Grey Wolf a Buy on Merger - Analyst Blog
Grey Wolf (
GW) reported solid third quarter results on the back of still-strong dayrates and the highest number of average rig count in its history. The company averaged 112 operational rigs during the quarter, up from 105 rigs in the previous quarter.
Importantly, the pending merger with
Precision Drilling Trust (
PDS) remains on track. The combined entity, to be called Precision Drilling, will be a North American land drilling powerhouse with 371 rigs.
We have lowered our estimates to reflect the expected soft demand outlook for onshore activities in the current low commodity-price environment. Our new 2008 and 2009 EPS estimates are $0.64 and $0.69, down from $0.67 and $0.78, respectively. Our Buy recommendation remains unchanged.
Related Stories
The above story is the opinion of the author only and it does not reflect
iStockAnalyst opinion. Further, the author is not personally advising you
regarding the suitability of the story for your investment needs. In no event
iStockAnalyst will be liable for any loss or damage including without
limitation, indirect or consequential loss or damage, or any loss or damage
whatsoever arising from or arising out of, or in connection with the use of this
information. Please consult your investment advisor before making any investment
decision.
