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US Rig Count Rises as Gas Drilling Gains Offset Flat Permian Activity, RBC Says

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US oilfield drilling activity increased last week, with the active land rig count rising by four rigs as gains in both oil and gas drilling offset unchanged activity in the Permian Basin, RBC Capital Markets strategists said in a report on Sunday.

RBC analysts said the US land rig count rose to 581, with oil rigs increasing by two to 441 and gas rigs gaining two to 13.

The Permian, the largest Us oil-producing basin, was unchanged at 268 active rigs. RBC said that the basin accounted for about 61% of oil rigs in the Lower 48 states and 46% of total US land rigs.

Drilling activity among individual contractors was mixed, the consultancy said. Patterson-UTI Energy's (PTEN) active rig count rose by three from the previous week to 103, compared with a third-quarter-to-date average of 100 rigs, in line with its quarterly guidance.

Precision Drilling (PDS) was unchanged at 42 rigs, with a quarter-to-date average of 43, above its third-quarter guidance for activity in the "low 40s".

Helmerich & Payne's (HP) active rig count fell by one to 150, although its quarter-to-date average of 149 remained toward the upper end of its fiscal Q4 guidance range of 145 to 151 rigs.

Nabors Industries (NBR) was operating 77 rigs, averaging 74 during the quarter to date and running above its third-quarter guidance of 73 rigs. Nabors has recorded the strongest year-on-year growth among contractors tracked by RBC, adding 15 rigs, including 10 in the Permian.

RBC said that rig utilization also continued to improve. Super-specification rig utilization rose to 73% from 72% a week earlier and 63% a year ago, while total rig utilization increased to 49% from 43% a year ago.

The tightening in the super-specification segment could strengthen drilling contractors' pricing power.

Nabors, in the Haynesville gas basin, has also gained market share in the Permian, reaching 11% from 8% a year earlier, while Helmerich & Payne's share declined to 32% from 35%.

Nabors increased its market share to 15% from 8% a year ago after adding five rigs. The five largest contractors collectively increased their share of basin activity by 6% over the same period.

Private operators continued to account for a growing proportion of US drilling activity, representing 60% of active rigs compared with 55% a year ago.

Private operators in the Eagle Ford added 10 rigs over the past year and now account for 59% of basin activity, up from 44%. RBC said that their share in Appalachia, however, declined to 42% from 44%.

However, despite strong gains in oilfield services stocks this year, land drilling shares remain below their historical valuation averages. RBC said that the group was trading at about 5.3 times estimated 2026 enterprise value to EBITDA, compared with a historical average of 6.4 times.

RBC's oilfield services coverage group has gained 46.1% so far this year, compared with an 11.8% rise in the S&P 500.

Price: $12.37, Change: $-0.48, Percent Change: -3.77%

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