2024-07-07 05:38:04 ET
Summary
- Precision Drilling Corporation is experiencing growth in service rigs, driven by Trans Mountain pipeline expansion and regulatory spending requirements, potentially accelerating demand for the stock.
- Recent plans to reduce debt levels and distribute 25%-35% of FCF to shareholders could further boost stock demand.
- The business review highlights drilling as the most relevant activity, with potential synergies from CWC Energy Services acquisition and automation technologies enhancing future drilling activities.
- Based on my own DCF model, peer review, and research of other opinions from analysts, my price target is $104-$105 per share.
Investment Thesis
Precision Drilling Corporation ( PDS ) is experiencing a significant increase in the number of service rigs, and more could come, thanks to the Trans Mountain pipeline expansion and regulatory spending requirements for well abandonment increase. The recent plans for reduction of the debt levels and distribution of 25%-35% of FCF generated to shareholders could accelerate demand for the stock....
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For further details see:
Precision Drilling: Automation Makes It A Buy