Precision Drilling Corporation (PDS) – the largest drilling contractor of Canada − is set to offer senior unsecured notes worth $400.0 million. The company expects the notes to mature by 2024. The offering’s net proceeds will likely be utilized by the company for normal corporate activities and manufacturing new rigs.
In a separate press release, Precision Drilling declared that it has entered into a deal with one of its Middle East customers. Per the contract, Precision Drilling will deploy a new-build rig of 1500 horsepower capacity. The rig will likely be deployed by mid 2015. Since mid 2012, the company has sent altogether nine rigs in the Middle East. Precision Drilling added that the expenses incurred while constructing the rig in 2014 is part of its 2014 capital expenditure program declared in April.
Last month, Precision Drilling declared its first-quarter 2014 results. The company’s earnings per share came in at 32 cents, which failed to beat the Zacks Consensus Estimate of 33 cents. Significant increase in the company’s operating expenses hurt the results.
Precision Drilling currently holds a Zacks Rank #3 (Hold), implying that it is expected to perform in line with the broader U.S. equity market over the next one to three months.
Meanwhile, one can look at better-ranked players in the oil and gas drilling sector like Pioneer Energy Services Corp. (PES), Helmerich & Payne Inc. (HP) and Patterson-UTI Energy Inc. (PTEN). Pioneer Energy Services sports a Zacks Rank #1 (Strong Buy), while Helmerich & Payne and Patterson-UTI Energy carry a Zacks Rank #2 (Buy).
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
To read this article on Zacks.com click here.
Get all Zacks Research Reports and be alerted to fast-breaking buy and sell opportunities every trading day.
Be the first to comment