Precision Drilling (NYSE:PDS) Stock, Quote.Headers.trade-ideas

Precision Drilling

Precision Drilling Corpd is a provider of contract drilling and completion and production services to oil and natural gas exploration and production companies in Canada, the United States and certain international locations. Contract Drilling Services include drilling rigs, procurement and distribution of oilfield supplies, and the manufacture, sale and repair of drilling equipment. Completion and Production Services include service rigs, oilfield equipment rental, and camp and catering services.

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Momentum investing is essentially the opposite of the tried-and-tested Wall Street adage -- &#34;buy low and sell high.&#34; Investors following this investing style typically avoid betting on cheap stocks and waiting long for them to recover. They believe instead that one could make far more money in lesser time by &#34;buying high and selling higher.&#34;

Despite Fast-Paced Momentum, Precision Drilling Is Still a Bargain Stock

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Precision Drilling sees a surge in shares as Q4 results reveal C$506.9 million in revenues, driven by increased North American and international activity, with adjusted EBITDA hitting C$151.2 million. CEO Kevin Neveu outlines a bullish outlook, anticipating a 40% Y/Y increase in international rig count, driven by term contracts in Kuwait and Saudi Arabia. The company aims to reduce debt and allocate significant portions of free cash flow to share repurchases.

Precision Drilling Shares Are Rocketing Today: What&#39;s Going On?

Intraday Update

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U.S. stocks traded higher, with the Dow Jones gaining around 100 points on Friday. Here are some big stocks recording gains in today’s session.

Smartsheet, Kroger, Lantronix And Other Big Stocks Moving Higher On Friday

Precision Drilling Corporation Common Stock

Precision Drilling Corp

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Momentum investing is essentially the opposite of the tried-and-tested Wall Street adage -- &quot;buy low and sell high.&quot; Investors following this investing style typically avoid betting on cheap stocks and waiting long for them to recover. They believe instead that one could make far more money in lesser time by &quot;buying high and selling higher.&quot;
Who doesn&#39;t like betting on fast-moving trending stocks? But determining the right entry point isn&#39;t easy. Often, these stocks lose momentum once their valuation moves ahead of their future growth potential. In such a situation, investors find themselves loaded up on expensive shares with limited to no upside or even a downside. So, going all-in on momentum could be risky at times.
A safer approach could be investing in bargain stocks with recent price momentum. While the Zacks Momentum Style Score helps identify great momentum stocks by paying close attention to trends in a stock&#39;s price or earnings, our &#39;Fast-Paced Momentum at a Bargain&#39; screen comes handy in spotting fast-moving stocks that are still attractively priced.
Precision Drilling (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/pds#NYSE">PDS</a>) is one of the several great candidates that made it through the screen. While there are numerous reasons why this stock is a great choice, here are the most vital ones:
A dash of recent price momentum reflects growing interest of investors in a stock. With a four-week price change of 4.2%, the stock of this oilfield services company is certainly well-positioned in this regard.
While any stock can see a spike in price for a short period, it takes a real momentum player to deliver positive returns for a longer time frame. PDS meets this criterion too, as the stock gained 5.9% over the past 12 weeks.
Moreover, the momentum for PDS is fast paced, as the stock currently has a beta of 2.03. This indicates that the stock moves 103% higher than the market in either direction.
Given this price performance, it is no surprise that PDS has a Momentum Score of B, which indicates that this is the right time to enter the stock to take advantage of the momentum with the highest probability of success.
In addition to a favorable Momentum Score, an upward trend in earnings estimate revisions has helped PDS earn a Zacks Rank #1 (Strong Buy). Our research shows that the momentum-effect is quite strong among Zacks Rank #1 and #2 stocks. That&#39;s because as covering analysts raise their earnings estimates for a stock, more and more investors take an interest in it, helping its price race to keep up.
Most importantly, despite possessing fast-paced momentum features, PDS is trading at a reasonable valuation. In terms of Price-to-Sales ratio, which is considered as one of the best valuation metrics, the stock looks quite cheap now. PDS is currently trading at 0.75 times its sales. In other words, investors need to pay only 75 cents for each dollar of sales.
So, PDS appears to have plenty of room to run, and that too at a fast pace.
<a href="https://www.zacks.com/stock/news/2327475/despite-fast-paced-momentum-precision-drilling-pds-is-still-a-bargain-stock?cid=CS-BENZ-FT-tale_of_the_tape|fast_paced_momentum_at_a_bargain-2327475">To read this article on Zacks.com click here.</a>

RBC Capital analyst Keith Mackey maintains Precision Drilling (TSX:<a class="ticker" href="https://www.benzinga.com/stock/PD#TSX">PD</a>) with a Outperform and raises the price target from C$122 to C$125.

