I-Man
4 years ago
Yes earnings good. Also As of December 31, 2016, the Contract Drilling Services segment consisted of 255 land drilling rigs, including 135 in Canada, 103 in the United States, five in Mexico, four in Saudi Arabia, five in Kuwait, two in the Kurdistan region of Iraq and one in the country of Georgia.
whytestocks
6 years ago
News: $PDS Precision Drilling Corporation 2018 Fourth Quarter and End of Year Results Conference Call and Webcast
CALGARY, Alberta, Jan. 22, 2019 (GLOBE NEWSWIRE) -- Precision Drilling Corporation (“Precision”) intends to release its 2018 fourth quarter results before the market opens on Friday, February 15, 2019 and has scheduled a conference call and webcast to begin promptly at 12:00 N...
Got this from https://marketwirenews.com/news-releases/precision-drilling-corporation-2018-fourth-quarter-and-end-of-year-results-conference-call-and-webcast-7410336.html
eFinanceMarkets
7 years ago
$PDS U.S. drilling creates “industrial inventory” of untapped wells waiting to flow
Oil companies left another 135 wells dormant in the Permian Basin in July, bringing the inventory of drilled but uncompleted wells to 2,330, up 73% Y/Y - wells that could add hundreds of thousands of barrels to surging U.S. oil output when the wells are brought into production.
"You drill, you move on, you frack [and] you get an inventory building," Precision Dilling (NYSE:PDS) CEO Kevin Neveu says. "The shift to multi-well pads has caused an industrial inventory of uncompleted wells to accumulate. The frackers can't keep up with the need."
The Energy Department expects Permian Basin production to rise by 64K bbl/day this month to 2.6M, part of the seven major U.S. shale plays that could pump 6.1M bbl/day, up by 117K bbl/day.
ogbull
8 years ago
DRILL BABY DRILL!
Listen to all the old pros and they'll tell you to keep an eye on the rig count.
Rigs drilling for gas hit a 50 year low a few weeks ago and the count is still going down. In my opinion, Precision Drilling (PDS) has positioned themselves to double in the next 6 months.
I day-traded this stock for years and now think it's rip for a buy and hold. It might bounce around for a few days days but sooner than you can imagine, it will start a march up to $12.
We've been lied too by EIA and others about what they say is a coming gas crash, but it ain't gonna happen. The purpose of the lie is to allow the big boys to slowly move in first.
RigData last month reported that it could not find any active rigs in the Barlett natural gas field that underlies about two dozen counties in North Texas.The area supported nearly 200 rigs less than a decade ago.
Plummeting oil and gas prices, along with the seductive lure of bigger payouts in other parts of Texas and across the country, have brought exploration in North Texas to a halt. In March of last year, the count dropped to one rig for a week, then stayed under 10 since then.
Things have gotten so bad that the Powell Shale Digest in Fort Worth, once a must-read for those following industry activity in the Barnett, published its last edition a month ago.
The Barnett’s heyday was 2008. That June, the average monthly price of gas was $12.78/mmBtu, stirring up so much interest that by September there were 194 rigs in the field, the highest recorded by RigData, according to the Powell Shale Digest.
Hastening the decline were moves by the Barnett’s biggest players to take what they learned about drilling unconventional wells in hard shale rock and head where the gas was greener. The Marcellus and Utica formations in Pennsylvania and Ohio are considered more productive, but these areas are short of pipelines. It does not good to drill wells if there's no way to get the gas to market.
As natural gas prices began their fall from historic highs, drilling started dropping. In 2009, the number of rigs dropped below 100, never to see triple digits again. Three years later, the number of rigs dipped below 50 for the first time. Now they hit zero!
XTO Energy, once a big player in the Barnett, said in March that it no longer had any rigs working in the area. And BlueStone Natural Resources II, soon after it bought another big Barnett player, Quicksilver Resources, out of bankruptcy, said it didn’t anticipate having many new drilling rigs.
