Precision Drilling Trust's
As I recently illustrated in tabular form, business is lousy for Precision Drilling, Patterson-UTI
Rather than end up like DryShips
Shareholders are taking the move in stride. It may help that all the former Grey Wolf shareholders who are still on board were never in it for the dividends anyway. Most operators in this space, from Nabors Industries
Precision Drilling also announced today that it's issuing both more equity (in the form of additional trust units) and new senior debt. These funding sources will combine to pay off the company's takeover-related $400 million bridge loan, so there's no need to worry that it's digging itself deeper here. Quite the opposite.
Finally, if you're wondering why Precision Drilling would shell out $164 million of expansion capital in this kind of environment, I would just point out that every newbuild rig has a long-term contract in hand. Some of these will be shuffled around. EOG Resources