Canyon is upgrading eleven 2,500 hp pumps (27,500 hp) or 11% of its existing pressure pumping capacity to become 3,000 hp pumps. This new pump design is expected to lower Canyon’s cost structure due to greater durability and lower labour requirements. We believe a significant portion of Canyon’s fleet is capable of undergoing these upgrades. This would improve Canyon’s gross margins, but quantitatively addressing this is challenging at this juncture. We have only made modest changes to our est
Companies: Canyon Services Group
WCSB pressure pumping supply and demand is poised to benefit from an increase in stages per well and proppant per well. We believe this could cause supply and demand to tighten more quickly than anticipated in an activity recovery. Higher service intensity has been particularly evident in the Montney and Duvernay, where stages per well have generated a 2012-1Q16 CAGR of 23% and 44%, respectively, and a proppant per well CAGR of 39% and 62%. Our investment bias is towards Trican given it is the l
Companies: CFW FRC TCW
Canyon reported 2Q16 EBITDAS of -$14 mm, marginally below our forecasted loss of -$12 mm. The quarter was negatively impacted by a bad debt expense of $4 mm which was tied to a company that has now filed for CCAA. Management suggested that 6,500 wells completed in Canada would utilize all of the 2.0 mm hp available in Western Canada. We would agree with the assessment based on our sensitivity modelling of HP demand. There are a number of bottlenecks that may limit pressure pumping capacity addit
Canyon reported 1Q16 revenue of $71 mm, below our estimate of $78 mm. Adjusted EBITDAS was a loss of $2.0 mm, roughly in line with our loss of $3 mm
Impact: We expect the stock to trade in line with the market as results were largely in line.
We are updating our oilfield industry forecasts post the release of FirstEnergy’s new commodity price forecast for crude oil and natural gas on March 24, 2016. We have updated our 2016e Canadian well count/drilling days forecast to 3,209/37,335 from 3,800/43,325. In 2017e, we have left our forecast unchanged at 6,200 wells/70,200 days. In the U.S., our 2016e rig count forecast is now 482 (prior: 610) and 2017e is 675 (prior: 775). Data for 1Q16e came in weaker than our prior forecast anticipated
Companies: CWC ESI PD SVY TDG WRG CET PSI PHX BDI MTL SES TOT CFW FRC TCW
Canyon has closed its bought deal financing which involved the issuance of 15.8 mm shares at an offer price of $4.00/share for gross proceeds of $63.3 mm. We expect the proceeds will be used to reduce indebtedness. Previously, we had estimated Canyon’s 2016e and 2017e net debt positions at $93 mm and $92 mm, respectively, which has now been lowered to $33 mm and $33 mm. We still expect the Company will violate its covenants in 4Q16e. We have lowered our 2016 estimates to reflect industry activi
Canyon reported 4Q15 EBITDAS of $8 mm, ahead of our es mate of $6 mm due to higher pressure pumping revenue. The Company has amended its credit facilities and we believe it has ample room to do so again if required. This is an event we expect to occur. Canyon has eliminated its dividend, which results in a reduction of annual cash outflows by $8 mm. We have lowered our 2016e EBITDAS to a loss of $4 mm, from positive a $9 mm. In 2017e, we are now forecas ng EBITDAS of $28 mm (prior: $50 mm).
In conjunction with the new oil price forecast released by FirstEnergy on February 8, 2016, we have updated our 2016e Canadian well count/drilling days forecast to 3,800/43,325 from 4,950/54,853. In 2017e, we are now forecasting wells/drilling days of 6,200/70,200 from 7,900/86,600. In the U.S., our 2016e rig count forecast is now 610 (prior: 763) and 2017e is 775 (prior: 1,063).
