RJ comments on PD: Drilling Rig Market in Canada is Sold Out
https://www.bnnbloomberg.ca/commodities/video/cenovus-inches-ahead-of-rivals-analyst~2935979
Michael Barth (Equity Analyst at Raymond James) comments on PD (Precision Drilling), strong buy. The comments start at the 5 minute 20 second mark. Firstly, he says the drilling market in Canada is as tight as it has been in a very long time. They are sold out. Secondly, the current rig count in the U.S. is barely enough to hold oil and gas production flat and we think production growth is needed. LNG capacity coming on-line of 10 bcf/day incremental demand through 2028 and risk is skewed to the upside for drilling demand/rig count in the U.S., which will increase margins and profits for the drillers. Also, balance sheets have not been this strong for many years.
https://www.bnnbloomberg.ca/commodities/video/cenovus-inches-ahead-of-rivals-analyst~2935979