Justiss Oil (JSTS) Stock Analysis & Winston Score

Justiss Oil Co is a private oil and gas drilling company based in Olla, Louisiana. It provides contract drilling services, meaning it operates drilling rigs for other energy companies that want to extract oil and natural gas from the ground. The company primarily serves exploration and production companies operating in the Gulf Coast and Mid-Continent regions of the United States. The company earns money by charging clients a daily rate to use its drilling rigs and crews, a model known as contract or "dayrate" drilling. Justiss has operated as a regional driller for decades, giving it established relationships and local operational experience in its core markets. However, contract drillers face significant risk from falling oil prices, because when energy prices drop, exploration companies cut drilling budgets quickly, which reduces demand for rigs and puts pressure on dayrates and utilization.