High Arctic Energy Services Inc - HWO-T

Company Website 

Company Highlights: 

  • High Arctic has drilling and completion services in the Papua New Guinea market which is experiencing a massive growth stage for its expanding LNG business. It has four mobile rigs that can be taken into terrain that only helicopters can access, providing very good margins as utilization increases. They also have a small nitrogen and other equipment in Canada. They sold their service rig business to Precision Drilling for $38.2M with the big payment of $28M to be received in January 2023.
  • HWO has $15M of cash on the balance sheet at the end of Q2/22, no debt and a working capital surplus of $27.5M or $0.56 per share. They initiated a six cent annual dividend in May.
  • HWO has 48.7M shares outstanding and has a market capitalization of nearly $70M.
  • We see HWO generating $0.16 per share in cash flow this year with a big jump expected in 2023 as their PNG equipment sees higher usage. We have a $8.00 per share Bull Market Peak target.
     
Mike Maguire
Mike Maguire
Chief Executive Officer
Mike Maguire joined High Arctic in December of 2013 and was the President of High Arctic’s International Business from August 2016. In March of 2020, Mr. Maguire was appointed Chief Executive Office. He has over 28 years of oilfield drilling and well servicing experience. Prior to joining High Arctic Mike held senior management positions with two of the largest Australian oilfield service companies, Oil Drilling & Exploration Ltd. and Easternwell Group. Starting his career as a Petroleum Engineer with Santos in Australia, Mike expanded his experience into energy services across Australia, Papua New Guinea and internationally. Mike holds a Bachelor’s Degree (Hons) in Petroleum Engineering from the University of New South Wales, is a long standing member of the Society of Petroleum Engineers and is a former Vice Chairman of the Australian chapter of the International Association of Drilling Contractors.