrated top drive, bi-directional pad walking or skidding systems for multi-pad well drilling, highly mechanized pipe handling, and high capacity mud pumps. The Super Single specification is a smaller, fast-moving, hydraulically-powered mechanized rigs that are optimized for shallow- to medium-depth resource plays in North America.
Tier 1 are rigs are high performance and very mobile. These are automated with advanced drilling controls. Horizontal capabilities and capacity mud pumps make these highly suited for deeper shale plays that have complex drilling needs, especially when drilling for oil. These rigs have hydraulic legs and can walk around on a large drilling pad to drill many holes in a given area. They are designed for pad-drilling operations.
The latest Pad-optimal rigs have six specific characteristics: 1,500 hp, dual-fuel capabilities, 7,500-psi mud system, safe by design and capable of fast conventional moves, omnidirectional walking systems, and AC drive. These rigs will be the first to achieve 100% utilization in 2016. Equipment that doesn’t meet these characteristics will returned to work on a slower tempo than pad-optimal rigs.
PDS is also stacked 10 Tier 2 rigs. These rigs can drill deep horizontal holes, but aren't mobile for pad-drilling operations. They have scrapped all but 15 Tier 3 rigs because they are unsuitable for horizontal drilling. They do have market niche opportunities so holding 15 makes sense, especially since they are already paid for 10 times over.
This make PDS the least expensive way to play the upcoming land drilling boom (see me next post).
Recent PDS News
- Form 6-K - Report of foreign issuer [Rules 13a-16 and 15d-16] • Edgar (US Regulatory) • 09/13/2024 10:00:43 AM
- Precision Drilling Announces Renewal of Normal Course Issuer Bid • GlobeNewswire Inc. • 09/13/2024 10:00:28 AM
- Form 144 - Report of proposed sale of securities • Edgar (US Regulatory) • 08/26/2024 08:32:43 PM
- Form 6-K - Report of foreign issuer [Rules 13a-16 and 15d-16] • Edgar (US Regulatory) • 08/01/2024 06:56:34 PM
- Form 6-K - Report of foreign issuer [Rules 13a-16 and 15d-16] • Edgar (US Regulatory) • 07/30/2024 08:30:07 PM
- Precision Drilling Announces 2024 Second Quarter Unaudited Financial Results • GlobeNewswire Inc. • 07/30/2024 08:30:00 PM
- Form 6-K - Report of foreign issuer [Rules 13a-16 and 15d-16] • Edgar (US Regulatory) • 07/08/2024 12:00:13 PM
- Precision Drilling Extends Senior Credit Facility and Provides Progress Update on 2024 Debt Repayment and Share Repurchase Targets • GlobeNewswire Inc. • 07/08/2024 12:00:00 PM
- Precision Drilling Corporation 2024 Second Quarter Results Conference Call and Webcast • GlobeNewswire Inc. • 07/03/2024 08:00:05 PM
- Precision Drilling Corporation Announces Voting Results from the 2024 Annual and Special Meeting of Shareholders • GlobeNewswire Inc. • 05/16/2024 09:28:52 PM
- Precision Drilling Corporation Holding Virtual-Only 2024 Annual and Special Meeting of Shareholders on May 16 • GlobeNewswire Inc. • 05/02/2024 08:00:42 PM
- Precision Drilling Announces 2024 First Quarter Unaudited Financial Results • GlobeNewswire Inc. • 04/25/2024 10:29:46 AM
- Precision Drilling Corporation Announces Filing of Management Information Circular, Virtual-Only Annual and Special Meeting of Shareholders, and 2023 ESG Performance Data • GlobeNewswire Inc. • 04/03/2024 08:38:55 PM
- Precision Drilling Corporation 2024 First Quarter Results Conference Call and Webcast • GlobeNewswire Inc. • 04/02/2024 10:00:19 AM
- Precision Drilling Corporation Announces Filing of Annual Disclosure Documents • GlobeNewswire Inc. • 03/04/2024 11:00:14 PM
- Form 6-K - Report of foreign issuer [Rules 13a-16 and 15d-16] • Edgar (US Regulatory) • 03/04/2024 10:26:53 PM
- Form 6-K - Report of foreign issuer [Rules 13a-16 and 15d-16] • Edgar (US Regulatory) • 02/26/2024 01:00:23 PM
- Form 6-K - Report of foreign issuer [Rules 13a-16 and 15d-16] • Edgar (US Regulatory) • 02/06/2024 12:04:30 PM
- Precision Drilling Reports 2023 Fourth Quarter and Year-End Unaudited Financial Results • GlobeNewswire Inc. • 02/06/2024 11:00:03 AM
- Form 6-K - Report of foreign issuer [Rules 13a-16 and 15d-16] • Edgar (US Regulatory) • 01/05/2024 11:06:25 AM
- Precision Drilling Meets 2023 Debt Repayment and Share Repurchase Targets and Provides Capital Allocation, Financial and Operational Updates • GlobeNewswire Inc. • 01/05/2024 11:00:10 AM
- Precision Drilling Corporation 2023 Fourth Quarter and Year-End Results Conference Call and Webcast • GlobeNewswire Inc. • 01/04/2024 11:00:50 AM
- Form 6-K - Report of foreign issuer [Rules 13a-16 and 15d-16] • Edgar (US Regulatory) • 01/04/2024 11:00:11 AM
- Form S-8 - Securities to be offered to employees in employee benefit plans • Edgar (US Regulatory) • 12/20/2023 09:02:26 PM
- Form 144 - Report of proposed sale of securities • Edgar (US Regulatory) • 12/13/2023 03:43:11 PM
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