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Just took a nice stake in PDS. Here's why:

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Report of Foreign Issuer (6-k) Edgar (US Regulatory) - 6/4/2019 8:38:31 AM
Precision Announces Year-To-Date Debt Repayment of $125 Million to Reach the Mid-Point of Targeted 2019 Debt Reduction Range GlobeNewswire Inc. - 6/4/2019 6:00:00 AM
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Precision Drilling Corporation Announces Voting Results From the 2019 Annual and Special General Meeting of Shareholders GlobeNewswire Inc. - 5/3/2019 4:24:10 PM
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Precision Drilling Corporation Announces 2019 First Quarter Unaudited Financial Results GlobeNewswire Inc. - 4/25/2019 6:00:00 AM
Report of Foreign Issuer (6-k) Edgar (US Regulatory) - 4/23/2019 8:21:16 AM
Precision Drilling Corporation Announces Webcast of 2019 Annual and Special Meeting of Shareholders GlobeNewswire Inc. - 4/22/2019 6:00:00 AM
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Precision Drilling Corporation 2019 First Quarter Results Conference Call and Webcast GlobeNewswire Inc. - 4/2/2019 4:12:02 PM
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Precision Drilling Announces Asset Divestitures, Senior Note Redemption and Provides International Contract Update GlobeNewswire Inc. - 3/18/2019 6:00:00 AM
Report of Foreign Issuer (6-k) Edgar (US Regulatory) - 3/6/2019 6:01:50 AM
Precision Drilling Corporation Announces Filing of Annual Disclosure Documents GlobeNewswire Inc. - 3/5/2019 6:50:01 PM
Annual Report (foreign Private Issuer) (40-f) Edgar (US Regulatory) - 3/5/2019 5:21:28 PM
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Precision Drilling Corporation Announces 2018 Fourth Quarter and Year End Unaudited Financial Results GlobeNewswire Inc. - 2/14/2019 6:00:00 AM
Amended Statement of Ownership (sc 13g/a) Edgar (US Regulatory) - 2/13/2019 12:09:53 PM
Report of Foreign Issuer (6-k) Edgar (US Regulatory) - 1/31/2019 5:05:38 PM
ogbull   Thursday, 06/09/16 02:25:57 AM
Re: None
Post # of 61 
Just took a nice stake in PDS. Here's why:

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).


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