Price Target

TSX:PD

RBC Capital Maintains Outperform on Precision Drilling, Raises Price Target to C$125

Piper Sandler analyst Luke Lemoine maintains Precision Drilling (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/PDS#NYSE">PDS</a>) with a Overweight and lowers the price target from $101 to $95.

Piper Sandler Maintains Overweight on Precision Drilling, Lowers Price Target to $95

Piper Sandler analyst Luke Lemoine maintains Precision Drilling (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/PDS#NYSE">PDS</a>) with a Overweight and raises the price target from $81 to $101.

Piper Sandler Maintains Overweight on Precision Drilling, Raises Price Target to $101

Precision Drilling (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/PDS#NYSE">PDS</a>) reported quarterly earnings of $1.88 per share which missed the analyst consensus estimate of $2.63 by 28.63 percent. The company reported quarterly sales of $391.580 million which missed the analyst consensus estimate of $530.500 million by 26.19 percent. This is a 5.23 percent decrease over sales of $413.211 million the same period last year.

Earnings Misses

Precision Drilling Q1 2024 GAAP EPS $1.88 Misses $2.63 Estimate, Sales $391.580M Miss $530.500M Estimate

RBC Capital analyst Keith Mackey reiterates Precision Drilling (TSX:<a class="ticker" href="https://www.benzinga.com/stock/PD#TSX">PD</a>) with a Outperform and maintains C$122 price target.

Reiteration

RBC Capital Reiterates Outperform on Precision Drilling, Maintains C$122 Price Target

Precision Drilling Corp&nbsp;(NYSE:<a class="ticker" href="https://www.benzinga.com/stock/PDS#NYSE">PDS</a>) shares are surging today after it reported&nbsp;<a target="_blank" href="https://www.benzinga.com/pressreleases/24/02/g36950232/precision-drilling-reports-2023-fourth-quarter-and-year-end-unaudited-financial-results" rel="noreferrer noopener">fourth-quarter FY23 results</a>.
Revenues fell 0.7% Y/Y to C$506.9 million in the quarter. Contract Drilling Services revenue declined 1.5% Y/Y to C$446.5 million, while Completion and Production Services revenue increased 5.4% Y/Y to C$62.5 million.
Drilling rig utilization days declined 25% Y/Y in the U.S. and 3% Y/Y in Canada, while international drilling rig utilization days grew 26% Y/Y.
Adjusted EBITDA increased to C$151.2 million from C$91.1 million in the quarter.
EPS stood at C$9.81, a significant&nbsp;<a target="_blank" href="https://www.benzinga.com/calendars/earnings" rel="noreferrer noopener">increase from C$0.27 a year ago</a>.
Operating cash flow came in at C$170.3 million from C$159.1 million the prior year quarter. Capital expenditures stood at C$79 million compared with C$57 million a year ago.&nbsp;
The company currently has 45 active rigs in the U.S., 64 in Canada and 8 internationally.
Kevin Neveu, President and CEO, said, &#8220;Internationally, we recertified and reactivated four Kuwait rigs in 2023 and now have eight active rigs working in the Kingdom of Saudi Arabia and Kuwait. With these additional rigs, we expect our activity to increase approximately 40% year over year and provide predictable future cash flow as the majority of these rigs are under five-year term contracts that extend into 2027 and 2028.&#8221;&nbsp;
Outlook: The company expects to reduce debt by C$150 million to C$200 million in 2024 and allocate 25% to 35% of free cash flow before debt repayments&nbsp;<a target="_blank" href="https://www.benzinga.com/calendars/guidance" rel="noreferrer noopener">toward share repurchases</a>.
Moreover, it plans to lower debt by another C$100 million by the end of 2026 and continue to shareholder capital returns of 50% of free cash flow.
Precision Drilling projects its average active international rig count to increase by around 40% Y/Y in the year.
Price Action: PDS shares are up 9.53% at $64.58 on the last check Tuesday.

