Precision Drilling Corp T.PD

Canaccord Genuity's Focus List

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Precision Drilling* (PD : TSX : $11.78), Net Change: 0.33, % Change: 2.88%, Volume: 3,004,570

Precision Drilling* (PDS : NYSE : US$12.07), Net Change: 0.26, % Change: 2.20%, Volume: 3,118,439

I'm a first round pick. Canaccord Genuity Oilfield Services Analyst John Tasdemir placed Precision Drilling on Canaccord

Genuity's Focus List yesterday. Tasdemir says the winter drilling season in Canada has been stronger than he expected as

drilling rig activity YTD is up 17% over the same period least year, outpacing his 10% forecast. Tasdemir continues to like

PD’s position as the most active driller in North America; it has the second highest mix of high-performance rigs (68% of fleet)

and currently has over 60% of its fleet drilling for liquids and 80% drilling horizontally. Tasdemir has named PD as his top pick

as he believes the company's valuation is relatively attractive (trades at 5.4x 2012E EV/EBITDA vs. Helmerich & Payne (HP)

and Nabors Industries (NBR) closer to 6.1x) given its mix of high performance rigs, near-term earnings growth, and longerterm

position as to capture market share with its new rigs technology. Tasdemir goes on to highlight that dayrates improved by

$636 year over year in Canada and $510 quarter over quarter in the U.S. in Q4/10, and he expects spot dayrates will continue to

improve in Canada in 2011 with modest increases in the U.S. Continued demand for high performance rigs led PD to increase

its 2011 capex budget to $423 million. The company plans to build five additional new builds and upgrade 8-12 rigs. Tasdemir

believes numbers could move higher as PD benefits from increasing oil-directed activity in Canada, higher demand for its

Completion and Production services, impact from new builds and upgrades, and higher drilling dayrates.