Precision reported 2Q16 EBITDAS of $32 mm, adjusted for restructuring costs, above our estimate of $27 mm. Precision has added four new rig contracts in 2017e, which we believe are focused on West Texas and the Deep Basin. We anticipate daily margins for these rigs are in the $6,000 to $9,000 per day range, while day rates were highlighted as upper to mid-teens. Our estimates have only undergone moderate changes in 2016e and 2017e.
22 Jul 2016
2Q16 Results as Expected; Adds 4 New Contracts in 2017
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2Q16 Results as Expected; Adds 4 New Contracts in 2017
Precision Drilling Corporation (PD:TSE) | 0 0 (-1.4%) | Mkt Cap: 1,237m
- Published:
22 Jul 2016 -
Author:
Ian Gillies -
Pages:
6
Precision reported 2Q16 EBITDAS of $32 mm, adjusted for restructuring costs, above our estimate of $27 mm. Precision has added four new rig contracts in 2017e, which we believe are focused on West Texas and the Deep Basin. We anticipate daily margins for these rigs are in the $6,000 to $9,000 per day range, while day rates were highlighted as upper to mid-teens. Our estimates have only undergone moderate changes in 2016e and 2017e.