Precision Drilling Shares Are Rocketing Today: What's Going On?

Precision Drilling (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/PDS#NYSE">PDS</a>) reported quarterly earnings of $7.20 per share which beat the analyst consensus estimate of $1.79 by 302.29 percent. This is a 3500.5 percent increase over earnings of $0.20 per share from the same period last year. The company reported quarterly sales of $372.42 million which beat the analyst consensus estimate of $360.98 million by 3.17 percent. This is a 2.01 percent decrease over sales of $380.07 million the same period last year.

Precision Drilling Q4 GAAP EPS $7.20 Beats $1.79 Estimate, Sales $372.42M Beat $360.98M Estimate

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Earnings Scheduled For February 6, 2024

Precision Drilling Says Reduced Total Debt By $152 Million In 2023, Says It Added 18 High-quality Drilling Rigs To Fleet And Decommissioned 27 Legacy Rigs In Q4

National Bank Financial Inc analyst Dan Payne downgrades Precision Drilling (TSX:<a class="ticker" href="https://www.benzinga.com/stock/PD#TSX">PD</a>) from Outperform to Sector Perform and announces C$135 price target.

Downgrades

National Bank Financial Inc Downgrades Precision Drilling to Sector Perform, Announces C$135 Price Target

Precision Drilling (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/PDS#NYSE">PDS</a>) reported quarterly earnings of $1.08 per share which missed the analyst consensus estimate of $1.61 by 32.92 percent. This is a 30.77 percent decrease over earnings of $1.56 per share from the same period last year. The company reported quarterly sales of $333.02 million which missed the analyst consensus estimate of $336.59 million by 1.06 percent. This is a 1.18 percent increase over sales of $329.15 million the same period last year.

Precision Drilling Q3 EPS $1.08 Misses $1.61 Estimate, Sales $333.02M Miss $336.59M Estimate

Precision Drilling (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/PDS#NYSE">PDS</a>) is set to give its latest quarterly earnings report on Thursday, 2023-10-26. Here's what investors need to know before the announcement.
Analysts estimate that Precision Drilling will report an earnings per share (EPS) of $1.61. 
Precision Drilling bulls will hope to hear the company announce they've not only beaten that estimate, but also to provide positive guidance, or forecasted growth, for the next quarter.
New investors should note that it is sometimes not an earnings beat or miss that most affects the price of a stock, but the guidance (or forecast).
<h3>Historical Earnings Performance</h3>
Last quarter the company beat EPS by $0.21, which was followed by a 4.3% increase in the share price the next day.
Here's a look at Precision Drilling's past performance and the resulting price change:

<table>
<thead>
<tr>
<th>Quarter</th>
<th>Q2 2023</th>
<th>Q1 2023</th>
<th>Q4 2022</th>
<th>Q3 2022</th>
</tr>
</thead>
<tbody>
<tr>
<td>EPS Estimate</td>
<td>1</td>
<td>3.07</td>
<td>3.21</td>
<td>0.98</td>
</tr>
<tr>
<td>EPS Actual</td>
<td>1.21</td>
<td>4.12</td>
<td>0.20</td>
<td>1.56</td>
</tr>
<tr>
<td>Price Change %</td>
<td>4.3%</td>
<td>-3.9%</td>
<td>4.64%</td>
<td>6.69%</td>
</tr>
</tbody>
</table>

<img src="https://www.benzinga.com/files/images/story/2023/1698260477_0.png" alt="eps graph" />
<h3>Stock Performance</h3>
Shares of Precision Drilling were trading at $60.24 as of October 24. Over the last 52-week period, shares are down 9.74%. Given that these returns are generally negative, long-term shareholders are likely upset going into this earnings release. 
<a href="https://www.benzinga.com/quote/PDS/earnings">To track all earnings releases for Precision Drilling visit their earnings calendar on our site.</a>
This article was generated by Benzinga's automated content engine and reviewed by an editor.

Earnings Preview For Precision Drilling

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Shares of oil, gas and energy services stocks are trading lower amid a drop in oil prices.

RBC Capital analyst Kurt Hallead maintains Precision Drilling (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/PDS#NYSE">PDS</a>) with a Outperform and raises the price target from C$118 to C$125.

