Onshore Drillers

dan_s · Post by **dan_s** » Tue Apr 30, 2013 9:39 am

From Credit Suisse report dated April 30: "We remain Underweight on the Land Drilling sector. We are raising estimates of HP and PTEN and lowering estimates for NBR and PDS. We are increasing the target price for PTEN to $23."

"The upside potential in 2Q13 will come from sustained high
natural gas prices and the Marcellus will be the first region to benefit. We
estimate that PTEN and PDS have the top two market shares in the basin.
Year to date the Marcellus rig count has been flat which means PTEN and
PDS have been replacing competitor rigs. The Eagle Ford and Permian
Basins are other likely hot spots in 2013."

In my opinion, the onshore drillers may struggle for a couple more quarters but higher NG prices as we approach next winter should light a fire under this group. - Dan