AKITA Drilling Ltd T.AKT.A

RJ comments on PD: Drilling Rig Market in Canada is Sold Out

[Hockeyz]

 

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

[mjh9413]

New here. Why does comment on sold out not jibe for AKI?eom

[blindpig]

According to PD they have 98 rigs in Canada operational and peak usage q1 was 83 for 85% and average was 69 for 70%.  So close be 100% usage at peak requirement in the strong winter period.  PD has 173 registered rigs in Canada so only talking active rigs. Probably the inactives are mostly lower quality rigs that may never come back on the market.  Aktita was 42% utilization on 17

[Hockeyz]

From Precision Drilling (PD) June'24 investor presentation, it calls its Canadian fundamentals the strongest in a decade. From the Precision Drilling Q1’24 quarterly report, the outlook for North America energy is positive as global demand continues to rise, while geopolitical issues continue to threaten supply. In Canada, the imminent start-up of the Trans Mountain pipeline expansion

[Hockeyz]

PD (Precision Drilling) is sold out due to the start-up of the Trans Mountain pipeline expansion, followed by LNG Canada, all supporting substantially increased Canadian drilling activity for oil and gas. About a month ago, Akita had line of sight to running at least 11 rigs (of the 17 drilling rigs in Canada) in Canada by August. In the last month, Akita probably has had a large increase in