Global Hunter Calls Recent Bronco Drilling Growth "Just The Beginning"

In a report published by Global Hunter, Bronco Drilling's BRNC recent growth is likely just the beginning.

Global Hunter reported that BRNC continues to benefit from its decision to divest non-core assets, improve its balance sheet, and position its fleet in the oily and liquids-rich plays, affording it the highest fleet utilization of any driller Global Hunter covers. “Announcing intentions to close on the sale of another three mechanical rigs will bring its fleet to 22 rigs, 19 of which are electric and capable of working in the major unconventional plays. Moving forward with two newbuild of its Stallion class design, likely delivered in Q1 and Q2 2012, as we had forecasted, marks the first step towards adding new assets, a strategy we think expands through the year. While we would be less aggressive buying the stock at these levels, we still think there is upside, particularly if BRNC expands its new build program.”

Bronco Drilling closed on Friday at $9.66.