High Arctic Energy Services Inc T.HWO

Alternate Symbol(s): HGHAF

Energy Oil & Gas Equipment & Services

High Arctic Energy Services Inc. is a Canada-based energy services provider. The Company provides pressure control equipment and equipment supporting the high-pressure stimulation of oil and gas wells and other oilfield equipment on a rental basis to exploration and production companies, from its bases in Whitecourt and Red Deer, Alberta. The Company's operations involve the rental of pressure control and other oilfield equipment to exploration and production companies operating in Canada. In western Canada, it provides pressure control equipment on a rental basis to a number of exploration and production companies. Its North American service lines are oilfield rental equipment. Its rental services offer a lineup of oilfield rental equipment for drilling, completions, workover and abandonment oil and gas operations.

TSX:HWO - Post by User

High Arctic Energy Services Inc > Precision drilling buys HWO Well Servicing

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Comment by JonathanJSmithon Jul 18, 2022 8:51am

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Post# 34830816

RE:Precision drilling buys HWO Well Servicing

It makes sense for them to divest and concentrate on their bread and butter. $41.6MM is a nice chunk of change to have in one's arsenal.

Once all four rigs are operational (Maguire alludes to the end of 2023), HWO should generate anywhere from $200-$250MM/yr. FCF should be around $25-$30MM by that time. If the share count is kept below 50MM, shareholders are looking at around $0.50/sh FCF annual generation (starting in 2024). Maybe the dividend will be upped by then. Time will tell the tale.

Cheers,

JJ

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Rig Count Soars as Utilization Surpasses Industry Averages