RBC Capital Maintains Outperform on Precision Drilling, Raises Price Target to $125

RBC Capital analyst Keith Mackey maintains Precision Drilling (TSX:<a class="ticker" href="https://www.benzinga.com/stock/PD#TSX">PD</a>) with a Outperform and raises the price target from C$118 to C$125.

U.S. stocks traded higher, with the Dow Jones gaining around 100 points on Friday. Here are some big stocks recording gains in today&rsquo;s session.
<ul>
<li>Lantronix, Inc. (NASDAQ: <a class="ticker" href="https://www.benzinga.com/stock/ltrx#NASDAQ">LTRX</a>) shares jumped 26.3% to $5.05 following better-than-expected quarterly sales.</li>
<li>Smartsheet Inc. (NASDAQ: <a class="ticker" href="https://www.benzinga.com/stock/smar#NASDAQ">SMAR</a>) rose 14.1% to $46.04 after the company reported a second-quarter earnings beat and issued strong guidance.</li>
<li>Smith &amp; Wesson Brands, Inc. (NASDAQ: <a class="ticker" href="https://www.benzinga.com/stock/swbi#NASDAQ">SWBI</a>) shares gained 13.5% to $11.94 after the company reported better-than-expected financial results.</li>
<li>Gatos Silver, Inc. (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/gato#NYSE">GATO</a>) jumped 13% to $5.25. Canaccord Genuity upgraded Gatos Silver from Hold to Buy and raised the price target from $5 to $5.5.</li>
<li>Guidewire Software, Inc. (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/gwre#NYSE">GWRE</a>) surged 12.2% to $95.23 following quarterly results.</li>
<li>CymaBay Therapeutics, Inc. (NASDAQ: <a class="ticker" href="https://www.benzinga.com/stock/cbay#NASDAQ">CBAY</a>) jumped 11.1% to $16.67. Raymond James maintained CymaBay Therapeutics with a Strong Buy and raised the price target from $17 to $33.</li>
<li>Seneca Foods Corporation (NASDAQ: <a class="ticker" href="https://www.benzinga.com/stock/senea#NASDAQ">SENEA</a>) gained 7.8% to $53.50.</li>
<li>IonQ, Inc. (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/ionq#NYSE">IONQ</a>) jumped 7.1% to $18.68.</li>
<li>Lifezone Metals Limited (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/lzm#NYSE">LZM</a>) rose 7.1% to $13.13.</li>
<li>Aclaris Therapeutics, Inc. (NASDAQ: <a class="ticker" href="https://www.benzinga.com/stock/acrs#NASDAQ">ACRS</a>) surged 7% to $8.06.</li>
<li>STAAR Surgical Company (NASDAQ: <a class="ticker" href="https://www.benzinga.com/stock/staa#NASDAQ">STAA</a>) gained 7% to $45.13. STAAR Surgical 10% owner Neal Bradsher acquired a total of 189,962 shares an average price of $41.42.</li>
<li>Precision Drilling Corporation (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/pds#NYSE">PDS</a>) jumped 5.8% to $72.65.</li>
<li>The Kroger Co. (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/kr#NYSE">KR</a>) rose 4% to $47.22 following quarterly results. The company also reached an opioid settlement agreement, agreeing to pay up to $1.2 billion to states and subdivisions and $36 million to tribes.</li>
</ul>
Now Read This: <a href="https://www.benzinga.com/news/23/09/34361412/wall-streets-most-accurate-analysts-say-hold-these-3-defensive-stocks-with-over-3-dividend-yields"> Wall Street&#39;s Most Accurate Analysts Say Hold These 3 Defensive Stocks With Over 3% Dividend Yields</a>

