Precision Drilling Has Become Less Risky But Remains Unattractive

Aristofanis Papadatos profile picture
Aristofanis Papadatos
8.19K Followers

Summary

  • PDS currently enjoys a strong tailwind thanks to the sanctions of western countries on Russia.
  • PDS should be praised for prioritizing a healthy balance sheet.
  • However, PDS remains unattractive from a long-term perspective due to a secular headwind in its business and the record number of clean energy projects under development.

Oil Pumps And Rig At Sunset By The Sea

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About six months ago, I analyzed the risks of Precision Drilling (NYSE:PDS). Since then, the stock has underperformed the energy sector by a remarkably wide margin, as it has declined 15% whereas the Energy Select Sector SPDR ETF (

https://seekingalpha.com/article/4526467-precision-drilling-corporation-2022-q2-results-earnings-call-presentation

Precision Drilling Business (Investor Presentation)

https://seekingalpha.com/article/4526467-precision-drilling-corporation-2022-q2-results-earnings-call-presentation

Precision Drilling Debt (Investor Presentation)

This article was written by

Aristofanis Papadatos profile picture
8.19K Followers
I am a chemical engineer with a MS in Food Technology and Economics. I am also the author of 2 mathematics books ("Arithmetic calculations without a calculator" and "Word Problems") and perform almost all the calculations in my mind, without a calculator, making it easier to make immediate investing decisions among many alternatives. I invest applying fundamental and technical analysis and mainly use options as a tool for both investing and trading. I have nearly achieved my goal of early retirement, at the age of 45. In my spare time, I follow Warren Buffett's principle: "Some men read playboy. I read financial statements".

Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

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