Secure Energy Services Inc T.SES

Alternate Symbol(s): SECYF

Energy Oil & Gas Equipment & Services

SECURE Energy Services Inc. is a Canada-based environmental and energy infrastructure company. The Company operates through three segments: Environmental Waste Management (EWM) Infrastructure, Energy Infrastructure and Oilfield Services. Its EWM Infrastructure segment includes a network of waste processing facilities, produced water pipelines, industrial landfills, waste transfer facilities, and metal recycling facilities. Through this infrastructure network, the Company carries out business operations, including the processing, recovery, recycling and disposal of waste streams generated by its energy and industrial customers. Its Energy Infrastructure segment includes a network of crude oil gathering pipelines, terminals and storage facilities. Through this infrastructure network, the Company is engaged in the transportation, optimization, terminalling and storage of crude oil. Its Oilfield Services segment includes drilling fluid management, and project management services.

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Secure Energy Services Inc

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Post by retiredcfon Oct 14, 2021 8:18am

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Post# 34004312

RBC Notes

October 14, 2021

Oil & Gas Services: 3Q21 preview
Born to run

Our view: Third quarter reporting season for oilfield service providers begins on October 19. Our estimates are slightly below consensus as we true-up for the impact of near-term supply chain headaches and weather events. We maintain our view that strong E&P cash flows and growing global oil demand should continue to drive a recovery in rig count activity. Increased activity levels should translate into higher revenue and margins for service providers in 2022 onwards, albeit within the context of E&P capital discipline.

Activity levels moving on up. The Baker Hughes rig count for the lower-48 averaged 484, up 11% q/q, and exited the quarter at 511. In Canada, active rigs averaged 158, up sharply y/y and 12% above 2019 levels. Our EBITDA estimates generally remain below the street, as we expect supply chain constraints and weather events to factor into near-term margins while pricing increases work their way through the system.

Favourite stocks. We see several attractive opportunities within our US and Canadian-listed coverage. We favour stocks with strong growth prospects, EBITDA & FCF margin outlooks, underpinned by strong balance sheets. Our favourite names remain BKR, SLB, HP, PSI, and SES.