This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

U.S. Drillers Spike on Results

(U.S. drilling stock story, updated for latest U.S. rig count)

NEW YORK (TheStreet) -- The rumors of the death of the U.S. land drilling market were greatly exaggerated, and the latest drillers to benefit from the U.S. drilling market resilience are Bronco Drilling (BRNC) and Union Drilling (UDRL) with both stocks soaring on Friday after quarterly results that came in ahead of expectations.

Union Drilling ended trading on Friday up 28%, on what for it is huge volume of 462,000 shares traded -- Union Drilling has average daily volume of less than 50,000 shares. Bronco Drilling ended Friday up 10% on trading of 1.2 million shares, more than four times its average day's volume.

The upward trend in shares of the U.S. land drillers was extreme on Friday morning, but it was part of a trend that has sent these and other shares in the U.S. land drilling market to 52-week high levels since bottoming out last October.

The 2010 backdrop for the U.S. land drillers was the bearish thesis that U.S. rig counts and pricing power had to slow, and margins erode, as the glutted natural gas market outweighed any incremental gains for oil-directed activity.

The pricing peak, though, and rig count decline, haven't occurred, even though investors and analyst feared its arrival.

In February, oil services company Baker-Hughes (BHI) reported that the number of rigs aiming for oil in the U.S. was at its highest level since 1987, which was twice last year's level of land-based U.S. oil rigs.

On Friday, Baker-Hughes reported that the number of rigs actively exploring for oil and natural gas in the U.S. increased again this week to 1,707 -- 899 rigs were exploring for gas and 801 for oil. A year ago, the count was 1,396.

Bronco Drilling beat on both the top and bottom line on Friday morning, with earnings of 6 cents per share, versus the consensus estimate for a 1 cent loss, and with revenues rising 134.6% year over year to $37.3 million, versus the consensus at $36.7 million.

Union Drilling, which was upgraded to a buy at Gabelli Securities on Friday, also beat its earnings bogey for the past quarter, by 10 cents, with a one cent loss, though revenue came in a little below the Wall Street mark.

1 of 3

Select the service that is right for you!

COMPARE ALL SERVICES
Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
DOW 16,880.36 -31.75 -0.19%
S&P 500 1,970.07 +0.12 0.01%
NASDAQ 4,462.9020 +20.2040 0.45%

Brokerage Partners

Rates from Bankrate.com

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs