PTEN up 35%?
Posted: Wed Aug 28, 2013 10:31 am
Barron's: Patterson-UTI shares could jump 35% • 10:38 AM
-Shares of Patterson-UTI Energy (PTEN +2.6%) have shed 20% since March, as the recovery of the drilling rig market has taken longer than expected, but Barron's David Englander thinks PTEN could jump 35% from current levels.
-While the rig market remains weak, the worst may be over: Rigs declined by only 7% Q/Q, and PTEN said in its July 25 earnings report it had seen an increase in contracting activity in recent weeks.
-PTEN has enjoyed strong demand for its APEX rigs, with utilization levels of 96%, well above the industry average; pressure pumping sales remain strong.
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-Shares of Patterson-UTI Energy (PTEN +2.6%) have shed 20% since March, as the recovery of the drilling rig market has taken longer than expected, but Barron's David Englander thinks PTEN could jump 35% from current levels.
-While the rig market remains weak, the worst may be over: Rigs declined by only 7% Q/Q, and PTEN said in its July 25 earnings report it had seen an increase in contracting activity in recent weeks.
-PTEN has enjoyed strong demand for its APEX rigs, with utilization levels of 96%, well above the industry average; pressure pumping sales remain strong.
Read comments