- Despite a Q2 loss, Precision Drilling (PDS -0.8%) says it plans to raise its 2015 capital budget to $546M, up from the $506M it had expected to spend.
- PDS says some of the money will be used to build a new high-powered drilling rig to be deployed in Alberta, bringing the total number of new rigs it will build this year to 19, and move a few of its existing rigs from the U.S. to more active oil and gas plays in Canada, which analysts say is a sign of optimism.
- "The announced new build plus the transfer of several (high powered) rigs to the Canadian deep basin from the U.S. adds to modest optimism that Tier 1 rigs will be fired up in [H2] for improved overall activity levels,” AltaCorp says.
- The increase in spending comes despite a $30M Q2 loss, but the result nevertheless exceeded analyst expectations.