“I think the current price level of natural gas is not terribly supportive of drilling, but quite honestly we have a longer-term view for the assets,” John Redmond, president and chief executive of BlueStone, said at the time. Natural gas was selling for about $2 then. If the EIA is right with its latest report, gas will drop to $1/mmBtu by November 2016.
Last month, the number of rigs exploring for oil and natural gas in the U.S. dropped to 431, another all-time low, with 343 searching for oil and 88 for natural gas. A year ago, 932 rigs were active, according to Baker Hughes.
With the price at $2.40 Monday, the near-term future for the Barnett is not promising, Brackett said.
He said his publication’s founder, Gene Powell, once said it would take $6 to $6.50 natural gas prices for six months or more to lure drillers back to the Barnett. “We’re a long way from where prices need to be for us to see a lot of interest in the Barnett Shale,” he said.
“Given our publication started as the Barnett Shale Newsletter, the fact that the rig count has gone to zero it almost seems appropriate we are closing,” he said. “When we started this thing, there wasn’t really anything else than the Barnett.”
This story will repeat itself over and over again.
Gas and oil will disappear unless there is higher prices and an explosion in drilling.
Coal will return to KING and we will all burn to death as global warming turns life on Earth into a living hell.
The time to buy land drillers is now!
ogbull
8 years ago
GAS DRILLING BOOM MUST COME!
Natural gas prices must rise and drilling boom must follow or we will run out of natural gas and face a serious disaster!
New oil discoveries have fallen to a six-decade low as explorers cut billions of dollars of capex spending to ride out the biggest market slump in a generation. Why is the market not worried about a shortage? Because the necessity to cut CO2 to stop global warming and filthy air in cities will curb oil consumption. Vehicles of all sorts will be forced to convert to natgas, including trucks, trains, planes, and ships. The new natgas-fired turbines are ready to go. They will be cheaper to operate on natgas than on oil. Conversions will save shippers lots of money.
Coal is dead! Crude is slowly dying!
The primary fuel for the next 20 years has to be clean burning natgas because it cuts CO2 by 50% and there is no other replacement.
Natural gas, the cleanest fossil fuel, is a highly efficient form of energy. It is composed chiefly of methane; the simple chemical composition of natural gas is a molecule of one carbon atom and four hydrogen atoms (CH4). When methane is burned completely, the principal products of combustion are carbon dioxide and water vapor.
Natural gas's advantages over other fuels include the following: it has fewer impurities, it is less chemically complex, and its combustion generally results in less pollution. In most applications, using natural gas produces less of the following substances than oil or coal: carbon dioxide (CO2), which is the primary greenhouse gas; sulfur dioxide, which is the primary precursor of acid rain; nitrogen oxides, which is the primary precursor of smog; and particulate matter, which can affect health and visibility; than oil or coal. Technological progress allows cleaner energy production than ever for all fuels, although the inherent cleanliness of gas means that environmental controls on gas equipment, if required, tend to be far less expensive than those for other fuels.
Natural gas also is helping America develop clean alternative energy sources in various ways, such as the following:
Natural gas is used to make fertilizer for ethanol.
Natural gas is used to make methane for hydrogen.
Hydrogen is used to eliminate soot for cleaner diesel fuel.
Electric utilities use natural gas to generate clean power.
Natural gas is a raw material that goes into lightweight cars, wind power blades, solar panels and energy-efficient materials.
Using natural gas to replace less environmentally benign fuels can help address simultaneously a number of environmental concerns, such as smog, acid rain and greenhouse gas emissions.
Natural gas is highly efficient. About 90 percent of the natural gas produced is delivered to customers as useful energy. In contrast, only about 30 percent of the energy converted to electricity in conventional generating facilities reaches consumers.
In order to pursue alternative energies, the United States must safely access America's natural gas supplies to bridge the cap until solar and wind can take over. It can't happen without natural gas.
We must switch to natural gas or we all die of heatstroke from Global Warming!
This is why the majors cut the capex in oil exploration. They are also walking away from offshore drilling and getting very serious about onshore fracking for natural gas.
