Research, Charts & Company Announcements
Research Tree provides access to ongoing research coverage, media content and regulatory news on CWC ENERGY SERVICES CORP. We currently have 17 research reports from 1 professional analysts.
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CWC ENERGY SERVICES CORP
CWC ENERGY SERVICES CORP
Service Rig Market Share Increases Again
11 Aug 16
CWC reported 2Q16 EBITDAS of $1 mm which was much better than our forecasted loss of $2 mm. The beat was driven by an increase in service rig market share and strong cost controls. Service rig market share increased to 13% in 2Q16, from 10% in 1Q16 and 6% in 2Q15. The Company’s current drilling rig utilization is 44%, well ahead of industry utilization of 20%. We have increased our 2016e EBITDAS to $9 mm from $6 mm and 2017e EBITDAS to $15 mm from $13 mm. Both of the increases are the result of higher service rig operating hours and margins.
27 Apr 16
CWC has announced a rights offering that we expect will generate $10.2 mm in proceeds at minimum, but could be up to $14.6 mm. A portion of these funds will be used as part of the equity cure provision in the Company’s leverage ratio. The Company has also amended its covenants providing it with increased flexibility through 1Q18. We anticipate that CWC will remain in compliance with its covenants based on our current estimates. CWC has released its 4Q15 financials, which were above our estimates due to stronger than expected margin performance in both segments. EBITDAS of $2.3 mm was above our estimate of $1.0 mm. We have increased our 2016e EBITDAS to $4.2 mm from $3.6 mm due to higher activity for CWC’s Contract Drilling business. In 2017e, we have increased EBITDAS to $10.3 mm from $9.8 mm for similar reasons.
ANNOUNCES COVENANT RELIEF AND NEW MANAGEMENT TEAM MEMBERS
15 Apr 16
Impact: Positive. Our estimates, target price and rating for CWC are currently Under Review as we await the release of the Company's 4Q15 financials. Nonetheless, we view the additional covenant relief as positive as it provides CWC additional financial flexibility.
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.