PDS Is Slowing Making Ground
Precision Drilling Corporation (PDS) is likely to gain market share in North America in Q2 2020 despite the fall in drilling activity. While rig fleet can drop again in Q2, the deployment of the efficient pad-optimal rigs and Super Triple rigs will keep margin steady in the medium-term. Plus, the commercialization of the technology-based app like AlphaAutomation in international operations will partially mitigate the revenue loss.
However, the company’s revenues will fall in Q2 following COVID-19 and the drop in energy demand. Given the PDC’s high leverage, it