Precision Drilling: Bullish On Canadian Oilfield Services Stocks Going Into 2024

The Energy Realist
2.58K Followers

Summary

  • Echoing the events from this past spring, land drillers have sold off again and have possibly created another buying opportunity.
  • The Canadian players Precision Drilling and Ensign Energy appear particularly undervalued, given that oilfield activity in Canada stands at multi-year highs.
  • Precision Drilling can be bought at 3x next year's EBITDA or 5x next year's earnings; Wall Street expects 60% upside.
  • I rate Precision Drilling a "buy"; I am bullish on premium drilling and completion services providers, particularly those with Canadian exposure.
Drilling rig.

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Note: Precision Drilling is a Canadian company; the article distinguishes between Canadian dollars (C$) and US dollars (US$).

Investment thesis

Precision Drilling (NYSE:PDS) is one of the 5 big providers of land drilling services to the oil and gas

This article was written by

2.58K Followers
Financial blogger, part-time investor. Bullish oil & gas, OFS/offshore, commodities, EMs. Bearish energy transition. My posts aren't investment advice, DYODD.X/Twitter: @EnergyRealist25

Analyst’s Disclosure:I/we have a beneficial long position in the shares of NBR; ESVIF; CFWFF; SLB either through stock ownership, options, or other derivatives. 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.

My articles, blog posts, and comments on this platform do not constitute investment recommendations, but rather express my personal opinions and are for informational purposes only. I am not a registered investment advisor and none of my writings should be considered as investment advice. While I do my best to ensure I present correct factual information, I cannot guarantee that my articles or posts are error-free. You should perform your own due diligence before acting upon any information contained therein.

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