TSE:PD

Precision Drilling (PD.TO)

124.62
-2.81 (2.21%)
as of Sep 4, 2026, 8:00:00 pm Market Open.
186 watching
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Investor Insights
star iconSep 4, 2026, 12:00 am

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

Precision Drilling is poised to benefit significantly from the rising activity levels in the oil sector, with experts predicting a price increase of 5-10% leading into 2027. The company has made substantial strides, particularly with the recent approval of the LNG Canada project, which has prompted a positive market response. Its achievements in meeting debt targets have allowed it to focus on returning capital to shareholders, with plans to buy back 10% of its stock. Analysts note that Precision Drilling's free cash flow yield for the upcoming year is approximately 20%, indicating a compelling investment opportunity. Additionally, the company possesses strong leverage to the growing demand for US natural gas, positioning it well for future growth as the market expands.

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Consensus
Positive
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Valuation
Undervalued
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Similar
WMB
HOLD
Company had other problems as well, with the fall of natural gas prices. Given the Capital Expenditures cuts by some of the expiration companies, their cash flow was destined to decline anyways.
BUY
The longer-term outlook is quite positive based on today's price. Trading at, or slightly below their corporate peers. Their short-term fortunes are going to be determined by the price of gas.
BUY ON WEAKNESS
Very good 3rd quarter results, slightly above analysts expectations. Some concerns on a possible distribution cut next year. Conservative management. By on weakness.
DON'T BUY
Expects cutbacks in drilling programs over the next year. As one of the largest, but older fleets out there. As companies cut back their drilling, they will move newer and better drilling rigs on to their properties.
TOP PICK
Debt-free and has an attractive yield. Expanding into the US. Well run. A defensive kind of oil play.
BUY
Every time there is a cyclical downturn in natural gas, investors think there will be no more drilling. There will be, and they're giving stocks away. This includes all the drillers such as Ensign (ESI-T), Precision Drilling (PD.UN-T) and Calfrac Well Services (CFW-T).
BUY
One of the blue-chip names. Has dropped from around $40 to about $33. Under $33 is not a bad purchase. Cyclical. 10% yield.
DON'T BUY
He has been de-emphasising the oil service side in the current environment. When commodity prices start to fluctuate like there has been, service companies tend to get hit fairly hard.
HOLD
Has been a lot of pressure on drillers because of the price decline in natural gas. Looking out 2-3 years, they should fare quite well, but in the very short term, this and other drilling companies may take some further heat. Doesn't think the distribution is at risk.
WAIT
Has come off with the other services stocks. Basically, it will stay soft/weak as long as the energy picture is slightly negative. Feels it will be a great buying opportunity sometime in the next few months.
PAST TOP PICK
(A Top Pick Aug 16/06. Down 20%.) A little more concerned about drilling companies then he was. Still holding.
HOLD
Industry is slowing down. Predicts a little more downside. Stay with it if you own. Entry point should be a little lower than here. Long term you will see over $40.00.
TOP PICK
Good time to buy Precision drilling. In the next year they will be drilling at full capacity. In the long term it will be a good investment.
HOLD
Has a great yield, if you own it hold onto it. This stock is dependent on the weather and gas prices.
DON'T BUY
With natural gas dropping, drilling will have to pull back. Shorter term, this is not good for this company. Great company, great long-term fundamentals.
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