Drilling Fleet - Fox Drilling - (Hidden Value)In March 2020 PD Percision Drilling was trading for $8 dollars a share, now it is trading for close to 90 dollars a share.
So the value of those rigs has gone up a lot, as well as the value of Drilling companies almost as much as some oil and gas companies.
Percision is paying off mountains of debt, but POU has not debt and Fox drilling is a state of the art drilling company, that know just exactly how POU want the wells drilled, because they work for them and drill all their wells.
Do you think they have an advantage with tigher integration with a drilling company, of course their is, but they also have a scheduling advantage, and a cost advantage.
All of a sudden Fox Drilling looks like a pretty nice asset to have on the balance sheet, and it is likely worth a lot more than the 60 MILLION they have in book value.
My guess the walking rigs could be worth 20-25 million if you can find one for sale. My uneducated guess is that Fox drilling is likely worth at least 120 million today and just futher illustrates the deep value of POU assets.
At least a 60 million dollar upside, plus the best crews in the industry.
IMHO