STOCKCHASE

Oil service industry has not been robust in the last couple of years but going forward it should be in a better position. Likes it going forward for the long-term but would like it cheaper than what it is. If you have a three-year outlook, you could buy it today.

2010-01-27

TOP PICK

9.190

Michael Decter

Oil patch is coming back and natural gas prices are strengthening so the well drilling business is on its way back. Have great financing. Has another huge leg up in it.

2010-01-25

Comment

9.080

Did reasonably well in the last 7-8 months. A little bit of upside left to go. Good news is integration of Grey Wolf acquisition, updating its fleet with deeper rigs and have a lot of assets in the West. Has a little bit of room to go but he is sceptical about natural gas prices holding beyond the next few months.

2010-01-22

BUY

9.500

Andrew Cook

Likes the oil/gas service sector and this is the largest public company. Sector has been ignored but with the pickup in natural gas this is a great way to play the resurgence.

2010-01-20

SELL

9.100

Ross Healy

(Market Call Minute.) Very poor potential. No income because they cut their pay out.

2010-01-11

DON'T BUY

7.910

Barry Schwarrtz

No longer pays distributions. Concerned about natural gas long-term and he is avoiding natural gas drilling stocks.

2010-01-04

HOLD

7.680

Bruce Campbell

(Market Call Minute.) Recovered somewhat. A lot of it is gas oriented. A hold at best.

2009-12-30

HOLD

7.680

David Driscoll

(Market Call Minute)

2009-12-29

BUY

7.290

One of the largest land-based drillers. Half of their 450 drills are in use. Tremendous upside leverage in this company. Hopefully they will restore the dividend at some point. He is looking at buying it.

2009-12-14

DON'T BUY

7.030

Rick Stuchberry

The key to this is when gas markets recover. An international company but still has a lot of drilling rigs in the Western Canadian basin, which is primarily gas. Until gas gets up in the $6-$7 range, there won't be a big influx of drilling.

2009-12-10

DON'T BUY

7.020

Don Lato

If there were an upturn in drilling, there would be a marked improvement in the price of this. That's a big if and when. It won't happen this winter. Have moved into some of the major shale plays in the US.

2009-12-09

SELL

7.180

Barry Schwarrtz

(Market Call Minute) Very worried about natural gas.

2009-12-02

HOLD

6.940

Has recently shown up on his radar screen. Selling at a modest multiple of what its normalized earnings would be. Looking attractive and potentially has some good upside.

2009-11-27

TOP PICK

7.300

Michael Decter

Very large premium drilling company. Thinks the bottom in drilling is now past.

2009-11-11

DON'T BUY

7.570

Has cleaned up its balance sheets and done a lot of things right but think it's fairly valued here.

2009-11-09

Comment

7.110

Recovered quite a lot from its lows. Partially a reflection on the increased activity in the oil services patch. This is a leader in this field. Outlook for the business is quite good but expect distributions could be cut.

2009-10-14

DON'T BUY

7.440

Jennifer Stevenson

Should be one she loves, but when second quarter results came out they showed no penetration into the market.

2009-09-22

BUY

7.490

Ron Meisels

200-day moving average has intersected and the stock is starting to rise. May have a tiny pullback to about $6.80-$6.90 but expects it will be a significantly better than it has.

2009-09-18

DON'T BUY

7.430

David Burrows

Doesn't like exposure to drillers in Alberta gas. Has stayed focused on oil because the economics look very good. Would prefer something like Carbo Ceramics (CRR-N), which does gas for fraqing or equipment companies like FMC Technologies (FTI-N).

2009-09-14

BUY

6.950

He believes the natural gas market has turned and the drillers are at the bottom of their cycle. This will be one of the worlds great drilling companies going forward. He owns Cathedral Energy (CET.UN-T). You should also look at Pason Systems (PSI-T) or Transocean (RIG-N).

2009-09-10

Comment

6.100

Rick Stuchberry

(Market Call Minute.) Drillers look very interesting here. Would buy Trinidad Drilling (TDG-T) before this one but we are entering a period when you can buy the drillers.

2009-08-27

BUY

6.150

Christine Poole

For the long-term perspective, this is a good entry point. Made a big acquisition last year, possibly at the worst time, but it expanded their exposure outside of Canada with some international. Drilling had a severe decline because of natural gas prices. She thinks, longer-term, natural gas prices will recover and drilling activity should improve.

2009-08-26

BUY

6.220

Gavin Graham

(Market Call Minute.) Has been awful because people have not been drilling wells in North America but it has bottomed out and the volume will start to increase.

2009-08-25

DON'T BUY

5.220

Alexander Lane, B Comm, C

Recently did a very dilutive equity issue and debt levels have come down. Short-term outlook for natural gas drilling is not very good. Questions management decisions. Expect there will be a better time to buy this.