Precision Drilling Corp&nbsp;(NYSE: <a class="ticker" href="https://www.benzinga.com/stock/pds#NYSE">PDS</a>) penned an agreement to acquire CWC Energy Services Corp.&nbsp;<a class="editor-rtfLink" href="https://www.benzinga.com/pressreleases/23/09/g34308744/precision-drilling-announces-acquisition-of-cwc-energy-services" style="background-image:initial; background-position:initial; background-size:initial; background-repeat:initial; background-attachment:initial; background-origin:initial; background-clip:initial; margin-top:0pt; margin-bottom:0pt; color:#4a6ee0" target="_blank">for approximately C$141 million</a>.
The acquisition price comprises 947,909 PDS shares valued at approximately C$88 million as of September 1, 2023, market close, C$14 million in cash, plus the assumption of CWC&#39;s outstanding debt.
With the deal, PDS expects to add 62 marketed service rigs in Canada, seven in Canada, and 11 in the U.S. to its fleet.
The transaction is expected to completed in Q4 FY23, subject to CWC shareholders and other regulatory approvals.
Synergies: Post-integration, PDS expects to realize annual operating synergies of around C$20 million and has identified about C$20 million of excess CWC real estate that it plans to monetize post-transaction closure.
The company anticipates the transaction to be accretive on a 2024 cash flow per share basis and aid its ongoing deleveraging plan.
&quot;This acquisition supports our&nbsp;High Performance, High Value&nbsp;strategy as it allows us to expand our service offering in both Canada and the U.S. with high-quality rigs and field personnel. With the expected synergies and by further leveraging our scale, we believe the transaction will be accretive to earnings and provide significant cash flow to drive shareholder returns and support our debt reduction strategy. I am excited to welcome the CWC employees to the Precision team,&quot; said Kevin Neveu, PDS President and CEO.
PDS reaffirmed its plans of 2023 debt reduction of C$150 million in 2023 and C$500 million from 2022-2025.
In Q2, PDS&#39; cash provided by operations came in at C$28 million vs. cash used in operations of&nbsp;<a class="editor-rtfLink" href="https://www.benzinga.com/news/earnings/23/04/32009582/precision-drilling-clocks-59-revenue-growth-in-q1-cuts-2023-capital-spending-budget" style="background-image:initial; background-position:initial; background-size:initial; background-repeat:initial; background-attachment:initial; background-origin:initial; background-clip:initial; margin-top:0pt; margin-bottom:0pt; color:#4a6ee0" target="_blank">C$(65) million a year ago</a>.&nbsp;
Price Action: PDS shares closed lower by 0.39% at $67.05 on Wednesday.

Precision Drilling Bolsters Service Offering Via Acquisition Of CWC Energy Services For C$141M

Precision Drilling Corporation (&quot;Precision&quot;) (TSX:PD, NYSE:PDS) is pleased to announce that it has entered into an agreement to acquire all of the issued and outstanding common shares of CWC Energy Services Corp. (&quot;CWC&quot;) (TSXV:<a class="ticker" href="https://www.benzinga.com/stock/CWC#TSXV">CWC</a>) for total consideration of approximately CAD $141 million, comprised of 947,909 Precision shares, valued at approximately&nbsp;$88 million&nbsp;as of September 1, 2023 market close,&nbsp;$14 million&nbsp;in cash, plus the assumption of CWC&#39;s outstanding debt.

Precision Drilling Penned An Agreement To Acquire CWC Energy Services For Approximately C$141 Million

Raymond James analyst Andrew Bradford maintains Precision Drilling (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/PDS#NYSE">PDS</a>) with a Strong Buy and raises the price target from $110 to $115.

Raymond James Maintains Strong Buy on Precision Drilling, Raises Price Target to $115

<a href="https://investorplace.com">InvestorPlace - Stock Market News, Stock Advice &amp; Trading Tips</a>
Precision Drilling (NYSE:<a href="https://investorplace.com/stock-quotes/pds-stock-quote/">PDS</a>) just reported results for the second quarter of 2024.<ul><li>Precision Drilling reported earnings per share of $1.05. This was above the analyst estimate for EPS of 30 cents.</li><li>The company reported revenue of $313.73 million.</li><li>This was 0.41% worse than the analyst estimate for revenue of $315.04 million.</li></ul><div>InvestorPlace Earnings is a project that leverages data from <a href="https://www.tradesmith.com">TradeSmith</a> to automate coverage of quarterly earnings reports. InvestorPlace Earnings distills key takeaways including earnings per share and revenue, as well as how a company stacks up to analyst estimates. These articles are published without human intervention, allowing us to inform our readers of the latest figures as quickly as possible. To report any concerns or inaccuracies, please contact us at <a href="mailto:editor@investorplace.com">editor@investorplace.com</a>.</div><h3>More From InvestorPlace</h3>
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PDS Stock Earnings: Precision Drilling Beats EPS, Misses Revenue for Q2 2024

In a report released today, Luke Lemoine from Piper Sandler maintained a Buy rating on Precision Drilling (PDS – Research Report), with a price tar...

