Research, Charts & Company Announcements
Research Tree provides access to ongoing research coverage, media content and regulatory news on SECURE ENERGY SERVICES INC. We currently have 18 research reports from 1 professional analysts.
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SECURE ENERGY SERVICES INC
SECURE ENERGY SERVICES INC
No Change to Outlook; Attractive at Current Prices
28 Jul 16
SECURE reported adjusted EBITDAS of $8.5 mm, above our estimate of $6.4 mm, while margins in the PRD division far exceeded our estimate. 3Q16e activity has been impacted by wet weather across the WCSB, but the startup of the Kakwa FST in September 2016 will be additive for PRD volumes in 4Q16e. We expect gross margins in the PRD division to exceed 50% in upcoming quarters. We have reduced our 2016e EBITDAS to $91 mm from $97 mm while our 2017e EBITDAS is effectively unchanged at $171 mm
Re-Acquires 100% Ownership in its La Glace and Judy Creek JV Assets
13 Jul 16
SECURE has announced the acquisition of its previously owned JV assets in La Glace and Judy Creek for $26.7 mm. SECURE regains 100% ownership in portions of these assets from its JV partner, Pembina Pipeline Corporation (PPL). We believe the transaction metric is roughly 5.0x to 6.0x EV/EBITDAS. SECURE’s 2016e EBITDAS has been increased by 1% in 2016e ($97 mm) and 2% in 2017e ($171 mm). The Company’s balance sheet remains in impeccable shape at 1.6x net debt/ EBITDAS in 2016e.
Announces Midstream Acquisition and 1Q16 Results
03 May 16
SECURE has announced the acquisition of PetroLama for $53.5 mm. PetroLama specializes in the physical trade, storage, terminalling and transport of crude oil and NGLs. This transaction is expected to generate EBITDAS in the range of $8 mm to $9 mm over the next 12 months, indicating an EV/EBITDAS valuation range of 5.9x to 6.7x.
1Q16e Preview and Commodity Update – All Is Quiet on the Western Front
13 Apr 16
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, and we have lowered our estimates across our coverage universe accordingly. We are currently below 1Q16 consensus for 15 of 18 companies in our coverage universe, but the percentages are misleading given the absolute size of EBITDAS being earned this quarter.
Closes Bought Deal Financing Totaling $150 mm Including Over-Allotment
22 Mar 16
Secure has closed a bought deal financing for $150 mm (19.5 mm shares), which will initially be used to reduce indebtedness, but we expect will ultimately be used to execute acquisitions. Based on our estimates, SECURE’s balance sheet could easily absorb an acquisition of $50 mm of EBITDAS at anywhere from 4.0x to 6.0x EV/EBITDAS using a 75/25 (cash/equity) structure. This would put potential acquisition amounts at $200 mm to $300 mm. The above assumptions applied to our current 2017e would lead to 22% accretion for our EBITDAS/share forecast. We have made no changes to our revenue or EBITDAS forecasts with this update. We have made changes to our depreciation assumptions and modified our share count assumptions to reflect the bought deal.
20 Feb 17
Hayward Tyler Group* (HAYT): Trading update and financial position (CORP) | Petra Diamonds (PDL): Interim results (BUY) | Gemfields* (GEM): Interim results (CORP) | Premaitha Health* (NIPT): Middle East momentum (CORP) | Sound Energy (SOU): Acquisition update and TE-8 well spud (HOLD) | Proactis* (PHD): Interim trading on track (CORP) | 7digital* (7DIG): Automotive contract win (CORP)
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.
Playing the long term, with short-term risks
16 Feb 17
After the publication of the annual results, we update our view and highlight the key points. Q4 16 key highlights As a reminder, the company reported results 30% below expectations at $400m for Q4 16. By division: 1) In upstream, underlying replacement costs profit came to $400m, vs. a loss a year earlier of $728m and a loss of $224m in Q3 16, reflecting the ongoing lower costs which have benefited from simplifications, efficiencies and lower exploration write-offs. In the US, the loss is still $147m. Production came in at 2.19mbpd, down 5.5% yoy due to disposals and up 1.8% on an underlying basis thanks to ramp-ups. One of the key events during the quarter was the renewal of BP’s onshore concession in the UAE with a 10% interest in the ADCO onshore oil concession. In terms of outlook, production should be higher in 2017 and will depend on the timing of project start-ups, acquisitions, divestments, and OPEC quota. Also the Abu Dhabi concession will be visible as from Q1 17. 2) In downstream, replacement costs profit came to $877m, down from $1.2bn a year ago and $1.4bn in Q3 16. The US division showed a loss of $371m vs a gain of $1.25bn. Non-US Fuel business earnings halved to $417m due to the weaker refining environment as well as the impact from the particularly large turnaround at the Whiting refinery. In lubricants, profit rose to $357m, reflecting the continued strong performance in its growth markets and premium brands as well as simplifications and greater efficiencies. The margin should remain unchanged for Q1 17. 3) Rosneft. Underlying replacement costs profit came to $135m, down from $235m a year ago, affected by the increased government take. Production was at 1.15mbpd, up from 1.03mbpd a year ago. This reflects the completion of the acquisition of Bashneft and Rosneft’s increased stake in the PetroMonagas venture. BP received a dividend of $322m after deduction of the withholding tax, in July 2016. On the Macondo oil spill, the charge taken for the Q4 16 pre-tax was $530m. This reflects BP’s latest estimates for claims including business economic loss. The pre-tax cash outflow on costs related to the oil spill for the full year 2016 was $7.1bn. Cash flow Excluding the Gulf of Mexico payment, the operating cash flow was $4.5bn. Underlying operating cash flow excluding the oil spill-related payment was $17.8bn for the full year. Proceeds during the year and the scrip dividend were not enough to cover capex and the cash dividend. Gearing at the end of the year increased to 27% ($35.5bn debt), in the high range of the group’s target of 20-30%. Organic capital was $16bn, below original guidance of $17bn to $19bn. Capex in 2017 should be close to $16-17bn. Divestment proceeds should be higher in 2017, close to $5bn and then reducing by $2-3bn per year after 2018. The total costs of the Deepwater payment should fall to $2bn in 2018 and then $1bn per year as from 2019. In 2017, this should be close to $5bn. All in all, including the latest acquisitions, cash flow break-even should be close to $60/bbl in 2017.
Small Cap Breakfast
16 Feb 17
Saffron Energy—Schedule One update. Raising £2.5m, expected Mkt Cap £7.7m. Admission due 24 Feb. Italian Oil & Gas Play 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. Arix Bioscience — Intention to float on the main market from the global healthcare and life science Company supporting medical innovation. Raised £52m in Feb 16 with investors including Woodford Investment Management
GMP FirstEnergy ― UK Energy morning research package
17 Feb 17
Enquest (ENQ LN): Speculative Buy, £0.65: Kraken FPSO in the field and hooked up in the North Sea | Ithaca Energy (IAE LN/CN)6: BUY, £1.40: Stella First Hydrocarbons in the North Sea | Bowleven (BLVN LN) (not covered): Denies claims made by Crown Ocean Capital
Share & share alike
14 Feb 17
The rally in the last fortnight, highlighted in the table, reflects a continued flow of positive updates and economic news. The FTSE 250, Small cap and Fledgling indices have reached record highs. We are in the lull ahead of results for those companies with a December year end, a welter of economic data regarding the UK economy, the State of the Union address in the US on 28 February and the UK Budget on Wednesday 8 March. We will learn at that stage the latest forecasts from the Office of Budget Responsibility. As highlighted previously, the reaction to corporate updates will continue to set the tone.