Research, Charts & Company Announcements
Research Tree provides access to ongoing research coverage, media content and regulatory news on WESTERN ENERGY SERVICES CORP. We currently have 18 research reports from 1 professional analysts.
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Research reports on
WESTERN ENERGY SERVICES CORP
WESTERN ENERGY SERVICES CORP
28 Jul 16
Western reported a 2Q16 EBITDAS loss of $2 mm, slightly better than our forecasted loss of $3 mm. Western’s current Canadian drilling rig utilization is 29%, above industry average of 20% with five rigs currently on take or pay contracts. Day rates are likely to be weak in upcoming quarters, but equipment has to go back to work before pricing improves. As such, we view current utilization as a step in the right direction. The outlook for Contract Drilling is unchanged from our prior views. We have decreased our 2016e EBITDAS by $3 mm to $9 mm and 2017e by $7 mm to $41 mm, respectively, with the primary reason being tied to a weaker profitability outlook in the Production Services division.
The Swing Provider of Drilling Rigs to Key Canadian Resource Plays
31 May 16
We are of the view a recovery in the WCSB rig count is forthcoming; Western is one of the key drillers to own given its leverage to the spot market. Based on our analysis, we view Western as one of the key swing suppliers of drilling rigs for key Canadian resource plays (Montney and Deep Basin). The Company has been one of the most efficient drillers in the Montney (196 m/day vs coverage universe average of 189 m/day) and has drilled the deepest wells on average in the Deep Basin in our coverage universe. We estimate Western’s mid-cycle and “peak” EBITDAS of $85 mm and $134 mm. Applying the Company’s 2011 to 2014 average EV/EBITDAS multiple of 6.0x, we arrive at implied share prices (implied returns) of $4.49 (69%) and $8.86 (234%). There have been no changes to our estimates with this update.
1Q16 Results and Revised Credit Facility
02 May 16
Western reported 1Q16 EBITDAS of $3 mm, which was in line with our estimate.The Company’s credit facility and covenant package has been amended. This is a positive development as Western now has access to $50 mm of borrowing capacity, while also saving an estimated $1.5 mm of costs annually. The Company’s view on 2H16e has improved, and while we are not yet modelling this, it could result in positive revisions to our estimates.
1Q16 RESULTS AND REVISED CREDIT FACILITY
28 Apr 16
We expect the stock to trade lower tomorrow as results were modestly behind consensus and the reduced credit facility ($195 mm to $50 mm) is likely to take some investors by surprise. However, we believe the reduction of the facility should be viewed positively in the context that Western now has access to its facility due to relaxed covenants (which it did not before), will save $1.5 mm annually due to reduced costs and is unlikely to require borrowings for the duration of our forecast. We would be buyers of the stock on any weakness.
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.
GMP FirstEnergy ― UK Energy morning research package
06 Dec 16
Transglobe Energy (TGL CN); BUY, C$5.25: Homeward bound… back to Canada | Great Eastern Energy Corporation (GEEC LN) (not covered): Reserves update in India | BP (BP LN) (not covered): Acquiring interest in Tangguh in Indonesia | Exillon Energy (EXI LN) (not covered): Production update in Russia | Genel Energy (GENL LN); SPECULATIVE BUY, £2.60: Receipt of payment for Taq Taq export in Kurdistan | ExxonMobil (XOM US) (not covered): Relinquishing blocks in Kurdistan
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.
16 Jan 17
We take a look at the rankings of the various countries in Africa that have a significant exposure to mining. We take the Transparency International corruption rankings as our starting point and modify these for exceptional geology and for current UK government travel warnings. Ghana, Botswana and Namibia come out as our top three, with Eritrea, Kenya and Zimbabwe at the bottom of our rankings.
19 Jan 17
Aggregated Micro Power* (AMPH): Funding for first peaking power plant project (CORP) | The Mission Marketing Group* (TMMG): Positive trading update (CORP) | Cello (CLL): Increasingly backed by, and leveraging, technology (BUY) | 4imprint (FOUR): Growth backed by strong cash flow continues (BUY) | Allergy Therapeutics (AGY): Positive trading update and market share gains drive upgrades (BUY) | Shanta Gold (SHG): Q4 operating results (BUY) | Sound Energy (SOU): Tendrara extended well test result (BUY) | Revolution Bars (RBG): Price target increase (BUY)
Small Cap Breakfast
17 Jan 17
Global Energy Development (GED.L) — To be renamed Nautilus Marine Services. Schedule 1 from developer and seller of hydrocarbons and related products. Reverse takeover. Raising $10.5m via a convertible. Expected 9 Feb. Eco (Atlantic) Oil & Gas—TSX-V listed oil and gas exploration has announced its intention to float on AIM. Assets in Guyana and Namibia. Proposed £2m-£3m fundraise. Diversified Gas & Oil—According to LSE website first day of trading on AIM now expected for 30 January.