Precision DrillingNordic American Tankers

Precision Drilling vs Nordic American Tankers

This page compares Precision Drilling and Nordic American Tankers, focusing on business models, financial performance, and market context. It provides neutral, accessible explanations to help readers ...

Which Baskets Do They Appear In?

Indigenous Equity In Canadian Energy

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Published: August 13, 2025

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Canada's New Energy Alliance

Canada's New Energy Alliance

Cenovus Energy is partnering with Canadian Indigenous groups to acquire a stake in MEG Energy, signaling a new collaborative approach to resource development. This could create opportunities for companies integral to the Canadian oil sands infrastructure and operations.

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Beyond The Barrel: The Production Playbook

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Exxon Mobil's recent earnings showed that boosting production can overcome low oil prices, highlighting a key strategy for success. This creates an investment opportunity in the companies providing the essential equipment and services that make increased oil and gas output possible.

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Powering Production: The Oil Services Surge

Powering Production: The Oil Services Surge

Exxon Mobil's recent earnings beat, driven by higher production volumes in a low-price environment, highlights a key industry strategy. This creates an investment opportunity in companies that provide essential equipment and services for oil and gas exploration and production.

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Tapping Venezuela's Oil Reserves

Tapping Venezuela's Oil Reserves

The U.S. government has authorized Chevron to resume oil production in Venezuela, creating a potential investment opportunity. This could drive demand for oilfield services and infrastructure companies needed to restart and expand operations.

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Natural Gas Drilling Revival Play

Natural Gas Drilling Revival Play

A carefully selected group of stocks poised to benefit from the recent upturn in U.S. natural gas drilling activity. Our professional analysts have identified companies across the entire natural gas value chain that could see improved performance as drilling rebounds for the first time in twelve weeks.

Published: July 20, 2025

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Investment Analysis

Pros

  • Precision Drilling is a leader in onshore drilling technology and innovation, which enhances its competitive advantage in the energy sector.
  • The company maintains a moderate market cap of around CAD 742 million with a solid revenue base nearing CAD 1.9 billion in 2024, supporting operational scale.
  • Analyst consensus is mostly positive, with a majority recommending a buy and a 12-month price target implying over 20% upside potential.

Considerations

  • Precision Drilling reported a significant earnings per share (EPS) miss in Q3 2025, with actual EPS far below expectations, signaling earnings volatility.
  • Revenue declined slightly in 2024 compared to the prior year, and net income decreased by more than 60%, indicating recent profitability challenges.
  • The company’s stock exhibits a relatively high beta of 1.79, suggesting greater volatility and sensitivity to market fluctuations.

Pros

  • Nordic American Tankers owns and operates a homogeneous fleet of 20-23 double-hull Suezmax crude oil tankers, providing fleet consistency and operational flexibility.
  • The company operates primarily in the spot market, leveraging short-term charters which can benefit from favorable oil shipping rates.
  • Recent stock performance shows notable gains with a 12-month increase near 10% and robust short-term momentum, reflecting improving market conditions.

Considerations

  • Nordic American Tankers has a high debt-to-equity ratio of approximately 3.63, indicating significant leverage that could pressure financial stability in downturns.
  • Profitability is weak, as reflected by a negative profit margin and a relatively high P/E ratio, suggesting market concerns about earnings sustainability.
  • The company’s earnings per share remain low, and earnings forecasts indicate potential price declines over the next year, highlighting downside risk.

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