On Wednesday, as of this writing, shares of Precision Drilling Corporation (TSE:PD) (NYSE:PDS) are up 6.57% and is currently trading at $2.68. Yahoo Finance has reported Precision Drilling Corporation’s market capitalization to be $794.52 million.
Some might not consider an increase of nearly 10% to be a total surge in price, but taking into consideration that quite a few stocks have plummeted this week due to analysts waiting to see the Houses final vote on the proposed tax bill, Precision Drilling Corporation should consider itself lucky to be grouped into the stocks that benefited from the bill this week.
With that being said, Wednesday’s increase in price is not solely due to the tax bill, as the Canadian company has had a successful few weeks. For starters, on December 4, Precision Drilling Corporation unveiled a 2018 capital expenditure plan of $94M. This plan is comprised of $32 million to improve existing rigs and $62 million for infrastructure and upkeep. In terms of improving existing rigs, Precision announced that the plan includes roughly 10 to 20 upgrades to the rig fleet.
Additionally, Precision Drilling just selected a new member to its Board of Directors: Michael R. Culbert. Again, this might not seem like a game-changing announcement, but Culbert has more than thirty years experience working in this sector, so it is thought that he will help Precision bring the luck it is experiencing right now into the new year.
As of right now, analysts have given Precision Drilling a mean recommendation rating of 1.90. This rating is based on a scale of 1 to 5, with a rating of less than 2 signifying a ‘buy’ rating, and a rating within the 5 range signifying a “strong sell” rating.
For those who don’t know, Precision Drilling provides High Performance, High-Value services to the gas and oil sector, all of which are extremely safe. Based in the beautiful Canadian Province of Alberta, Precision provides customers with vast access to contract drilling rigs as well as wastewater treatment units.
As we move into 2018, it will be interesting to see if the cryptocurrency sector maintains the control it has over the market right now or if another sector will take over. For the sake of oil and gas investors, I hope Precision Drilling is able to put its name in the running.
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