Norman Levine comment on ESN.
Essential Energy Services (ESN TSX) Owned for a long time at an initial cost of $2.25 and are buying for new clients at current price.
Essential provides oilfield services for servicing producing wells and new drilling activity to oil and gas producers, predominantly in western Canada. The company operates in two segments, Well Servicing, and Downhole Tools and Rentals. We believe that even with the recent addition of new equipment, Essential’s utilization levels and overall revenue will trend higher year-over-year in 2014. The company’s deep coil tubing market remains hot and Essential has good leverage to the expected LNG build out in Western Canada. It has a yield of around 5.0 percent and a recent sum of the parts valuation of $3.60 shows there is lots of upside potential in the stock.