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High Arctic Energy Services Inc T.HWO

Alternate Symbol(s):  HGHAF

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

Comment by JonathanJSmithon Oct 02, 2022 9:21am
212 Views
Post# 35000071

RE:RE:RE:RE:RE:Bad news

RE:RE:RE:RE:RE:Bad newsThat's a good question...why?

You mentioned some valid points and I agree that we're in a secular bull market (which should last several years).

A couple of other reasons why the stock isn't performng well could be:

(a) macroeconomic environment - we're heading into a recession and as they say, "a lowering tide lowers all boats."
(b) Although Maquire hinted at a lot of potential business thereby getting all rigs into service within the next couple of years (or sooner), there is currently only 1 contract for drilling (rig 103) solidified, starting this quarter. I believe that once subsequent contracts are announced, then we'll start to see significant appreciation in the stock.

Meanwhile, shareholders can enjoy a ~4% dividend while waiting for contracts to materialize; moreover, investors can consider doing one's own DRIP - i.e. use the cash dividends received to buy more stock. As you mentioned, the risk:reward ratio is pretty low at this point however, things can change on a dime. Fingers crossed. :)

Cheers,

JJ
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