Essential Energy Services Ltd. - ESN-T

Company Website 

Company Highlights: 

  • Essential has two business lines in the Canadian energy service industry. It operates one of the larger Canadian coil tubing fleets (large market share in deeper depth market) and has a significant downhole tool business (Canada and US). The company has no net debt and a working capital surplus of $0.31 pers share at the end of Q2/22. One almost gets all of the fixed asset equipment for free.
  • Essential should be a significant beneficiary of the increase in activity in drilling deeper natural gas wells in NE BC. Large reserve growth will be needed to meet the 5-6 LNG plants expected to be onstream by the end of this decade.
  • ESN has a market cap of around $50M. Revenues in 2022 should reach $140M and cash flow should exceed $10M. Our Bull Market Peak target is $3.00 per share.
     
Garnet Amundson
Garnet Amundson
President & CEO
Mr. Amundson has been President, Chief Executive Officer and a Director of Essential Energy Services and a predecessor company since 2004. He was a founder of the predecessor company and led the companies through an initial public offering, two public company mergers, the acquisition and integration of numerous private oilfield service companies and multiple oilfield service-line dispositions. Mr. Amundson holds the Chartered Professional Accountant (CPA, CA) designation. He commenced his career in the oil and gas business over 40 years ago as a roughneck working on a drilling rig.