HP upgraded by RBC with 96 as target price

[mingya]

Tier 1 rigs are in tight supply - and sees upward movement likely in the day rates. I think HP is one of those keepers, the story is simple and the company is very well managed. As the emerging plays turn to factory mode, HP rigs get even more important as consistent operations are key to driving down cost and being more efficient. In the downturn, they were able to increase the customer list and once they try a FlexRig, they tend to want more.

One of many Sweet-16 Alumni Keepers

[mdwitte]

Yes, I have a small amount of HP...but it is near it's 52 week high...too late to buy more? So does anyone know who makes the top drives for the HP rigs? Tesco? ...maybe Tesco would be a better investment?

[mdwitte]

OK...found it...NOV has about twice as many top drives in service as TESO...maybe NOV , TESO, AND HP, some of each>

[dan_s]

HP is definitely a "Keeper".

The Sweet 16 are now all E&P companies that have double digit production and proven reserve growth locked in. Since we follow HP on our Drillers Watch List I removed it from the Sweet 16. I still follow it closely since IMO they are the #1 onshore driller in the world. We will update the profile and forecast for HP on a regular basis.

I also like PDS and PTEN.

We update the Driller Watch List at the beginning of each month. You can find it under the Watch List Tab.