Precision Drilling Trust
Revenue in the quarter dropped 35% on a 12% slip in dayrates and, more significantly, Canadian field activity was one-third lower. Operating income was cut nearly in half, and cash distributions to unitholders were cut by 58%. With the weakness in Precision's shares, the stock still boasts quite the outsized yield, north of 8%. That should make it a bit easier to wait out the Western Canadian weakness, which doesn't look set to reverse course anytime soon.
Alberta's new taxation gambit doesn't help matters much. Everyone from EnCana
Though Precision has a commanding market share in Canada, it's not bound to keep its rigs there. The U.S. fleet has grown from two to eight rigs working near full utilization. That number will jump to a dozen by year's end. Neveu stated clearly that U.S. growth will not slow down going forward, and may even heat up.
The lower 48 is no promised land, but it's still promising. There remains a strong market for those with "smart iron" -- newer rigs than can drill faster, safer, and cheaper. Precision's Super Single can go toe-to-toe with the best that Helmerich & Payne