Precision Drilling ( NYSE: PDS ) +4.8% in Wednesday's trading after saying it was awarded four contracts in Kuwait for its AC Super Triple 3000 HP rigs, each with a five-year term and an optional one year renewal.
Precision ( PDS ) said the deal will increase its active rig count in Kuwait to five rigs from three by the middle of 2023.
The company also said it signed a third drilling rig in Saudi Arabia to a five-year contract extension, following two five-year contract signings in Q2.
With the three contract extensions in Saudi Arabia and the Kuwait contract awards, Precision ( PDS ) said it will have eight rigs under long-term contracts in the Middle East stretching into 2028 and representing ~$600M in backlog revenue.
Precision Drilling ( PDS ) has become less risky but remains unattractive from a long-term perspective, Aristofanis Papadatos writes in an analysis posted on Seeking Alpha .
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Precision Drilling rises after racking up four Kuwait contract awards