Savanna reported 2Q16 EBITDAS of $9 mm, which was above our estimate of $7 mm due to better than expected cost controls. Performance contracts in Australia had a positive impact of ~$5,000 per day on drilling day rates in 2Q16, indicating the switch to this type of contract could be beneficial to Australian profitability. We have increased 2016e EBITDAS by 10% to $52 mm and 2017e EBITDAS by 11% to $59 mm.
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Savanna reported 2Q16 EBITDAS of $9 mm, which was above our estimate of $7 mm due to better than expected cost controls. Performance contracts in Australia had a positive impact of ~$5,000 per day on drilling day rates in 2Q16, indicating the switch to this type of contract could be beneficial to Australian profitability. We have increased 2016e EBITDAS by 10% to $52 mm and 2017e EBITDAS by 11% to $59 mm.