Land Drillers Recommended By Morgan Stanley Amid Permian Takeaway Risks

Precision Drilling (PDS +3.1%) and Nabors Industries (NBR -0.8%) are upgraded to Overweight from Equal Weight at Morgan Stanley, which sees both companies continuing to realize strong pricing and activity levels in their U.S. land drilling businesses.

Given its expectation that Permian constraints will "dominate the narrative" through the Q2 earnings season and the belief that the Permian's regional weakness has potential to transmit to other basins, Stanley's Connor Lynagh recommends decreasing completions exposure as it increases land drilling exposure.

As a result, the firm downgrades C&J Energy Services (CJ +1.5%) and U.S. Silica (SLCA -1%) to Equal Weight from Overweight and Superior Energy (SPN -0.4%) to Underweight from Equal Weight; it maintains Overweight ratings for Keane Group (FRAC +0.8%), FTS International (FTSI -2.7%), Liberty Oilfield Services (LBRT +0.7%) and Patterson-UTI Energy (PTEN -1.5%).

Source : https://seekingalpha.com/news/3369729-land-drillers-recommended-morgan-stanley-amid-permian-takeaway-risks

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Land Drillers Recommended By Morgan Stanley Amid Permian Takeaway Risks

Source:4-Traders

Land Drillers Recommended By Morgan Stanley Amid Permian Takeaway Risks

Land Drillers Recommended By Morgan Stanley Amid Permian Takeaway Risks

Source:4-Traders

Land Drillers Recommended By Morgan Stanley Amid Permian Takeaway Risks