The majors and the deep pockets are smart enough to know that crude oil is on the way out and natural gas is on the way in. If they want to survive, they have to start fracking for gas and they will have to act within the next 6 months.
By 2035, natural gas turbines will be the largest source of electrical power in the U.S., jumping from 21 percent today to more than 40 percent. Coal will dip below 20 percent, while nuclear will stay flat at around 21 percent.
We are looking at a world over time that is switching to natural gas. It is the fuel of the future!
Although natural gas is the big winner, new renewables like solar, wind and geothermal will see a jump as well, rising from four percent of the mix today to 11 percent by 2035.
The outlook is the result of a variety of factors. Technology allowing fossil fuel companies to access shale gas deposits, combined with a proposed pipeline in Alaska that should kick into gear in the next decade, could keep the price of gas under the $8 per million BTU level through 2030.
Precision Drilling will soar during this period!
ogbull
8 years ago
Let's talk about a drilling boom!
The recently released EIA Annual Energy Outlook 2016 forecasts almost unlimited gas supply at low prices. This is a lie! U.S. shale gas production is declining because of low prices AND WILL CONTINUE TO DECLINE!
The financial performance of shale gas-weighted E&P companies in the first quarter of 2016 was a disaster. Chesapeake, the biggest shale gas producer in the US, had negative cash from operations. That means that oil and gas sales didn’t even cover operating costs. Other shale gas plays including Anadarko, Comstock and Petroquest also had negative cash from operations. Goodrich and Sandridge are in bankruptcy and Exco and Halcon will soon follow. Ultra, Forest, Quicksilver, Swift and Talisman went BK last year. On average, surviving companies out-spent cash flow by two-to-one both in 2015 and 2016 but many normally strong companies greatly increased negative cash flow this year.
In other words, gas prices below $3 cannot sustain producers so why is the EIA lying to us!
Shale gas is the principal support for all U.S. gas production since conventional gas is drying up. U.S. dry gas production has declined almost 1 Bcf per day since September 2015 largely because of low gas prices.
Henry Hub gas prices have fallen 120% over the last 2 years from more than $6/mmBtu in January 2014 to $2.47 today and prices have been below $3/mmBtu since early 2015. A similar gas-price decline occurred from June 2011 to April 2012. Then, dry gas production fell when prices dropped below $3/mmBtu.
$3 is well below the breakeven gas price for any operator in any play. Even in the Marcellus–the most commercially attractive shale gas play–breakeven prices are more than $3.
All plays have declined from their respective peaks except the Utica Shale. Marcellus production accounts for more than a third (-0.36 Bcf/d) of shale gas decline in 2016. There is certainly no shortage of supply in that play but low prices and related delays in pipeline commitments have taken their toll on production.
There are no longer any "tier 1" horizontal rigs drilling in the Barnett or Fayetteville. These plays were supposed to help provide the U.S. with 100 years of gas supply.
Gas prices must increase or there will be no one left to produce it!
Lower gas production along with increased consumption and exports spell much higher gas prices later in 2016 and in 2017. On the other hand, the very latest estimates from EIA show that there will be no more storage capacity by October 2016. No more storage capacity will move prices to $1.00/mmBtu.
How can that be true!
Shale gas made sense in 2010 when real gas prices averaged almost $7/mmBtu. That was because there was a supply deficit as conventional production declined before shale gas supply increased to replace it.
Falling gas prices have exposed the BIG LIE. Production growth in the last few years was funded by debt. Capital in search of yield continued to flow and overproduction pushed prices $1.61 by the end of 2015. Gas producers had to produce to pay the interest on the debt, and they did not want anyone to know about it!
The wreckage was obvious in late 2014 but no one so it coming. The disastrous 1Q16 financial data and falling production should have made it clear to everyone. The Barnett and Fayetteville plays that were supposed to last 100 years are dead at current prices. The Haynesville will probably follow soon enough. Capital is vanishing into thin air and so will production.
SOMEBODY LIED TO INVESTORS IN A BIG WAY! SEE MY NEXT POST TO FIND OUT WHY!
ogbull
8 years ago
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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