Investorideas.com

Call 800 665 0411 to learn about our services for your stock

Search   Follow Investorideas on Twitter   Investorideas is on Facebook   Investorideas is on Youtube   Investorideas is on Pinterest  Investorideas is on stocktwits   Investorideas is on tumblr   Investorideas is on LinkedIn   Investorideas Instagram   Investorideas Telegram   Investorideas Gettr   Investorideas RSS




Share on StockTwits

Energy Services Stocks to Watch (TSX: $E.TO) (OTCQB: $ETOLF) (TSX: $PHX.TO) (TSX: $ESI.TO) (TSX: $STEP.TO)

Higher Capital Spending for Oil Industry to Drive Growth for Energy Service Providers

 

Vancouver, Kelowna, Delta, BC - April 11, 2023 (Investorideas.com Newswire) Investorideas.com, a global investor news source covering oil and gas stocks issues an energy services sector snapshot featuring Enterprise Group, Inc. (TSX: E) (OTCQB: ETOLF), a consolidator of services including specialized equipment rental to the energy/resource sector. The Company also works with particular emphasis on mobile power systems and technologies that mitigate, reduce or eliminate CO2 and Greenhouse Gas emissions for itself and its clients.

Mining.com recently reported, "The Alberta Energy Regulator projected capital spending on oil and gas to increase to C$17 billion this year, which would be a 56% increase over 2021."

"This year's been a really banner year for gas development," said Ian Archer, associate director of commodity insights for S&P Global. "We've seen very strong growth in Western Canadian production."

According to Oil and Gas Journal, "More than 60% of oil and gas company executives surveyed by the Federal Reserve Bank of Dallas say they plan to increase their capital spending in 2023 versus last year while an even greater number expect input costs to rise further this year."

Higher Capital Spending in the oil industry plus the ongoing Government push for Climate Change initiatives and solutions have created a perfect storm of success for Enterprise Group, Inc. (TSX: E) (OTCQB: ETOLF). Enterprise provides specialized equipment and services in the build out of infrastructure for energy, pipeline, and construction industries. The Company recently announced its Q4 2022 and FY2022 results and beat expectations

From the news: "The 2022 year has been one of the strongest in recent history. Higher capital spending in the energy industry combined with increased customer activity levels in has resulted in improved results. During the year, Enterprise secured additional supply and services agreements with three of its tier one clients which contributed to the improved operating results. Revenue for the year ended December 31, 2022, was $26,892,249 compared to $18,732,335 in the prior period, an increase of $8,159,914 or 44%. Adjusted gross margin for the year ended December 31, 2022, was $10,879,928 compared to $4,982,731 in the prior period, an increase of $5,897,197 or 118%. Adjusted EBITDA for the year ended December 31, 2022, was $8,147,223 compared to $2,959,020 in the prior period, an increase of $5,188,203 or 175%. Revenue for the three months ended December 31, 2022, was $8,734,471 compared to $5,730,978 in the prior period, an increase of $3,003,493 or 52%. Adjusted gross margin for the three months ended December 31, 2022, was $4,157,875 compared to $2,091,874 in the prior period, an increase of $2,066,001 or 99%. Adjusted EBITDA for the three months ended December 31, 2022, was $3,283,612 compared to adjusted EBITDA of $1,547,549 in the prior period, an increase of $1,736,063 or 112%. Increases in gross margin and EBITDA for the year and the quarter are reflective of increases customer activity in 2022 while maintaining the overall cost structure of the Company."

Continued: For the year ended December 31, 2022, the company generated cash flow from operations of $5,910,830 compared to $3,500,869 in the prior year. This change is consistent with the higher activity during the year. The Company continues to utilize a combination of cash flow and debt to right-size and modernize its equipment fleet to meet customer demands. During the year ended December 31, 2022, the Company purchased $5,569,011 of capital assets primarily for natural gas power generation, upgrading the energy efficiency of existing equipment and meeting specific requests from customers. During this same period, the Company also sold property, plant and equipment and received proceeds $1,216,724 of which were re-invested in new equipment.

Continued: In April of this year, Enterprise Group officially launched a new wholly owned subsidiary, Evolution Power Projects, Inc. ("EPP"). EPP is the leading provider of low emission, mobile power systems and associated surface infrastructure to the Energy, Resource, and Industrial sectors. The Company's innovative methods are delivering to its client's low emission natural gas-powered systems and micro-grid technology, allowing clients to eliminate diesel entirely. A significant portion of Enterprise's capital expenditures for 2022 was for additional natural gas-powered systems, including turbine generators. EPP can now provide mobile micro-grid technology in the 1-megawatt range which has allowed EPP to expand its services into water pumping and drilling support, further eliminating the use of diesel power. Also, EPP's systems are equipped to deliver real-time emission metrics providing its clients the assurances necessary for them to accomplish their ESG reporting and objectives.

Last month another TSX energy service provider, PHX Energy (TSX: PHX) announced the strongest fourth quarter and year end results In Its history. PHX Energy is a growth oriented, public oil and natural gas services company. The Corporation, through its directional drilling subsidiary entities provides horizontal and directional drilling services to oil and natural gas exploration and development companies principally in Canada and the US.

From the news: Fourth Quarter Highlights

For the three-month period ended December 31, 2022, PHX Energy generated consolidated revenue of $157.8 million, the highest level of quarterly revenue in the Corporation's history and an increase of 54 percent from the fourth quarter of 2021.

Adjusted EBITDA from continuing operations increased to $33.9 million, 21 percent of consolidated revenue. This is also PHX Energy's highest level of quarterly adjusted EBITDA and all-time record as a percentage of consolidated revenue. Included in the 2022 quarter's adjusted EBITDA is $6.9 million in cash-settled share-based compensation expense. Excluding cash-settled share-based compensation expense, adjusted EBITDA from continuing operations in the fourth quarter of 2022 was $40.8 million, 26 percent of consolidated revenue.

