The Successful Investor Hotline – Friday, March 28, 2014

Article Excerpt

PRECISION DRILLING CORP., $12.89, Toronto symbol PD, announced two new contracts this week. The first is a multi-year deal with a client in the Middle East to build a Super Triple drilling rig, which can reach deeper pockets of oil and natural gas than Precision’s regular rigs. The company will deliver this rig in the fourth quarter of 2014. The second is a multi-year contract to supply six rigs to a project in Mexico. The company didn’t say how much these deals are worth, but they help cut its reliance on Canada and the U.S., which accounted for 93% of its 2013 revenue of $2.0 billion. In addition, Precision announced that it now expects to spend $634 million to build and upgrade rigs in 2014, up 23.1% from its earlier forecast of $515 million. That’s due to stronger-than-anticipated drilling activity and rig demand. Precision Drilling is a buy. Please make sure you are logged in to your account to access these articles. Click here if you’ve…