Couldn't resist posting the Western Energy Services outlook(See below)
Hockeyz, we see the same value in Akita.Your post are factuals.
Akita had 6 rigs working in Canada 2 weeks ago.Today, they have 8.
One was added today for Cenovus.
Again, Q2 will not be good.The catalyst will come from the outlook on Q3,Q4, 2025 and the
debt reduction.
Don't take this to the bank but i have a feeling that we will start to see a much
better valuation of our investment in Akita before year end.
Market participants usually anticipate future improvement ahead of time.
I was again looking at the float this morning.
There are 38,080,407 A shares outstanding.Assuming that Aegis,Sentgraf,Foyston,
Linda Southern,Colin Dease,Darcy Reynolds and myself are not sellers, we are left
with 23,919,677 shares.
At last night close of $1.42 this is just shy of 34 million$.
We know that with such a small market cap, Akita does not attrack institutional investors.
but like Hockeyz wrote "There is a big difference between a great company and a great investment. It can be the best company in the world (with a terrific sustaining competitive advantage), but a bad stock. It all depends how much you pay for that great company." When small investors realize how cheap this company is trading at versus what it is worth and when they start seing much improved results,it won't take much buying power to move a float cap of 34 million$ Outlook
In 2024, commodity prices are being impacted in the short term by concerns surrounding demand from continued uncertainty concerning the ongoing conflicts in Ukraine and in the Middle East. In addition, OPEC announced a gradual unwinding of production cuts. Events such as these contribute to the volatility of commodity prices. The precise duration and extent of the adverse impacts of the current macroeconomic environment and global economic activity on Western's customers and operations remains uncertain at this time. Additionally, the threatened shutdown and relocation of a portion of the Enbridge Line 5 pipeline and the recent challenge and notice of civil claim related to the Blueberry River First Nations agreement in British Columbia by the Treaty 8 nations, have contributed to continued uncertainty regarding takeaway capacity and resource development. However, the Trans Mountain pipeline expansion commenced operations as of May 1, 2024 bringing much needed takeaway capacity to the market. The Trans Mountain pipeline project, the Coastal GasLink pipeline project, which is mechanically complete and expected to be online in 2025, and the LNG Canada liquefied natural gas project in British Columbia , now more than 85% complete and expected to be online in 2025, may contribute to increased industry activity. Controlling fixed costs, maintaining balance sheet strength and flexibility, repaying debt and managing through a volatile market are priorities for the Company, as prices and demand for Western's services are expected to continue to improve.
Energy service activity in Canada will be affected by volatile commodity prices, the continued development of resource plays in Alberta and northeast British Columbia , ongoing pipeline completions that will increase takeaway capacity, environmental regulations, and the level of investment in Canada. With Western's upgraded drilling rigs, the Company is well positioned to be the contractor of choice to supply drilling rigs in a tightening market. Western is also active with three fit for purpose drilling rigs in the Clearwater formation in northern Alberta. In the short term, the largest challenges facing the energy service industry are volatile commodity prices and the restrained growth in customer drilling activity due to their continuing preference to return cash to shareholders through share buybacks, increased dividends and repayment of debt, rather than grow production. If commodity prices stabilize for an extended period, then as customers strengthen their balance sheets by reducing debt levels, we expect that drilling activity will increase. In the medium term, Western's rig fleet is well positioned to benefit from the increased drilling and production services activity expected to be generated by the LNG Canada liquefied natural gas project and the Trans Mountain pipeline expansion. The total rig fleet in the WCSB has decreased from 439 drilling rigs at June 30, 2023 to 385 drilling rigs as of July 23, 2024 , representing a decrease of 54 drilling rigs, or 12%, which reduces the supply of drilling rigs for such projects. Western is an experienced deep horizontal driller in Canada , with an average well length of 7,550 meters drilled per well and an average of 12.9 Operating Days to drill per well for the six months ended June 30 , 2024. It remains Western's view that its upgraded drilling rigs and modern well servicing rigs, reputation for quality and capacity of the Company's rig fleet, and disciplined cash management provides Western with a competitive advantage.