2009-07-06

BUY on WEAKNESS

5.770

Got sufficient financing but now has to wait out the low level of drilling activity to start moving back up again. Great equipment and a very strong market presence. Expecting a corrective phase through the summer.

2009-06-29

Comment

5.510

Steve Carlin

Still cautious on the drilling outlook. Doesn't have a lot of upside potential on it. The big issue with them is the mountain of debt they acquired to make acquisitions. Also did a fairly dilutive equity deal to help pay down the debt.

2009-06-19

BUY

6.630

Drillers have had a terrible time but with oil at $70 you will see more activity. Very volatile area. Likes the stock.

2009-06-05

DON'T BUY

5.790

Oil services have been extremely distressed. Not sure that market is likely to pick up that quickly.

2009-05-27

WAIT

5.570

Michele Robitaille

A little bit early for the oilfield service plays. Expect there will be a little bit of weakness going through the summer, which would be a better opportunity. Longer-term it is well positioned.

2009-05-22

DON'T BUY

5.880

Bill Harris, CFA

When there is this much capacity and drilling has come off this much, the leverage is actually with the E&P company. The whole market has to tighten up before the drillers actually get the margin on their side. Prices will still come down on the drillers. Drillers lag the industry by 2 years.

2009-05-19

DON'T BUY

5.980

Sandy McIntyre

(Market Call Minute.) Too much financial leverage. A commodity cyclical with a bad balance sheet.

2009-05-14

BUY on WEAKNESS

5.550

Joseph Schachter

We are in the spring break up when demand is at its lowest level. No reason to be chasing the stock right here.

2009-05-01

WAIT

5.400

Recently did a very significant financing with Alberta. Much better shape than 3 months ago

2009-04-27

DON'T BUY

5.410

Charles Lannon

Bad outlook for 12 months. Doesn’t suggest this. Distribution is not coming back any time soon.

2009-04-23

HOLD

4.460

Had a nice run. Bounced back in what looked to be like a death watch on it. The challenge is, it is gas weighted.

2009-04-14

DON'T BUY

4.250

Joseph Schachter

Biggest driller in Canada, but the utilization of this industry is down to very low levels. Has quite a debt load. Stock will languish until there is a recovery in gas prices. Will be a survivor.

2009-04-06

WAIT

3.600

Ben Stadelmann

Think they will survive and there will have to be a lot more drilling done. Chart indicates it is bottoming. Entry point would be a little further on when the worst of the recession is over.

2009-04-01

DON'T BUY

3.090

John Zechner

A premier player and will do well once drilling activity picks up. More bullish on oil itself and the big internationals such as Talisman (TLM-T), Nexen (NXY-T), Suncor (SU-T) and Canadian Natural Resources (CNQ-T). Drilling sector will lag. (See Top Picks.)

2009-03-16

WAIT

2.950

Jaime Carrasco

If you have a long-term horizon, drilling will pick up at some point. It has to come back. Probably not a bad time, but when will there earnings show? Thinks it's still early.

2009-03-13

DON'T BUY

2.960

Bruce Campbell

Doesn't like the drillers because nobody wants to drill with the low oil price environment. There is also a surplus of natural gas.

2009-02-23

DON'T BUY

2.800

Rick Stuchberry

Outlook is not great in the short term for drillers. Natural gas prices have to start to appreciate than the producers have to decide to drill more wells. Things should be improving by next year.

2009-02-20

DON'T BUY

3.020

David Burrows

(Market Call Minute.) Stay away from the drillers.

2009-02-19

HOLD

3.890

Michael Smedley

Present management is expanding the company again. It should be all right, but you are waiting for a cycle return on the whole oil services sector.

2009-02-13

SELL

4.600

Veronika Hirsch

(Market Call Minute.) Balance sheet issue. Need to refinance.

2009-02-05

DON'T BUY

5.080

Michele Robitaille

Drilling activity has come to a virtual standstill and outlook is weak. Made an acquisition of Grey Wolf at a very healthy price and terms of the debt are quite restrictive. If you own, you might want to hold for a couple of years until the drilling cycle comes back.

2009-02-03

DON'T BUY

6.560

Laura Wallace

Timing of the acquisition of Grey Wolf (GW-A) was unfortunate. Cut their distribution. Oil service companies are high beta oil companies and oil companies are high beta. A lot of volatility.

2009-01-28

DON'T BUY

7.520

With the decline in oil prices, there will be massive cutbacks in capital expenditures, which will impact drillers.

2009-01-20

BUY on WEAKNESS

8.440

(Market Call Minute.) Look for an opportunity to buy but don't be in a hurry. Cheap.

2008-12-19

SELL

7.650

Bill MacLachlan

This is a company that he would not be in at all. It is so sensitive to the cap X of the energy companies. Thinks it will be a few years before this one returns to its former levels.

