CIBCEQUITY RESEARCH
October 29, 2021 Flash Research
SECURE ENERGY SERVICES INC.
Q3/21 First Pass: EBITDA Generation Exceeds Expectations As Synergies Start To Take Root
Our Conclusion:
The first consolidated quarter for SECURE/Tervita was a good one, with EBITDA generation that exceeded estimates. Synergies realized during the quarter totalled ~$7MM, and management expects it should achieve nearly half of its $75MM synergy target by the end of 2021. We would not be surprised to see the company exceed this amount in the fullness of time, and quick progress on the synergy front should bode well for EBITDA generation through Q4/21. In the near term, we expect SECURE’s business lines should benefit from increased operator activity across the basin, and take this update as being supportive for the shares.