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Calfrac Well Services Ltd T.CFW

Alternate Symbol(s):  CFWFF

Calfrac Well Services Ltd. is an independent provider of specialized oilfield services in North America and Argentina, including hydraulic fracturing, coiled tubing, cementing and other well stimulation services. Its North America segment provides fracturing services to oil and natural gas companies operating in the Williston Basin located in North Dakota and the broader Rockies region. Its Argentinean segment provides fracturing, coiled tubing and cementing services to oil and natural gas companies operating in the Neuquen, Las Heras, and Comodoro Rivadavia regions. It provides solutions for fresh and high TDS brine applications, support for high viscosity friction reducer fracture fluid systems, along with all traditional industry applications of gel based, crosslink and energized fracturing needs. Its coiled tubing service line offers capability in coiled tubing completions and interventions. It offers primary and remedial cementing services in a variety of wells.


TSX:CFW - Post by User

Post by Contrarian333on Jan 05, 2021 6:40pm
442 Views
Post# 32229523

Calfrac way undervalued!

Calfrac way undervalued!In reading the 2019 annual report one can see that although it was a comparably difficult year for Calfrac they still managed to generate $159m in EBITDA.  I chose 2019 because that was the last kind of "normal" year for their operations pre covid, etc. The price of WTI averaged $57 that year.  Today's equity market cap is $129m (37.5m s/o X $3.45) plus there is another approximately 45m shares from an in the money convertible.  Assuming those bonds are converted you have a fully diluted market cap of 82.5m shrs X $3.45 or $285m.  This looks pretty cheap when compared to $159 in EBITDA - like < 2X cheap.  WTI is currently $50.  Seems like an interesting way to participate in an improved oil service industry environment................i.e. Goldman Sachs commodity super cycle.  Any comments/observations from others on what I may have missed?  BTW - I also like that George Armoyan is a significant shareholder.
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