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Essential Energy Services Ltd T.ESN

Essential Energy Services Ltd. is a Canada-based company that provides oilfield services to oil and natural gas producers, primarily in western Canada. The Company offers completion, production and well site restoration services to a diverse customer base. Its Essential Coil Well Service (ECWS) segment provides completion and production services throughout western Canada. The ECWS fleet is comprised of coiled tubing rigs, fluid pumpers, nitrogen pumpers and ancillary equipment. Its Tryton segment provides a range of downhole tools and rental services across the WCSB and in the United States for completion, production and wellsite restoration of oil and natural gas wells. Its services are offered with coiled tubing, fluid and nitrogen pumping, and the sale and rental of downhole tools and equipment. Its coiled tubing fleet is comprised of generation I, II, III and IV coiled tubing rigs, which are differentiated by their capability to service wells with varying depths and well pressures.


TSX:ESN - Post by User

Post by sunadventureron Dec 24, 2020 3:37pm
180 Views
Post# 32181517

Inventory as a current asset

Inventory as a current asset
I suspect the $32 million of inventory as a current asset is making people believe ESN is more undervalued than it is. Why do you think this as a current asset instead of as a long-term one?

When I think of current assets, I think of that which can be easily and quickly converted to cash. I don't think this "inventory" is nearly as valuable as actual cash or receivables, which skews things when we compare ESN against others because we see the vey large current assets without being more critical about just what is included there.

They are able to get away with that, but for our sake we really should exclude that in the current assets portion of the balance sheet.

What do you think?
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