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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

Post by lngisformeon Aug 02, 2024 9:01am
210 Views
Post# 36160330

Market cap $35m, working capital $33m, cash balance $22m

Market cap $35m, working capital $33m, cash balance $22mThe market isn't putting a lot of value into all the assets of High Arctic nor its $130m tax loss pool. 

A rerate will occur as soon as the company is split in two. 

Suspect the North American operations with team Snubbing and the rental business along with $130m tax pool will be if interest to potential acquisitive entities. 
How long one would have to wait I think is a short duration. 

The PNG half may require a longer holding period yo see a meaningful return but a buyout there is also a distinct possibility in the short term as well. 

The current $0.70 price floor is basically a veritable risk free entry point. 

The stumble in listing the PNG spinco should be rectified in short order but they gave no indication if expected timing, no update on finances, no update on earnings dates for the two companies, no indication on new management members for North American operations. As a result impatient investors are dumping at basically cash position with no regards to assets held. 

An unfortunate end to "unlocking" value for shareholders not willing to wait out another short spell to realize sine gains. 
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