Piper Sandler Sticks to Their Buy Rating for Precision Drilling (PDS)

CIBC analyst Jamie Kubik maintained a Buy rating on Precision Drilling (PDS – Research Report) today and set a price target of C$140.00. The compan...

CIBC Sticks to Its Buy Rating for Precision Drilling (PDS)

Precision Drilling surges to 52-week high as CEO sees Canada rig shortage in 2025

Precision Drilling Corporation (PDS) Q2 2024 Earnings Call Transcript

RBC Capital analyst Keith Mackey maintained a Buy rating on Precision Drilling (PDS – Research Report) today and set a price target of C$125.00. Th...

Precision Drilling (PDS) Receives a Rating Update from a Top Analyst

Precision Drilling (TSE:PD) has released an update. Kevin A. Neveu, CEO of Precision Drilling Corporation, has certified the company's interim fina...

Precision Drilling CEO Certifies Interim Financials

The energy sector is poised for robust growth driven by recovering crude oil prices, concerning circumstance in the middle-east, and technological innovation. Hence, it could be wise to invest in high-momentum energy stocks Energy Transfer (ET), Secure Energy Services (SECYF), and Precision Drilling (PDS) this month. Read more... The oil and gas market is amongst the largest sectors in the world contributing across various industries. The recent surge in infrastructure requirements, technological advancements, and the geopolitical concerns have resulted in boosting trade and providing robust prospects for the market to flourish.
Thus, it could be wise to invest in high-momentum, fundamentally sound energy stocks Energy Transfer LP (<a href="https://stocknews.com/stock/ET/">ET</a>), Secure Energy Services Inc. (<a href="https://stocknews.com/stock/SECYF/">SECYF</a>), and Precision Drilling Corporation (<a href="https://stocknews.com/stock/PDS/">PDS</a>) in August for steady returns.
Oil prices have been highly unpredictable recently with concerns over large declines in <a href="https://www.reuters.com/business/energy/oil-prices-rise-us-crude-fuel-inventories-seen-shrinking-2024-07-24/">U.S. crude and fuel stocks</a>, growing oil supply risks from Canadian wildfires, falling U.S. crude and fuel inventories coupled with the rising tensions of a wider Middle East crisis post the killing of a Hamas leader in Iran.
In the last session, <a href="https://www.reuters.com/business/energy/oil-set-fall-fourth-week-demand-concerns-weigh-sentiment-2024-08-02/">Brent crude futures</a> increased by 62 cents to $80.13 a barrel, while U.S. West Texas Intermediate crude futures increased 62 cents to $76.93.
During June, <a href="https://www.iea.org/reports/oil-market-report-july-2024">global oil supply increased 150 kb/d to 102.9 mb/d</a> with field maintenance ease and rising biofuels. The solid monthly gains have resulted in 910 kb/d higher output from the prior quarter. Further, global refinery throughputs are projected to increase by 950 kb/d to 83.4 mb/d in 2024, and by 630 kb/d to 84 mb/d in 2025.
Also, factors like lowering crude stocks, and concerning middle-east geopolitical tensions have largely contributed to the crude oil price strength, and resulted in crude oil prices recovery in June from six-month lows, with Brent futures rising by $5/bbl to $86/bbl.
With this, global oil and gas market is projected to reach around $8.92 trillion by 2031, exhibiting growth at a <a href="https://www.kingsresearch.com/oil-and-gas-market-177">CAGR of 3.7%</a>. Factors like exploration of remote geographical areas, technological innovations, and strategic efforts and growth initiatives by industry players have propelled the market demand.
Given the industry's robust outlook, investing in quality energy stocks such as ET, SECYF, and PDS could be wise for future gains.
Energy Transfer LP (<a href="https://stocknews.com/stock/ET/">ET</a>)
ET is an energy-related services provider. The company owns and operates natural gas transportation pipelines and natural gas storage facilities in Texas and Oklahoma and approximately 20,090 miles of interstate natural gas pipeline.
On July 25, ET announced an increase in the quarterly cash distribution to $0.32 per common unit for the second quarter which ended June 30, 2024. The cash distribution per common unit is to be paid on August 19, 2024 to unitholders of record as of the close of business on August 9, 2024, and reflects a rise of 3.2% year-over-year.
