Ensign Energy Services Inc T.ESI

Earnings Report was a BIG Flop

[DeanEdmonton]

SP running off pretty hard. Easy to see that investors had expected a lot better results. Ensign keeps buying stuff and spending a ton on it, but it sure isn't translating into better revenue and profits. The debt load this company is packing is a constant issue. If they don't get a big jump in sales over the next 6 months they are going to have a major problem. Only upside is the demand for gas and oil is really high, so even completions and re-works should provide for higher levels of activity than they have been seeing.

[morrisminiman]

I was surprised at the runup. Did anyone really expect big numbers? This is an oilfield services company. Everyone knows oil co's have not been expanding production for the past year, they have been focussed on paying down debt and share buybacks, so why would you expect a big jump in profits for ESI?  Having said that the taps are about to turn on, which is why ESI is investing for what

[Bullchart1]

Things are being put in place for crude 100-120 for some time. Something like 2011 to 2013 ESI will be busy. Most Companies are making good money over 45 a Bl.  

[morrisminiman]

Yes that is my point. Things are getting ready to take off, so we shouldn't be too concerned about these earnings results as they reflect what already happened for the past months. And the fact that ESI spent a lot of money. ESI will be getting very busy here on in. If they have spent money to get equipment this is very good, as I understand getting equipment is very difficult these days