or
Remember me
Back
His theme today is leverage, nice yield, and ability to grow cash. No debt. Trades at 2.5x EBITDA multiple, down from its historic 5x. Services are picking up. Advantaged on the gas side, purest publicly listed frack play in Canada. First Nations issues resolved. LNG Canada could mean a 10% rig pickup. Ultra-clean balance sheet. Nice yield of 1.25%.
Trican Well Service (TCW TSX)
Last purchased early April at $3.00.
The only publicly traded pure-play frack services provider in Canada. Offers leverage to increases in Canadian drilling activity and/or improving margins. Stock is trading at half its historic multiple despite strong industry fundamentals, margins that have increased 50 per cent since 2021, a five per cent yield and a net cash position. Near-term activity increases from NE B.C. due to First Nations resolution and longer-term, think of services needed once LNG Canada is running in 2025/26. Downside protection from having no debt.