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Researched by Industrial Info Resources (Sugar Land, Texas)--Precision Drilling Corporation (NYSE:PDS) (PDC) (Calgary, Alberta), an oil and gas services provider focused on Canada's shale plays, benefited from strong activity and prices in the second quarter, with the newly expanded Trans Mountain pipeline fueling much of the growth. In fact, company executives warned this trend could result in a Canadian rig shortage sometime in 2025. Industrial Info is tracking more than US$9 billion worth of active projects featuring Precision Drilling's services, more than 70% of which is attributed to projects in Alberta.
Click on the image at right for a graph detailing the top 10 parent companies for projects featuring PDC's services, by total investment value.
PDC's second-quarter success was attributed to its home country, where it averaged 49 active drilling rigs, compared with 42 in second-quarter 2023. This offset lower results in the U.S., where the company's active U.S. rigs dropped to 36 from 51 over the same period. PDC benefited from stronger-than-expected pricing and cost recoveries in both Canada and the U.S., as well as higher ancillary revenues and improved cost performance.
"The U.S. drilling rig count has declined 15% over the past year," said Carey Ford, the chief financial officer of PDC, in a quarterly earnings-related conference call. "While this data point is typically used as a proxy for broader oilfield service activity and financial performance, this is not the case for Precision, as we have achieved year-over-year growth in consolidated second-quarter revenue, driven by substantial growth in international drilling, Canadian drilling, and completion and production services."
Nonetheless, the highest-valued project involving PDC's services is found in the U.S., albeit from a Canadian-based company: Baytex Energy Corporation's (NYSE:BTE) (Calgary) US$552 million crude-drilling expansion at its development in Karnes City, Texas, which builds on a US$130 million expansion in 2023 by adding new well pads and drilling 20 new wells to a depth of more than 3,300 meters in the Eagle Ford Shale. Subscribers to Industrial Info's Global Market Intelligence (GMI) Oil & Gas Project Database can learn more from a detailed project report.
About 25% of the Canadian project investment involving PDC is in Alberta's Montney Shale, where Veren Incorporated (NYSE:VRN) (Calgary) is at work on a string of drilling programs, including its US$224 million development in the Kaybob Duvernay South Field, about 20 miles south of Whitecourt. Veren is drilling about 20 new wells to bring the Kaybob Duvernay's total output to more than 50,000 barrels of oil equivalent per day (BOE/d). Subscribers can learn more from a detailed project report.
Canada is among the four biggest crude oil producers worldwide, with its annual production in 2023 marking a third consecutive year of growth, according to Statistics Canada. Veren, formally called Crescent Point, is among its top developers. For more information, see April 3, 2024, article - Canada's Oil Producers Gird for Growth in Alberta, Saskatchewan.
Other major developers in Alberta's Montney include Tourmaline Oil Corporation (Calgary), which is working with PDC on its US$200 million development in the Spirit River Field, about nine miles west of Bridgeview. Tourmaline is drilling about 25 new wells to increase the feed to its Spirit River Plant and a pair of oilfield tank batteries. Subscribers can learn more from a detailed project report.
In November 2023, Tourmaline closed its acquisition of Bonavista Energy Corporation, which expanded its role in southwestern Alberta's Deep Basin and brought its 2023 production to 698 million barrels of oil equivalent.
Subscribers to Industrial Info's GMI Project and Plant databases can click here for a full list of detailed reports for projects mentioned in this article, and click here for a full list of related plant profiles.
Subscribers can click here for a full list of reports for active and planned projects featuring PDC's services.
Industrial Info Resources (IIR) is the leading provider of industrial market intelligence. Since 1983, IIR has provided comprehensive research, news and analysis on the industrial process, manufacturing and energy related industries. IIR's Global Market Intelligence (GMI) platform helps companies identify and pursue trends across multiple markets with access to real, qualified and validated plant and project opportunities. Across the world, IIR is tracking more than 200,000 current and future projects worth $17.8 trillion (USD).
Click on the image at right for a graph detailing the top 10 parent companies for projects featuring PDC's services, by total investment value.PDC's second-quarter success was attributed to its home country, where it averaged 49 active drilling rigs, compared with 42 in second-quarter 2023. This offset lower results in the U.S., where the company's active U.S. rigs dropped to 36 from 51 over the same period. PDC benefited from stronger-than-expected pricing and cost recoveries in both Canada and the U.S., as well as higher ancillary revenues and improved cost performance.
"The U.S. drilling rig count has declined 15% over the past year," said Carey Ford, the chief financial officer of PDC, in a quarterly earnings-related conference call. "While this data point is typically used as a proxy for broader oilfield service activity and financial performance, this is not the case for Precision, as we have achieved year-over-year growth in consolidated second-quarter revenue, driven by substantial growth in international drilling, Canadian drilling, and completion and production services."
Nonetheless, the highest-valued project involving PDC's services is found in the U.S., albeit from a Canadian-based company: Baytex Energy Corporation's (NYSE:BTE) (Calgary) US$552 million crude-drilling expansion at its development in Karnes City, Texas, which builds on a US$130 million expansion in 2023 by adding new well pads and drilling 20 new wells to a depth of more than 3,300 meters in the Eagle Ford Shale. Subscribers to Industrial Info's Global Market Intelligence (GMI) Oil & Gas Project Database can learn more from a detailed project report.
About 25% of the Canadian project investment involving PDC is in Alberta's Montney Shale, where Veren Incorporated (NYSE:VRN) (Calgary) is at work on a string of drilling programs, including its US$224 million development in the Kaybob Duvernay South Field, about 20 miles south of Whitecourt. Veren is drilling about 20 new wells to bring the Kaybob Duvernay's total output to more than 50,000 barrels of oil equivalent per day (BOE/d). Subscribers can learn more from a detailed project report.
Canada is among the four biggest crude oil producers worldwide, with its annual production in 2023 marking a third consecutive year of growth, according to Statistics Canada. Veren, formally called Crescent Point, is among its top developers. For more information, see April 3, 2024, article - Canada's Oil Producers Gird for Growth in Alberta, Saskatchewan.
Other major developers in Alberta's Montney include Tourmaline Oil Corporation (Calgary), which is working with PDC on its US$200 million development in the Spirit River Field, about nine miles west of Bridgeview. Tourmaline is drilling about 25 new wells to increase the feed to its Spirit River Plant and a pair of oilfield tank batteries. Subscribers can learn more from a detailed project report.
In November 2023, Tourmaline closed its acquisition of Bonavista Energy Corporation, which expanded its role in southwestern Alberta's Deep Basin and brought its 2023 production to 698 million barrels of oil equivalent.
Subscribers to Industrial Info's GMI Project and Plant databases can click here for a full list of detailed reports for projects mentioned in this article, and click here for a full list of related plant profiles.
Subscribers can click here for a full list of reports for active and planned projects featuring PDC's services.
Industrial Info Resources (IIR) is the leading provider of industrial market intelligence. Since 1983, IIR has provided comprehensive research, news and analysis on the industrial process, manufacturing and energy related industries. IIR's Global Market Intelligence (GMI) platform helps companies identify and pursue trends across multiple markets with access to real, qualified and validated plant and project opportunities. Across the world, IIR is tracking more than 200,000 current and future projects worth $17.8 trillion (USD).
