I figure Pioneer's shares are currently trading at 7.1 X 2010E EBITDA, essentially in line with its small-cap U.S. energy services peers. I continue to believe that Pioneer's high-quality rig fleet and South american growth platform position it for the eventual cyclical recovery in drilling activity. However, this is offset by short-term concerns regarding potential covenant violations and the company's high level of exposure to very weak spot markets following the expiry of a significant number of long-term contracts during 2009 (contracts for 18 rigs expired August 6, 2009, and only three rigs are under contract beyond the end of 2009). The recent entry into the Marcellus Shale is a long-term positive but too small in the short-term to provide a meaningful catalyst for share price outperformance. I am keeping PDC for exposure to the sector and the high degree of potential for fortune to shine and propel this to high levels.

On a different point of interest I am very keen on a jr oil and gas company that has large deep reserves which they are going to tap, basic valuation metrics dictate the share price should double at least imo. Here is article on ODE.V http://energymarketwatch.net/ode.htm it paints a compelling picture.