Earnings from continuing operations doubled to $20.3 million in the 2022-quarter from $9.3 million in the 2021 three-month period.

Ensign Energy Services Inc., (TSX: ESI) a global leader in oilfield services, headquartered out of Calgary, Alberta, operating in Canada, the United States and internationally also reported strong revenue growth in its earnings report last month.

From the news: 2022 HIGHLIGHTS

Revenue for 2022 was $1,577.3 million, a 58 percent increase from 2021 revenue of $995.6 million.

Revenue amounts and percentage of total by geographic area:

Canadian drilling recorded 13,589 operating days in 2022, a 51 percent increase from 8,979 operating days in 2021. Canadian well servicing recorded 47,269 operating hours in 2022, a 30 percent increase from 36,254 operating hours in 2021.

United States drilling recorded 17,928 operating days in 2022, a 46 percent increase from 12,242 operating days in 2021. United States well servicing recorded 124,035 operating hours in 2022, a one percent decrease from the 124,916 operating hours in 2021.

International drilling recorded 3,973 operating days in 2022, an 11 percent increase from 3,574 operating days recorded in 2021.

STEP Energy Services Ltd. (TSX: STEP), an energy services company that provides coiled tubing, fluid and nitrogen pumping and hydraulic fracturing solutions reported Fourth Quarter and Year End 2022 Results last month.

From the news: 2022 ANNUAL HIGHLIGHTS

2022 was an exceptional year for STEP, with the Company achieving record results across many of its key financial metrics:

Consolidated revenue for the year ended December 31, 2022 of $989.0 million, increasing 84% from $536.3 million in the prior year.

Net income for the year ended December 31, 2022 of $94.8 million, or $1.31 per diluted share, compared to a net loss of $28.1 million in 2021, or a $0.41 loss per share. Net income was positively impacted by the reversal of $38.4 million of impairment loss taken in 2020, following the significant improvement in business conditions.

For the year ended December 31, 2022, Adjusted EBITDA was $198.9 million or 20% of revenue compared to $63.0 million or 12% of revenue in the prior year.

Looking ahead for the sector, amid recent oil price spikes it looks like the spending will continue and oil service providers will be a sector to watch for investors.

Get a free investor list of oil and gas stocks at Investorideas.com

https://www.investorideas.com/OGSN/Stock_List.asp

About Investorideas.com - Big Investing Ideas

We publish breaking stock news, stock research, guest posts and create original top rated investing podcasts, plus sector tag articles featuring up and coming companies and industry leaders. Investor Idea's original branded content includes the Crypto Corner Podcast, Play by Play Sports Podcast, Cannabis News and Stocks on the Move Podcast, Cleantech and Climate Change Podcast, Exploring Mining Podcast, Betting on Gaming Stocks Podcast and the AI Eye Podcast. We also create free investor stock directories for AI and tech, biotech, cannabis, cleantech, crypto, defense, gaming, health and wellness, mining, oil and gas, sports and water.

Disclaimer/Disclosure: Investorideas.com is a digital publisher of third party sourced news, articles and equity research as well as creates original content, including video, interviews and articles. Original content created by investorideas is protected by copyright laws other than syndication rights. Our site does not make recommendations for purchases or sale of stocks, services or products. Nothing on our sites should be construed as an offer or solicitation to buy or sell products or securities. All investing involves risk and possible losses. This site is currently compensated for news publication and distribution, social media and marketing, content creation and more. Disclosure: This article featuring Enterprise Group, Inc. (TSX: E) (OTCQB: ETOLF) is a paid for service on Investorideas ( 2250) .More disclaimer info: https://www.investorideas.com/About/Disclaimer.asp Learn more about publishing your news release and our other news services on the Investorideas.com newswire https://www.investorideas.com/News-Upload/ Global investors must adhere to regulations of each country. Please read Investorideas.com privacy policy: https://www.investorideas.com/About/Private_Policy.asp Contact management and IR of each company directly regarding specific questions.

Follow us on Twitter https://twitter.com/Investorideas

Follow us on Facebook https://www.facebook.com/Investorideas

Follow us on YouTube https://www.youtube.com/c/Investorideas

Contact Investorideas.com

800 665 0411

More Info:


Investorideas.com Newswire

This news is published on the Investorideas.com Newswire - a global digital news source for investors and business leaders


Disclaimer/Disclosure: Investorideas.com is a digital publisher of third party sourced news, articles and equity research as well as creates original content, including video, interviews and articles. Original content created by investorideas is protected by copyright laws other than syndication rights. Our site does not make recommendations for purchases or sale of stocks, services or products. Nothing on our sites should be construed as an offer or solicitation to buy or sell products or securities. All investing involves risk and possible losses. This site is currently compensated for news publication and distribution, social media and marketing, content creation and more. Disclosure is posted for each compensated news release, content published /created if required but otherwise the news was not compensated for and was published for the sole interest of our readers and followers. Contact management and IR of each company directly regarding specific questions.

More disclaimer info: https://www.investorideas.com/About/Disclaimer.asp Learn more about publishing your news release and our other news services on the Investorideas.com newswire https://www.investorideas.com/News-Upload/

Global investors must adhere to regulations of each country. Please read Investorideas.com privacy policy: https://www.investorideas.com/About/Private_Policy.asp


That's all it takes to get an article published on Investor Ideas - Learn More





Tech Stocks - Tech Stocks Directory, Tech Stocks News, Research and Resources

Get more Technology stock investor ideas - news, articles, podcasts and stock directories


Get more Oil and Gas - news, articles, and stock directories

Buy a energy guest post on Investorideas.com