We have updated our 2016e WCSB drilling days forecast to ~54,900 days, which is 18% below our prior forecast and a 16% decline y/y. We are also rolling out our 2017e drilling days forecast, which is 86,600 days, or a 58% improvement from 2016e. In the context of the last 25 years, our 2017e forecast ranks 19th for active drilling days. Our 2016e U.S. rig count forecast has been reduced to 763 rigs from 888 rigs. In 2017e, we are forecasting a U.S. rig count of 1,063 rigs.
Advantage Oil & Gas Ltd. (AAV) Reports Third Quarter Results Slightly Behind Expectations Due to TCPL Restrictions, Beats Cost Bogeys by 9%, Offers Strong Middle Montney IPs | Bonavista Energy Corporation (BNP) Reports Third Quarter Results, Reduces Dividend, Unveils Conservative 2016e Guidance Aimed at Balance Sheet Preservation | Crescent Point Energy Corp. (CPG) 3Q15 Results In Line, Waterflood and Service Cost Deflation Recognition Highlight Operational Update | Crew Energy Inc. (CR) Reports
Companies: BNP CPG CR PWT RRX TET PRE FRC PHX PSI SES
Impact: Expect stock to trade higher on EBITDAS beat
Crew Energy Inc. (CR) Announces $50 Million Disposition and Provides Operations Update | Canyon Services Group Inc. (FRC) Announces Acquisition and Reduces Dividend by 60%
Companies: Crew Energy Inc. (CR:TSE)Canyon Services Group (FRC:TSE)
Canyon has announced a complementary fluid hauling acquisition for $9.5 mm. The P/Book multiple for this transaction was 0.8x and we estimate payback will be less than four years. We estimate EBITDAS contribution of $2.5 mm to $3.0 mm in 2016e, or payback of 3 to 4 years.
Our estimates have only undergone moderate changes.
We have only made modest changes to our 2015 estimates, with the signifi cant increase in EBITDAS (new: $27 mm, prior: $18 mm) resulting
from the incorporation of 2Q15 results. In 2016e, our outlook and estimates are largely unchanged. We continue to rate the stock as an Outperform with a $9.00/share target price.
Research Tree provides access to ongoing research coverage, media content and regulatory news on Canyon Services Group.
We currently have 20 research reports from 1
Higher metal prices saw CAML achieve a 52% and 131% increase in EBITDA and FCF respectively in the first half of 2021, facilitating an attractive 8p interim dividend declaration (up 2p on H1 2020). The H1 results are tracking our full-year estimates, which if achieved would put CAML on an undemanding EV/EBITDA multiple of just 4x and see the shares yield over 8% at current market price. Given average copper, zinc and lead prices across H2 to date are around 10% higher than our pricing assumption
Companies: Central Asia Metals Plc
EQTEC have confirmed that they have completed acquisition of a 1.2MW gasification plant. The plant is expected to be operational by Q4 2022.
Companies: EQTEC PLC
Today's raise is a testament to support for Jubilee's copper strategy in Zambia and once again showcases Jubilee's keen eye for value enhancing deals. The increase in ownership in the Tailings projects to produce the raw material for the Sable and Leopard refineries will allow Jubilee to benefit more from the profits generated and also to make choices on development speed and product output to closely match the requirements of the Integrated refineries. Today consolidates Jubilee's position in
Companies: Jubilee Metals Group PLC
H1 2021 results
Companies: Union Jack Oil Plc
EQTEC and KIBO Plc have confirmed a strategic partnership in the 25MW Billingham Plant. Kibo are investing £3m to acquire 54.54% of the Project SPV, with the remaining 45.46% owned by EQTEC.
Production and cash holding update
Companies: Hurricane Energy Plc
• The latest horizontal well (BN-8H) has achieved a ten day initial oil production rate of ~7.6 mbbl/d. This is materially above our expectations of ~5 mbbl/d.
• As a result, current oil production is ~ 15.4 mbbl/d, also above our expectations of >13 mbbl/d. This is a very good result and with another development well due to be spudded shortly, the company is well on track to meet its production target of ~16 mbbl/d in 4Q21.