ET pays an annual distribution of $1.28, which translates to a yield of 7.87% at the current share price. Its four-year average dividend yield is 9.17%. Moreover, the company's dividend payouts have increased at a CAGR of 18.1% over the past three years.
On July 16, ET and Sunoco LP (<a href="https://stocknews.com/stock/SUN/">SUN</a>) entered into a joint venture combining their crude oil and produced water gathering assets in the Permian Basin. ET will be holding 67.5% interest in the joint venture with Sunoco holding a 32.5% interest.
Also, on the same day, ET completed acquisition of WTG Midstream Holdings LLC. Total consideration for the transaction was $2,275 million in cash and about 50.8 million newly issued ET common units. The acquisition expanded Permian Basin pipeline and processing network providing further access to growing supplies of natural gas and NGLs.
For the first quarter that ended March 31, 2024, ET's revenues increased 13.9% year-over-year to $21.63 billion. Its <a href="https://www.investopedia.com/terms/o/operatingincome.asp">operating income</a> grew 15.4% year-over-year to $2.38 billion. Its net income stood at $1.69 billion, indicating growth of 16.9% from the prior year's quarter. In addition, the company's adjusted EBITDA increased 13% year-over-year to $3.88 billion.
Street expects ET's revenue for the second quarter (ended June 2024) to increase 17.4% year-over-year to $21.50 billion, while the company's EPS for the same period is expected to grow 42.4% year-over-year to $0.36. For the fiscal year 2024, the company's revenue and EPS are expected to increase 12% and 34.7% year-over-year to $88.01 billion and $1.47, respectively.
ET's stock has surged 12.7% over the past six months and 21.9% over the past year to close the last trading session at $16.19.
ET's <a href="https://stocknews.com/powr-ratings/">POWR Ratings</a> reflect this solid outlook. The stock has an overall rating of B, translating to a Buy in our proprietary rating system. The POWR Ratings are calculated by considering 118 different factors, with each factor weighted to an optimal degree.
ET has an A grade for Momentum and a B grade for Growth, Value, and Stability. It is ranked #3 out of 80 stocks in the <a href="https://stocknews.com/category/energy-oil-gas/">Energy – Oil &amp; Gas</a> industry.
In addition to the POWR Ratings we've stated above, we also have other ratings of ET for Quality and Sentiment. Get all ET ratings <a href="https://stocknews.com/stock/ET/">here</a>.
Secure Energy Services Inc. (<a href="https://stocknews.com/stock/SECYF/">SECYF</a>)
Headquartered in Calgary, Canada, SECYF is engaged in the waste management and energy infrastructure businesses in Canada and the United States. The company operates in three segments, Environmental Waste Management; Energy Infrastructure; and Oilfield Services.
On June 17, SECYF Board of Directors has declared a quarterly dividend of $0.10 per common share paid on July 15, 2024, to shareholders of record on July 1, 2024. The annualized base dividend of $0.40 per share equates to a total of around $96 million per year based on current issued and outstanding shares.
SECYF's four-year average dividend yield is 2.74%. Moreover, the company's dividend payouts have increased at a CAGR of 132.8% over the past three years.
During the second quarter that ended June 30, 2024, SECYF's total revenue rose 43.2% year-over-year to $2.55 billion, of which its Oil purchase and resale revenue increased 55% year-over-year to $2.21 billion. The company's net income came in at $32 million and $0.12 per share for the quarter, respectively.
In addition, the company's discretionary free cash flow grew 26.2% from the year-ago value to $53 million.
Over the past six months, SECYF's stock has gained 12.5% and 66.7% over the past year to close the last trading session at $8.72.
SECYF's sound fundamentals are reflected in its POWR Ratings. The stock has an overall rating of A, which translates to a Strong Buy in our proprietary rating system.
The stock has an A grade for Momentum and Value. It also has a B grade for Growth. Within the Energy – Oil &amp; Gas industry, SECYF has topped among the 80 stocks.
<a href="https://stocknews.com/stock/SECYF/">Click here</a> to access additional ratings of SECYF for Sentiment, Stability, and Quality.
Precision Drilling Corporation (<a href="https://stocknews.com/stock/PDS/">PDS</a>)
