Our Canadian drilling days forecast has been lowered in 2016e to ~79,550, from ~95,800. However, downside risk remains as we believe strip pricing would lead to activity of ~64,000 days in 2016e. In the U.S., we have reduced our rig count forecast to 971 (prior: 997) in and 988 (prior: 1,094) in 2015e and 2016e, respectively. Despite our bearish activity outlook, historical cycle analysis leads us to believe it is a good time to take positions in certain stocks that will benefit from a recovery ....
