Soon to be announced Aramco will spend billions of dollars to develop Manifa.If PKD ends it's dispute with them soon, they will have work for ever. Who is more expert in drilling under technically challenging environment besides PKD.
I have been watching this stock and it is a classic example of the oil drilling business. They have debt and over the past decade they have issued shares which has diluted equity. They are doing well but using generated cash for reinvestment in the business. So, what is the potential and time horizon. Its a guess but, with the current growth in revenue and the demand in the future and given their current mkt price, it looks like a good probability of a $10/$12 price and, if they are bought out, $15/$20 in the next year. Just seems reasonable compared to peers.
I was not turned off by the conference call. I thought they did OK.
I am not in the oil business, any conjecture on their prospects? what is their industry reputation?
PKD has an excellent reputation in this industry. Pretty soon they are going to beat their own record(Stockman Island) by building a rig for BP which will go down more than 40000 feet.Check their presentations.These days all oil companies take advantage the generous depreciation righ-offs to grow assets.Next years EBITDA of 280 million x 5 = 1.4 billion Market cap, twice the current value.. The 5 is the lowest multiple in the industry.