Essential Energy Services Ltd. (ESN.TO)

(Market Call Minute.) Not looking to get into this one right now. A little weakness in their 1^st quarter. She is just going to wait and see how the next few quarters shape up.

Released their 1^st quarter results. Utilization was difficult for them so the stock has been relatively flat. Specializing in deep coil operations. A very good suite of assets and a very good balance sheet with a strict allocation of capital. Good management.

Buying for new clients. First quarter weather hurt their earnings. He thinks this is a second half story. The dividend is safe because it is well covered.

Likes the company. They are specialists in having a lot of coil tubing units to service wells and a variety of things. Applies to horizontal drilling and fracking, plus clean up. Trading well below $3 and should not be. Solid financials. Many wells are being drilled deeper and there are not that many smaller service companies that can go on a lease with them to provide a lot of highly specialized tools. Good balance sheet and solid dividend.

Like all other drilling companies they have been affected by the weather, which has depressed earnings and probably will for the 1^st quarter as well. He is viewing this as a 2^nd half stock. If it were broken up and sold it would be worth about $3.50 which shows it is severely undervalued. Has a great yield (4.38%) which is safe. Good management. Very well run. Have good prospects for the year.

Likes the energy services sector, but he is buying higher market cap companies such as Calfrac (CFW-T), CanElson Drilling (CDI-T) and Canyon Services (FRC-T) which all 3 pay dividends. With the pullback of this company, it may be an opportune time to look at it again. All Canadian service companies should have a better 2^nd half on volumes and margins. Dividend of 4.5%.

An oil services company. Good balance sheet. 5% dividend. Basically own the coil tubing business and pricing there is very, very good. Sum of the parts is valued at $3.60. We are entering a strong seasonality for oil service companies.

This is going down and he sees a lot of volume. If the price is dropping and the volume is spiking, at some point there is going to be a reversal where the price bounces off a value level. Sees a really strong support level at $2.09 which is where this is probably going to be heading to. Wait for sign of reversal.

Biggest part of their business is coiled tubing in the oil/gas industry, mainly in Western Canada. This was a business that historically was not that high of a value proposition. Anybody could buy a rig and stick coiled tubing into a well, but as these wells became more and more expensive because of deeper and longer lateral lengths, it requires much more sophisticated equipment and a higher skilled labour force. This is the market leader in Canada. Thinks they are going to start seeing some pricing increases as utilization continues to grow and they keep adding equipment for these deeper and deeper wells. 4.5% dividend yield. Prospects look pretty positive.

They are the purveyors in Western Canada for coiled tubing. When companies need to go down deep to scope a well, this is the company that is very good at it. Ranks in the middle of the pack for his process. Good dividend and management is very strong. Not looking at this one right now because of their earnings profile. Decent dividend yield.

Has really good management and good balance sheet. Moving into US for the first time. Almost exclusively oil. The whole sector has been held back because it wasn’t a great drilling season. Their coil tubing can be used in Nat Gas for LNG as well as oil.

Although it has had a very good run, he thinks it has more potential. Likes the space and what they are doing. 4.1% dividend yield.

Energy services with renting of tools and helping out on completion of wells. This should benefit from increased activity, not only on some of the larger plays in the Montne and Duvernay, but just generally. If AECO gas price is $3.80 today, that makes for a few more wells being drilled on the gas side. He is playing the service side more through the fracers.

Likes it. Likes management. Company could be in play and could be a takeover candidate. Likes the service side of this company. 3.9% dividend.

Has been his very favourite holding for a very long time. Great assets. They do a lot of deep coiled tubing while servicing, which is stuff that can go extremely deep with a wider diameter than most of the regular well service guys. If you think LNG is going to come to Canada and we are going to ship the stuff off to China, this company should get some of those contracts. Inexpensive.