TSE:PD

Precision Drilling (PD.TO)

110.18
-2.07 (1.84%)
as of Jun 26, 2026, 8:00:00 pm Market Open.
186 watching
0
Investor Insights
star iconJun 27, 2026, 12:00 am

This summary was created by AI, based on 3 opinions in the last 12 months.

Precision Drilling (PD-T) is positioned favorably in the current market, with experts indicating a rising trend in oil activity that could lead to a 5-10% pricing increase by 2027. The company has shown strong performance, benefiting from strategic actions such as achieving its debt targets and planning a 50% return of capital to shareholders, as well as a notable 20% free cash flow yield projected for the coming year. Furthermore, the anticipated sanctioning of LNG Canada may contribute to a continued rally in the stock. While there are concerns about the timing of investing in service stocks, the general sentiment about Precision Drilling remains positive, particularly with its pronounced leverage to US natural gas, which is expected to see significant demand growth. Overall, the company is characterized as well-run and a strong player in the pure-play oil sector amidst the current energy landscape.

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Consensus
Positive
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Valuation
Undervalued
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Similar
CDEV
DON'T BUY
Many companies are pulling back drilling expectations for next year. This could make it very difficult.
DON'T BUY
This is a tough one for him. With the distributions coming out, they balance sheet is actually falling on his quantitative model. The model price is around $25, but we'll get hit with taxes in 2 years. Probably trading in line. Doesn't see any big upside
COMMENT
He tends to avoid the service sector except for production related companies rather than exploration companies. Good balance sheet. This one will suffer more in down periods, but will recover more quickly.
COMMENT
Generally doesn't like this one, but it has fallen so far it might be worth looking at.
DON'T BUY
If you own, you are getting close to the point where you can average down. Wait until you see some signs of natural gas basing. That could be as long as a year from now.
WAIT
Looking at this one very closely. Have cut distributions twice. Canadian drilling has been very bad. 3% of their rigs are in the US, but has accounted for 17% of their EBITDA. Outlook for earnings is very poor and the earnings are very close to the distribution.
WAIT
Had a big drop and the prices are starting to look attractive again. Very Conservative payout ratio. Would wait to see where gas prices are going.
HOLD
Softer natural gas prices have decreased drilling activities. This company will have the most upside should this cycle change.
BUY
The oilfield services have been beaten up and are trading near their bottoms. Good entry point and the support is strong. Not a lot of volume right now. Exit if it goes below $25.
DON'T BUY
His model price on this is $35.60 giving a 30% differential, which will disappear in 2 years, so are trading at what their future earnings are. (See “Today’s Commentary”.)
DON'T BUY
Foreign exchange is moving against them. Be cautious on this name. Good long term hold, but don't be in any rush to jump in.
WAIT
He likes it. It's suffering along with all the other drilling companies. Thinks it will pick up next year.
BUY
Has been hit by a 20% drop in utilization rates for all of the drillers. This one is the 100 lb. gorilla with a 30% market share. With a normalized winter, they should be a pickup in drilling activity. Could be a consolidator and continue to grow their market share.
WAIT
A play on natural gas. Current price is displaying some optimism in the market. Don't look for good news out of their quarterly reports until this winter. Price has gone up on speculation about M7A activity. All the good news is fully factored in. Wait for the summer doldrums.
HOLD
In the US they have not backed off drilling, while in Canada they have.
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