Canyon Services Group (FRC.TO)

3.6% dividend. A fracker as opposed to a driller. Thinks it will improve. There will be a lot of increase in activity.

Forth largest pressure pumper in Canada, newest fleet. Canadian focused. Easy story to understand. Almost 6% dividend.

Energy services company focusing on pressure pumping. Highly intense drilling requires pressure pumpers to extract oil out of the ground. The intensity of drilling in Western Canada continues to increase so more and more pumping power is required and companies like this will benefit. Higher natural gas price is also going to encourage more drilling. 5.72% dividend with the payout ratio of only 20%. Zero debt; $17 million net available cash and $60 million available line credit.

(A Top Pick Feb 13/12. Down 8.81%.) Greatly reduced his position. Of all the service and pressure pumpers this one is one of the most attractive. Has a dividend and the fastest growth. However, there is a contraction in businesses and day rates as natural gas prices dwindle. Unfortunately he thinks we’re still in another challenging year for natural gas.

(Market Call Minute.) Any time you are going to be able to acquire the stock under $10, you should accumulate. Runs a very good ship with very conservative balance sheet levels of debt.

It is a kind of triangle formation. It is a period of time when volatility is shrinking. Eventually there is a breakout. You don’t want to guess right now which way it will be.

Payout ratio is very, very low and has cash on the balance sheet and will be generating a lot of free cash flow over the next couple of years. Stock has been pretty strong on expectations of a strong recovery in 2014. 5.6% dividend is sustainable. Still feel there are a few bad quarters coming for all the pressure pumpers but this one will be most insulated.

(A Top Pick Feb 13/12. Down 2.53%.) Good name. Certainly has the best growth of all the pressure pumpers in the group. Pays a little bit of a dividend. Still a “go to” name.

(Top Pick Dec 23/11, Down 12.24%) Recently bought back in. Has the best torque to upside of all the pressure pumpers. Offers a dividend, well managed and fastest growth of any pressure pumper. It is more of a trader.

This is a Canadian fracor. The group is out of favour but he thinks it will come back to its $14 target at some stage because he thinks the earnings will be good.

Pressurized pump company. Have grown their business from a capacity of about 110,000 hp in 2010 up to 225,000 this year and plans to grow to 450,000. Supply the pressures that well service companies use on the horizontal drilling and fracing. Although the drilling business in general has suffered in Canada over the last few years, horizontal wells and the fracing have certainly been the sweet spot. Trades at just a little over 8X earnings and yields 5%. Only focused on the Canadian market and doesn’t have to worry about the US competition. Could see it easily breaching $15.

(A Top Pick Oct 13/11. Up 15.96%.) Sold his holdings at $12.75. It became obvious that there was increasing capacity entering into Cdn and US markets. Longer-term, the need for fracing is very, very high.

5.1% dividend yield. Ranks well with him. Earnings expected to decline in 2012. Then expected to improve 11% next year. He owns other oil and gas services stocks. He thinks it will go along for the ride.