Research, Charts & Company Announcements
Research Tree provides access to ongoing research coverage, media content and regulatory news on CALFRAC WELL SERVICES LTD. We currently have 17 research reports from 1 professional analysts.
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Research reports on
CALFRAC WELL SERVICES LTD
CALFRAC WELL SERVICES LTD
Positive Trends for Canadian Pressure Pumping
31 Aug 16
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 largest pure play Canadian pressure pumper, with excess equipment and a discounted valuation relative to its peers.
29 Jul 16
Calfrac reported a 2Q16 EBITDAS loss of -$14 mm, which was in line with our forecast. Our 2016e EBITDAS of -$23 mm is unchanged, while we have lowered 2017e EBITDAS to $75 mm (prior: $81 mm). The Company has temporarily shuttered its North Dakota operation. We believe this will be positive for operating margins in the U.S. segment. Competitive bidding practices in Canada continue to be an impediment to margin improvement, but 3Q16e activity is expected to be high for the Company’s active fleet.
29 Apr 16
Calfrac’s 1Q16 EBITDAS was a loss of $11 mm, but after adjusting for $4 mm in restructuring costs it could be viewed as a loss of $7 mm, compared to our forecasted loss of $14 mm. Calfrac has reduced its 2016e capex to $40 mm from $50 mm. Our forecast suggests the first equity cure provision for the Company’s funded debt to EBITDAS covenant will need to be utilized in 2Q16e, but it could occur in 3Q16e. The Company has temporarily suspended its Eagle Ford operations, which refocuses Calfrac’s operations on the Rockies, Marcellus and Bakken.
RESULTS IN LINE WITH CONSENSUS. CAPEX REDUCED. ADDITIONAL EQUIPMENT PARKED AND RETIRED.
28 Apr 16
Impact: Neutral. We expect the stock to trade in line with the market today as results were largely in line with consensus expectations. Operationally, the Company retired ~74,000 hp and is temporarily suspending its South Texas operations, both of which we view positively.
The Slide Rule
12 Jan 17
What is The Slide Rule? The Slide Rule has been designed to dramatically simplify the identification of the best companies in the UK small/mid-cap sector by making a quantitative assessment of the relative potential of each company. At its core, The Slide Rule aims to identify those companies that create genuine shareholder value through strong returns on capital and solid growth, but also present a value opportunity with the potential tailwind of earnings momentum. Companies are assessed within a Quality, Value, Growth and Momentum (QVGM) framework.
Small Cap Breakfast
24 Feb 17
GBGI—Schedule One update from integrated provider of international benefits insurance. Raising £32m at 150p. Admission expected tomorrow. Anglo African Oil & Gas— Admission expected early March. Acquiring stake in producing near offshore field in the Republic of the Congo. Guinness Oil & Gas Exploration—Publication of prospectus. Seeking to raise £50m and invest in 15 exploration companies at launch, with plans to grow the portfolio to 30 positions during its lifetime. Issue closing 23 Feb.
Sound Energy is an AIM-listed upstream gas company
27 Feb 17
Sound Energy is an AIM-listed upstream gas company with a balanced exploration and appraisal portfolio focussed on three strategic assets in onshore Morocco and Italy. The share price has trebled in the past year, following drilling success in the Tendrara licence of eastern Morocco. The work program of the next 12-18 months has the potential to de-risk additional gas resources in Morocco and Italy, providing short-term catalysts for further upside in the share price. However, any disappointing drilling results might leave the stock rather exposed given recent momentum and lack of certified reserves, although we recognise that the optionality in the portfolio would remain substantial.
Opuama production restarts
21 Feb 17
Eland has confirmed the successful restart of exports from OML 40 through the new shipping alternative that it has implemented. Sales from the export terminal are expected imminently, re-establishing cash generation for Eland. Cash at YE16 was US$11.1m which has since reduced to US$5.9m, mainly reflecting initial operating expenses for the shipping alternative. While it is early days, Eland has demonstrated its ability to restart exports and production from OML 40 following the shut-down of the Forcados terminal a year ago. Production to date is averaging around 7kbd and we expect that to ramp up as Opuama operational performance improves. At US$55/bbl Brent, we estimate Eland is generating a net cash margin of around US$25/bbl. We reiterate our Buy recommendation and 95p per share Target Price.