SDPI Is Unlikely To Improve Shortly
Superior Drilling Products (SDPI) provides drilling and completion tool technology. Although the long-term growth drivers are still active, I do not expect positive returns from SDPI's stock price in the short-term. Decreased revenues from replacement tool sales and higher operating costs due to setting up of a regional service center can reduce the company's margin.
Despite the volatility in the crude oil price, steady horizontal drilling activity has kept SDPI's Drill-N-Ream (or DnR) product sales in the U.S. relatively stable. However, the midstream infrastructure issue in the