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.
Strong trading leads to upgrades
22 Mar 17
On the back of today’s positive trading update and slightly upgraded profit forecasts for FY2017, FY2018 and FY2019 we have reviewed our DCF analysis. This has led to an increased DCF valuation per share of 1500p (from 1200p) which we have made our new target price (from 1200p). Both TFP and JC Paper have contributed to the upgrades shown in the table below as have favourable currency movements. With the potential for further upgrades due to capitalising 3DP costs to come we maintain our Add recommendation.
GMP FirstEnergy ― UK Energy morning research package
17 Mar 17
Pacific Exploration & Production1,6 (PEN CN); BUY, C$72.00: 4Q16 results and improving outlook | Serinus Energy (SEN CN)1, 3; Speculative Buy, C$0.65: FY16 results | IGas Energy (IGAS LN) (not covered): Final terms of a previously announced proposed capital restructuring | Tullow Oil (TLW LN): HOLD, £3.10: Right Issue at a discount & CNOOC exercises pre-emption rights in Uganda
The Momentum Continues - 2017 to be a Good Year
16 Mar 17
Welcome to IIR’s second “Blue Book” for Junior Resource Companies. This publication covers over 60 resource companies that were present at the 121 Group’s 2017 Cape Town Conference, held at Welgemeende in the Gardens district on February 6-7, 2016. The summaries in the book have been prepared with the assistance of the 121 Group based in London/ Hong Kong and Gavin Wendt from Minelife in Sydney, with the introduction being prepared by Mark Gordon and Gavin Wendt. The company information is accurate as at the time of the conference – and further information on the companies can be provided upon request.
Bang to rights
21 Mar 17
Tullow unexpectedly announced a US$750m rights issue on Friday at a 45.2% discount to the previous close. While this step confirms our investment thesis, the scale of the discount and the timing look like a slap in the face for investors and/or indicative of a weaker financial position than we are modelling. We publish revised estimates to reflect the impact of the issue and cut our Target Price to 215p per share (from 245p). We maintain our Hold recommendation.
Panmure Morning Note 22-03-2017
22 Mar 17
Acacia Mining and Endeavour Mining confirmed merger talks have now ended with Endeavour claiming an inability to “create adequate value for Endeavour shareholders”, most likely, we believe, given the disappointing ruling from the Tanzanian government on copper-gold concentrate sales. We were positive on the merger and believed a credible London listed Pan-African producer capable of challenging Randgold, would have been established. We make no change to our Hold recommendation today, and expect the shares to be marked lower in early trade.