Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Gold/Mining/Energy : Strictly: Drilling and oil-field services -- Ignore unavailable to you. Want to Upgrade?

To: Bearcatbob who wrote (63635)	4/2/2000 8:51:00 PM
From: Archie Meeties	Respond to of 95453

Land driller laggard. T.BOU, Bonus Resource Services (needs a sexier name) Canadian land driller. 101 singles, 103 doubles, a few swab rigs 20% of Western Sed. Basin market. 8 doubles in Aus. (they claim this is 50% of the Australian market) 1997 peak year. 106.9% utilization (overtime, I suppose) of 146 rigs 0.33 eps vs. 0.09 in 96 Peak multiple 20-25x expected earnings. 99 cycle bottom 53.8% utilization loss of 0.12 went on a shopping spree past two years, acquiring mom and pop drillers like "Canuck drilling". Bigger picture in Canada. Delay in winter freeze up reflected in 99 Nov, Dec rig counts. Nov 336 Dec 385 (late freeze up) Jan 502 Feb 544 Compared to 1997 Nov 445 Nov 486 Jan 481 Feb 507 Rig demand from Nov Dec carried over to summer/fall where possible, or moved to 2000-2001 season, making for tight conditions during nov-feb. That and the opening of the alliance pipeline in Nov-Oct should make for a hot Canadian drilling year. Of course this is all good for PDS as well, but PDS not as badly lagging as Bonus. Could make an argument that PDS is lagging vs. US peers, as it should considering freeze up delays. Critiques of BOU appreciated.