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Step Energy Services Ltd T.STEP

Alternate Symbol(s):  SNVVF

STEP Energy Services Ltd. is a Canada-based energy services company. The Company is engaged in providing coiled tubing, fluid and nitrogen pumping and hydraulic fracturing solutions. The Company’s segments include Canadian Operations and the United States Operations segments. It delivers completion and stimulation services to exploration and production (E&P) companies in Canada and the United States. The Company’s Canadian services are focused on the Western Canadian Sedimentary Basin (WCSB), while in the United States, its fracturing services are focused on the Permian basin and its coiled tubing services are focused on the Permian and Eagle Ford in Texas, the Uinta-Piceance, and Niobrara-DJ basins in Colorado and the Bakken in North Dakota.


TSX:STEP - Post by User

Post by drunk@noonon Nov 04, 2023 8:24am
190 Views
Post# 35717234

Seems we have a 35% free cashflow yield here. And between

Seems we have a 35% free cashflow yield here. And betweenq4 of this year and q1 of next,  they can cut debt down to sub 30 mill if they want. So at the end of q1 next year, with next to no debt to pay down, What are they going to do with the 100 plus million a year of cashflow coming through the door? A piddly 10% NCIB isn't going to do it, when 35% of excess cash is coming through the door. Has management alluded to how they plan to address the capital return to sharehollders, once debt is down to miniscule levels. I realize they are spending to switch fleet from deisel to gas, but alot of that is taken care of with the current level of cap ex spending, from the breakdown of growth cap ex to maintance cap ex they give in their sedar md and a statements.
Would love to see these companies start doing duch auctoins that would take 1/4 to 1/3 of their shares outstanding at  once. If of course q1 of next year unfolds as expected.
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