Short Term Buy Removed By UBS On Land Drillers

After a strong start to the year with the natural gas rig count up 40% off its July 2009 bottom UBS believes the rate of change for land drillers will begin to slow over the coming months.

More importantly, they stated that there is a growing risk for a flattening or double dip in the US land gas rig count if gas production begins to be added late this year and natural gas prices soften.

Equities such as NBR and PTEN has lagged behind oil drillers such as DO, and will probably need a pop in the natural gas market to turn the tide.