Before you wig out about today's pullback in natural gas, consider Grey Wolf's
In the first quarter, Grey Wolf's fleet saw a dayrate decline, because some higher-priced contracts rolled over at today's lower rates. Yes, I know I said rates were headed higher. They're still well below levels seen some two years ago, though. Rig margins were quite strong at 44%, and bottom-line earnings came in at around $31 million.
If you're uncomfortable with Grey Wolf's lopsided exposure to natural gas drilling, there are two developments worth mentioning. First is the proposed merger with Basic Energy Services
Grey Wolf is often placed on the defensive by having its older rigs compared unfavorably to Helmerich & Payne's