• The results of the BN-8H well could also have positive implications f
Companies: PetroTal Corp.
Oil gained a third week as investors focused on the ongoing production shut-ins in the US Gulf of Mexico as more refineries have resumed operations nearly two weeks after Hurricane Ida tore through the region.
Futures in New York posted its longest set of weekly gains since July after ending Friday 2.3% higher. More than a million barrels a day of US offshore crude production remains shut in after Ida swept through the area nearly two weeks ago. Meanwhile, more Louisiana refineries are resumi
Companies: FO 88E DEC EME GTC TRIN UOG WEN
Despite the significant ongoing challenges posed to the business as a result of the COVID-19 pandemic and the sudden passing of founder and Executive Chairman, Bruce Dingwall, Trinity has released a strong set of interim results, with the Company's resilient production and strong balance sheet providing a solid foundation from which it can meaningfully scale the business. Higher oil price realisations during H1/21 more than offset an 8% natural decline in production, leading to a 69% increase in
Companies: Trinity Exploration & Production Plc
Bluejay Mining* (JAY LN) – BUY, Valuation 37.7p – Analyst call
Central Asia Metals (CAML LN) – H1 performance and strong commodity prices deliver increased interim dividend and early repayment of debt
Eurasia Mining* (EUA LN) – Monchetundra detailed mining plan
Jubilee Metals Group (JLP LN) – Conditional placing to progress Zambian expansion
Empire Metals* (EEE LN) – Strategic technical review commenced at Eclipse project
Renascor Resources (RNU AU) – Major project status awarded by Austr
Companies: JAY CAML EEE EUA WRES JLP RNU
• Pharos is farming out 55% WI in El Fayum and North Beni Suef to IPR Energy. In return IPR will fund US$38.425 mm of Pharos’ retained share of the costs of future activities, equating to funding a ~US$85 mm gross programme (opex + capex). In addition, IPR will pay US$5 mm in cash on closing and a contingent consideration of US$0.175 mm for each US$1 over US$62/bbl (with a cap of US$92/bbl) each year from 2022 to 2025. This represents a potential additional consideration of U$20 mm (US$5 mm x 4
Companies: Pharos Energy PLC
Exactly one year ago, the FTSE 100 closed at 5,862, having fallen 100 points on the day, the lowest point since mid-May 2020, due in part, to the strength of sterling vs US$ at $1.34. One year on, the FTSE 100 has risen to 7,119, a rise of 21%, it remains 7% below the peak in January 2020. From an international viewpoint, US and European markets continue to trade at record highs. The US Federal Reserve is close to withdrawing some of its economic support this year as inflation picks up and the e
Companies: AMYT BAG BVC BRSD CLG CML FBD GDWN INV MACF MNZS MIO NRR NSF NBI MATD PREM QFI RUA SCS STVG SUR SNX UPGS VAST VLS
Companies: IronRidge Resources Ltd
Bluejay Mining* (JAY LN) – Greenland agrees new economic aid with the US
Ariana Resources (AAU LN) – Further drilling results from Kepez North
CATL (CATL N) – CATL may be joining the bidding war for Millennial Lithium Corp. as Chinese firms battle for EV material supply
Condor Gold* (CNR LN) – Senior mining engineer appointed to advance La India feasibility study
Cora Gold* (CORA LN) – Interims
Galileo Resources (GLR LN) – Sale of Kalahari Copper Belt licences expected to complete next week
Companies: AAU JAY CNR CORA GLR GGP POW RRR VUL SSW
Thor today announces a further round of drilling at its Kaunda project (operated by EnviroCopper in which Thor has a 30% stake). The drilling is being undertaken by MinEx CRC using an innovative Coiled Tube drilling program. MinEx CRC is the world's largest mineral exploration collaboration bringing together the Mining Industry, including drilling companies, Government and Research Organisations. Coiled Tube drilling is a rapid, safe, energy and water-efficient drilling method at a fraction of
Companies: Thor Mining PLC