Ensign Energy Services Inc ESVIF

Primary Symbol: T.ESI

Energy Oil & Gas Drilling

Ensign Energy Services Inc. is a Canada-based international oilfield services contractor. The Company provides oilfield services to the oil and natural gas industry in Canada, the United States and internationally. Its services include contract drilling, directional drilling, underbalanced and managed pressure drilling, rental equipment, well servicing and production services. It offers a fleet of rigs, a range of drilling services, and also delivers customized solutions. The Company's well services include well completion and re-completions, well abandonment, production workovers, downhole pump servicing and/or replacement, well sidetracking and deepening, fishing and swabbing operations, and corod injection. The Company's ASR 150, is a fully automated service rig that eliminates all manual manipulation of tubulars from the pipe rack to the make-up of a connection, reducing the number of personnel on the rig floor. It provides pressure testing, tool rentals or torque wrenches.

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Ensign Energy Services Inc > Teal Linde - BNN - TOP PICK

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Comment by malx1on May 16, 2023 12:40pm

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Post# 35450578

RE:RE:Teal Linde - BNN - TOP PICK

DeanEdmonton wrote: Well, this has been a top pick on every appearnace by him over thepast near 3years. So far heisn'tgettign paid off any better than I am. Hope this turns around sometime soon.Only consulation is Precision is just as unloved and undervalued. Hard to believe how unattractive to investors the Canadian Oil and Gas Industry has become. If we get rid of Turedope maybe that will start to change.

Possibleidiot01 wrote:
In his last scenario, debt repayment of $200 million , ups market cap 50%.

ENSIGN ENERGY SERVICES (ESI TSX)

Last purchased on March 15, 2023 at $2.96

Ensign just completed its best first quarter since 2014 back when its stock traded over $10 per share, yet today its stock is trading around $2. For the current year, the company expects to generate around $200 million in free cash flow. Now investors often get excited with anticipated free cash flow yields of 15 or 20 per cent. In the case of Ensign, with its $400 million market cap, its $200 million in free cash flow works out to a 50 per cent free cash flow yield. For perspective, a 50 per cent free cash flow yield represents enough cash flow to buy back all of a company’s shares in two years. Or they could return half, or $100 million, of their free cash flow to shareholders in the form of a dividend, which would result in a 25 per cent dividend yield. If Ensign decided to pay such a dividend, you can be certain the stock won’t be sitting around $2 per share. The stock would have to double in price just to bring the dividend yield down to 12.5 per cent, which would still be very high. The buying back the company in two years or 25 per cent dividend yield simply provide scenarios illustrating just how inexpensive Ensign’s stock has become. But before any buy backs or dividend reinstatements occur, the company is prioritizing earmarking its $200 million in free cash flow to paying down its large debt load incurred from its takeover of Trinidad Drilling in 2018. But even the process of paying down $200 million in debt should translate to a corresponding $200 million increase in the equity value of the company, which would translate to a one-year 50 per cent boost to the company’s stock.