RE:RE:My Thoughts - take them for what they are.I agree with you in concept. I think when service cos start to move, they will move hard. The one thing that you need to consider however is whether E, PRW, and MCR are actually worth what they were trading at before the drop in the first place.
MCR - definitely not. Almost pure play pipeliner operating with very little footprint across the basin. Low barrier to entry business and tons of competitors. Trading at 7+x EBITDA and 60-70% goodwill value? No way. PRW I think the value was fairly reasonable.
My concern with E has been and always will be management. No integration of the businesses (yet expect a boost in trading multiple) and their constant pumping of the activity levels and things on the horizon that they have yet to deliver on with any of their businesses (except AT, which I think was an AT thing, not an E management thing). They are going to have a good Q4. They are going to have an 'ok' Q1. But rest assured, they will spend 50% of the conference call pumping all of these great initiatives that they will never deliver on.
I can't wait to be 12 months out and compare how they actually did with this new Direct Pipe system compared to the CEO's 'guidance' on the last call ($30-$40 million revenue; 30% EBITDA margin, for a $6.5 million asset bought on a rent-to-own basis). I'm sure there will be a sizeable discrepancy.