Canada’s Trinidad Drilling offers robust fourth-quarter outlook

CALGARY -- In releasing and summarizing its third-quarter 2018 results on Friday, Calgary-based Trinidad Drilling offered a rather robust outlook for the fourth quarter. “To date in the fourth quarter of 2018, conditions in the U.S. have remained strong,” said the company. “Customer demand for high-specification equipment is firm, and dayrates continue to increase. Trinidad recently reached its expected target of 45 active rigs in the U.S. and currently has 42 rigs operating, as rigs move between customers and locations.”

Trinidad said that it continues to maintain strong market presence in the Permian basin and, despite industry concerns regarding transportation bottlenecks in the area, customer demand remains robust.

“Trinidad is presently receiving multiple requests for additional equipment in 2019, focused largely in the Permian, but with growing interest in other basins,” added the company. “Dayrates for high-specification equipment continue to increase, and Trinidad expects to see ongoing improvement in spot market dayrates through the remainder of 2018, and into 2019.”

Trinidad has 25 rigs active in Canada, as well as one rig operating in Mexico and one rig in Bahrain on standby, awaiting a new location. The contract on the rig located in Bahrain was recently extended, and this rig is now expected to work until the end of first-quarter 2019. In addition, two rigs are in the process of moving to Kuwait and being upgraded to meet required contract specifications. These rigs are expected to begin operating in second-quarter 2019.