Based in Calgary, Canada, PDS is a drilling company which offers onshore drilling, completion, and production services to exploration and production companies in the oil and natural gas and geothermal industries in North America and the Middle East. It operates in Contract Drilling Services; and Completion and Production Services segments.
In terms of forward non-GAAP P/E, PDS is trading at 10.51x, 10% lower than the industry average of 11.67x. Likewise, the stock's forward EV/Sales multiple of 1.17 is 44.1% lower than the industry average of 2.10. Also, its forward Price/Sales of 0.74x is 48.9% lower than the industry average of 1.44x.
For the second quarter that ended June 30, 2024, PDS' revenues increased marginally year-over-year to $429.21 million, and its adjusted EBITDA was $115.12 million. The company's net earnings came in at $20.70 million and $1.44 per share for the quarter, respectively.
In addition, the company's cash and total assets stood at $48.23 million and $2.91 billion as of June 30, 2024.
Analysts expect PDS' revenue for the third quarter (ending September 2024) to increase 15.1% year-over-year to $371.90 million and its EPS is expected to grow 75.9% year-over-year to $1.84 over the same quarter. Moreover, the company has surpassed the consensus revenue estimates in three of the trailing four quarters.
PDS' stock has surged 23.3% over the past six months and 16.6% over the past year to close the last trading session at $74.88.
PDS' POWR Ratings reflect its bright prospects. The stock has an overall rating of B, equating to a Buy in our proprietary rating system.
PDS has a B grade for Value and Momentum. The stock has topped among the 13 stocks in the <a href="https://stocknews.com/category/energy-drilling/">Energy - Drilling</a> industry.
To access PDS' other ratings for Sentiment, Quality, Growth, and Stability, <a href="https://stocknews.com/stock/PDS/">click here</a>.
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ET shares were trading at $15.84 per share on Friday afternoon, down $0.35 (-2.16%). Year-to-date, ET has gained 19.70%, versus a 12.36% rise in the benchmark S&amp;P 500 index during the same period.
<hr><div style="clear:both;"></div> <h2>About the Author: Rjkumari Saxena</h2> <img src='https:/wp-content/uploads/2024/04/Rajkumari-Saxena_Image-1.jpeg' style="float:left; padding:5px;width:125px;">Rajkumari started her career as a writer but gradually shifted her focus to financial journalism, leveraging her educational background in Commerce. Fascinated by the interplay of business and economic shifts in equities, she aspires to evolve as an analyst. With a knack for simplifying complex financial concepts, her mission is to empower investors with insights that lead to profitable decisions.<a href="https://stocknews.com/authors/?author=rajkumari-saxena">More...</a>The post <a href=https://stocknews.com/news/et-secyf-pds-sun-3-high-momentum-energy-stocks-to-load-up-on-this-month/>3 High-Momentum Energy Stocks to Load up on This Month</a> appeared first on <a href=https://stocknews.com/>StockNews.com</a>

3 High-Momentum Energy Stocks to Load up on This Month

Precision Drilling looks to conduct normal course issuer bid

Precision Drilling (TSE:PD) has released an update. Precision Drilling Corporation has announced its approval by the Toronto Stock Exchange to buy ...

Precision Drilling Launches Share Buyback Plan

SECYF

Press Releases

Precision Drilling Corporation Announces Filing of Annual Disclosure Documents

Precision Drilling Corporation 2024 First Quarter Results Conference Call and Webcast

Precision Drilling Corporation Announces Filing of Management Information Circular, Virtual-Only Annual and Special Meeting of Shareholders, and 2023 ESG Performance Data

Precision Drilling Announces 2024 First Quarter Unaudited Financial Results

General

Precision Drilling Corporation Holding Virtual-Only 2024 Annual and Special Meeting of Shareholders on May 16

Precision Drilling Corporation Announces Voting Results from the 2024 Annual and Special Meeting of Shareholders

Precision Drilling Corporation 2024 Second Quarter Results Conference Call and Webcast

Precision Drilling Extends Senior Credit Facility and Provides Progress Update on 2024 Debt Repayment and Share Repurchase Targets

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