2008-12-11

Comment

8.780

Trading at about a 50% haircut to its replacement value for its rigs. 17.9% yield. Not overly bullish on many of these service companies.

2008-12-03

DON'T BUY

9.030

Jean-Francois Tardif

15% yield. North American drillers are trading very cheap on all metrics. Really likes the new management. Has older equipment and newer companies will be more in demand.

2008-12-02

Comment

8.450

Quality trust. Largest drilling and service trust in Canada. Making a big acquisition of Grey Wolf (GW-A). Previously a pristine balance sheet but will now have debt levels. Seeing drilling coming off in the US. Would be cautious.

2008-11-20

BUY

11.160

Norman Levine

Good time to be buying oil drilling and oil services companies. Strong demand for their services.

2008-11-11

Comment

11.550

Greg A. Taylor, CFA, BBA

It seems they are able to keep the distribution currently. Thinks winter drilling will be fine.

2008-10-27

WAIT

12.080

Ben Stadelmann

Tentative hold. Wait if buying.

2008-10-09

Comment

17.910

Largest oil service firm in Western Canada. Will depend on commodity prices. If you have a positive view on oil and natural gas you should continue to hold. The numbers he sees for drilling this winter don't look as good.

2008-09-24

WAIT

18.950

One of the largest contract drillers in Canada. Recently acquired Grey Wolf (GW-A) in the US. Expects there could be tax loss selling in November when shareholders from Grey Wolf could be selling shares. Well run trust, but wait until December.

2008-09-19

BUY

22.000

Largest driller in Western Canada. Because of higher energy prices, drilling activity has been significantly higher in the last year. They are also expected to look for acquisitions in the US. (See Top Picks.)

2008-08-07

HOLD

23.000

Has been disappointing. Last year, gas prices went down so drilling slowed. This spring started off slowly and earnings started picking up. Will do well with their bigger rigs on the deep drilling.

2008-08-01

BUY

27.030

David Baskin

Calfrac Well Services (CFW-T), Precision Drilling (PD.UN-T), Ensign Resource (ESI-T). Involved in fracturing, an expensive exploration/production service, which basically fractures rocks to release petrochemicals. With higher natural gas, companies are starting to use this service. Bullish on natural gas. These companies can be very cyclical and will fall off the table when energy prices weaken.

2008-06-10

DON'T BUY

26.190

Laura Wallace

3 to 5 years this is a great story. Near term there are some issues. Pricing a great deal of success into the organic growth initiatives they are having in the US and internationally. 6% yield. A little bit ahead of itself.

2008-05-23

PARTIAL SELL

27.940

One of the largest oil/gas drilling and service companies in Canada. Recently had plans to expand into the US. Q1 results were OK but some people were expecting higher data rates for some of their rigs. There is usually a seasonal weakness that we are approaching and you might consider taking some profit.

2008-05-14

DON'T BUY

27.670

Brian Acker, CA

This is still in the trust structure and he does not allow trusts. His model price is $41, which would be a 58% positive differential but with all these companies they do have to convert, eventually, back to the corporate structure. There will be a 30% haircut somewhere.

2008-05-08

PARTIAL SELL

26.210

Kevin Hall BComm, CFA

Will be looking to expand beyond North America. This is the shoulder season for energy, soul if you own, he would recommend taking some profits. If you don't own, Wait.

2008-05-06

BUY

24.370

Well run company and lots of assets. Wouldn't be surprised if they convert back to a corporation. There is significant turnaround in the fortunes of the oil/gas drillers out west as gas prices have come up. The companies that have the equipment to do the deep drilling are going to do very well.

2008-04-24

HOLD

25.550

(Market Call Minute.) The 800-pound gorilla in the oil patch.

2008-04-16

BUY

25.240

One of the primary service oil companies in Canada. Price increase is a reaction the high oil/gas prices which are creating a lot more exploration. Well managed. He has been looking at this one lately.

2008-04-15

BUY

23.180

Jeff Parent

Chart shows a very definite reversal signal. (A break out of a long-term down trend.) Will run into resistance, but not until it gets to about $27. Use a stop around $22.

2008-04-02

WAIT

23.420

Ken McCord

A big move today, but it hasn't been screening well. He would wait.

2008-03-26

BUY

22.470

Sandy McIntyre

(Market Call Minute.) Would buy this for the recovery in the gas market.

2008-02-26

BUY

19.070

Norman Levine

Became an income trust at precisely the wrong time. Gas prices have declined and Alberta's royalty tax has not helped. Eventually, stocks like this get too cheap and you have to look beyond the current prices. When natural gas prices recover, this'll be great for them. Wouldn't be concerned about holding it here.

