Long-time Buy recommended oil-rig marketer Grey Wolf (GW) has finally ended its long-term courtship with Precision Drilling (PDS) by agreeing to be purchased by the E&P [exploration and production] trust for cash and stock totaling over $2 billion.  This follows GW turning down an offer from Basic Energy Services (BAS). 

Precision has missed earnings estimates in its last three quarterly earnings reports, but its Zacks consensus for fiscal year 2008 is up slightly in the past month.  For BAS, it has, like Grey Wolf, seen a flurry of upwardly revised estimates for both the eptember quarter and fiscal year earnings.

Zacls senior oil & gas industry analyst Sheraz Mian has covered Grey Wolf for years, and as of his latest Analyst Note has kept his Buy rating on the shares.  A quote: "[T]he termination of its merger agreement with BAS due to shareholder rejection... will bring back the focus to Precision's bid for the company, which overtime may become an attractive alternative."