Secure Energy Services Inc T.SES

CIBC

[retiredcf]

EQUITY RESEARCH

June 6, 2024 Flash Research

SECURE ENERGY SERVICES INC.

Substantial Issuer Bid Results As Expected
 

SECURE’s substantial issuer bid (SIB) results are in line with expectations,

with the company expecting to execute the full $250MM purchase at the

bottom end of its issuer bid range. SECURE will acquire and cancel ~22MM

shares at a purchase price of $11.40/sh, which is at the bottom end of

$11.40-$13.00/sh price range for its SIB program.
 

The SIB was over subscribed, with 40.5MM shares validly tendered, and

approximately 82% of tendered shares at the $11.40/sh purchase price will

be purchased by the company. Our model already reflects the full repurchase

at the low end of the range and we see the shares trading at ~9% FCF yield

in 2024.