2008-02-11

SELL

18.650

Alex Ruus

Would avoid this stock. Their plan is to increase their international business, but is primarily leveraged to Canada. Will take a while before it turns.

2008-02-04

Comment

18.650

David Baskin

There are some hopeful signs for the natural gas industry. Inventory is starting to come down. That should help the price of natural gas a little, which should be good for the drilling companies. They have expanded their scope out of Canada towards the US where there is more activity. The stock may have hit its bottom at the start of the year.

2008-02-04

DON'T BUY

16.450

(Market Call Minute.) It will be a bit of a rocky market for them in 2008. Wait 6 to 12 months in order to get a better picture.

2008-01-21

BUY

17.800

David Baskin

Natural gas inventories are coming down and activity is picking up this winter. Thinks that all the energy service companies are being beat up too much.

2008-01-14

HOLD

16.930

If you have a 3-year target, this is a good buy. There is not going to be a pickup in drilling until there is a sustained natural gas price of $7 or more. He thinks this is a year away. Good yield while you wait.

2008-01-11

BUY

15.400

Joanne A. Hruska, CFA

Service sector always gets hit the hardest but has the most potential for major wins/losses. Very capital-intensive. In this sector, the drilling rig sector would be considered high beta in that they go down and up the most. You want to own these at the beginning of the upturn.

2008-01-04

HOLD

15.280

Drilling will slow down because of weak gas prices. Thinks distribution is safe. Wouldn't buy at this time.

2007-12-28

Comment

15.100

The extra $.40 they paid was a surprise. On a cash flow basis they are in good shape. Has dropped because of tax loss selling. Looking pretty good at this point in time.

2007-12-21

HOLD

16.000

Kevin Hall BComm, CFA

Like all energy services it has corrected good amount. Natural gas has been very soft with inventory levels being full. There’ve been big imports of LNG. This will be a late 2nd half 08 story. Distribution cut was made, so this should now be stable. Yield of 9% plus.

2007-12-04

DON'T BUY

15.770

Michael Decter

Energy sector, including the drillers, has really been clobbered, largely because of low natural gas prices. Declining rates are so high in the patch now that this slowdown will start to impact production.

2007-11-12

HOLD

16.750

New CEO. After their non-competition ends they will try to expand more into Mexico and other countries. The issue is what type of drilling season will occur in Q1 of 08. A cold winter in eastern Canada could increase natural gas prices. Good balance sheet. If you think gas prices will improve, Hold.

2007-11-08

Comment

17.000

Patrick Kim

The classic value pick for the contrarian investor. Market does not like the energy services space right now. Over the long term, this will bounce back. If you Buy you will have to hold until 2009, which will be the first time for a significant turnaround in terms of utilization rates.

2007-11-02

DON'T BUY

16.930

Brian Acker, CA

He has a model price of around $25. A positive 10%, 11%.

2007-11-01

DON'T BUY

18.520

Benj Gallander

Would not be interested in investing in a drilling company at this time.

2007-10-18

DON'T BUY

17.790

They don't own, but are watching. Needs the firming of natural gas prices. Also needs the royalty program to be approved, before he would take the risk.

2007-10-17

HOLD

17.700

Joseph Schachter

Has been hammered because the utilization rate has been down. They also had to decrease their payouts. A very cheap stock from the point of view of the upside capability when there is a recovery in the industry.

2007-10-11

HOLD

19.040

Michele Robitaille

All the oilfield service trusts have had big corrections because of weak activity levels in western Canadian sedimentary basin. This will probably continue right through 2008. Cut the distribution earlier this year but doesn't see a lot of risk with the current level.

2007-10-03

HOLD

19.640

As natural gas prices firm going out into 08 and 09, he feels the drillers will come back with a vengeance. Gives you a decent return, so continue holding.

2007-09-25

DON'T BUY

20.310

Brian Acker, CA

This is a tough one for him. With the distributions coming out, they balance sheet is actually falling on his quantitative model. The model price is around $25, but we'll get hit with taxes in 2 years. Probably trading in line. Doesn't see any big upside

2007-08-30

Comment

20.800

Sandy McIntyre

He tends to avoid the service sector except for production related companies rather than exploration companies. Good balance sheet. This one will suffer more in down periods, but will recover more quickly.

2007-08-13

Comment

20.460

Generally doesn't like this one, but it has fallen so far it might be worth looking at.

2007-08-08

DON'T BUY

21.200

If you own, you are getting close to the point where you can average down. Wait until you see some signs of natural gas basing. That could be as long as a year from now.

2007-08-03

WAIT

21.100

Laura Wallace

Looking at this one very closely. Have cut distributions twice. Canadian drilling has been very bad. 3% of their rigs are in the US, but has accounted for 17% of their EBITDA. Outlook for earnings is very poor and the earnings are very close to the distribution.

2007-08-02

WAIT

24.690