While the buyouts have minimal economic impact for the Oklahoma-based land driller, they serve as the opening salvo in what many say could be a deeper downturn in the fortunes of US drillers.
Unit declined to name the operator that dropped the rigs, only saying that it received about $15 million upfront to terminate the three deals.
“Not a trend yet, but not a good omen for activity,” analysts at Houston investment bank Tudor Pickering Holt said in a note to clients.
