Piper Sandler upbeat on land drillers, pumpers

Precision Drilling(Calgary)

01/06/2022 16:31

** Brokerage Piper Sandler raises its estimates for land
drillers and pumpers amid tight utilisation and pricing/margin
gains that continue to outstrip consensus
    ** "It's been a hot spring this year in the oilfield," the
brokerage says, with Precision Drilling Corp  PD.TO  remaining
its top pick as "positive momentum prevails across the space"
    ** Piper Sandler raises PT on Patterson-UTI's  PTEN.O 
shares to $22.75 from $21 on strong outperformance
    ** Given the sold-out condition of pumping and the relative
dearth of capacity additions on the way, Piper Sandler sees
incremental rig adds through 2023 outrun completions growth
    ** The brokerage's FY 2023 average U.S. Lower 48 (L48) rig
count of 815 is 16% above current 704, implying a downshift to
2.3 average weekly rig additions over the next year
    ** "We expect that getting meaningfully above 825-850 rigs
next year will begin to test the limits of viable spare capacity
with steeply expanding capex" - Piper Sandler

 (Reporting by Juliette Portala)
 ((juliette.portala@tr.com))