Bullboard - Stock Discussion Forum Source Energy Services Ltd T.SHLE

Alternate Symbol(s): SCEYF

Source Energy Services Ltd. is a Canada-based company that focuses on the integrated production and distribution of frac sand, as well as the distribution of other bulk completion materials not produced by the Company. The Company provides its customers with an end-to-end solution for frac sand supported by its Wisconsin and Peace River mines and processing facilities, its Western Canadian... see more

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Source Energy Services Ltd > 3q24

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Post by Ernieandbert on Nov 06, 2024 8:29pm

3q24

35mm ebitda? 140mm run rate. Even if you haircut that to 130mm this thing is trading at about 2.7x. It won't be a publicly traded company for long...

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Comment by iamthesultan on Nov 07, 2024 11:21am

Damn, that was a great quarter! There were some pretty direct questions on the conference call asking if there were companies sniffing around. Scott answered "no", but at 2.3x this is a steal of deal. Good luck all.

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Comment by Ernieandbert on Nov 07, 2024 2:45pm

And 35% free cash flow yield??? Makes look even cheaper. Crazy cheap. They are in the nviable position like their customers to now make capital allocation decisions between paying down debt, capex and returning some of that free cash flow to shareholders through share buybacks. $22 gets EV to only 3x. Tons of downside protection here at $15. Too cheap ...more

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Comment by Ernieandbert on Nov 20, 2024 4:33pm

Nice little run but still too cheap. Even at $25 it is barely trading above 3x 2025 EV/Ebitda and still a stout 20% free cash flow yield. And with almost 50% market share? Not sure how this doesn't get taken out by someone as soon as they do their refi.

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Source Energy Services Ltd