High Arctic Energy Services Inc (HWO.TO)

Bulk of their business is in Papua New Guinea, a relatively inefficient oil/gas service market where they get very nice margins for their contracts. This is a growth area. They are doing really well and in a sense they are swimming against the tide of what is happening with so many of these oil/gas service companies. Given what has happened in Western Canada in the last 24 hours, there is not a lot of domestic risk there. Reasonably priced. As oil continues to drift higher, things will only get better here.

They confused everyone with the name. Their biggest earnings generator is in New Guinea. They have an island and two new rigs being built. Good solid dividend of 5%+ and a good revenue stream.

He would have no problem adding to this position at this time. However, if you are looking for some stocks that can go a long way, he likes this, but likes today’s 3 Top Picks more.

After he does all his research and the price of oil bottoms out, it might be one that he would add to. Very high ROE and a great company. Sold off with the oil complex, but because it is a high-quality name, it hasn’t come off anywhere near as hard as some of the other players. Good management team.

A great name. Got knocked around like crazy in the last few weeks, which was completely overdone. They operate in Papua New Guinea, and have recently expanded their operations. Just bought 2 rigs, and they still have to contract the 2nd one. That is the catalyst that will get the shares really moving.

Has owned this before. This is a unique little business where the majority of their business is driven from Papua New Guinea. They have a couple of rigs that are extremely successful. Thinks the stock probably continues to do well over time. Pays a nice dividend. He would wait to see what kind of pull back we continue to see.

This is a really interesting name. Do a lot of work in Papua New Guinea, but have a big Canadian operation as well. Also, have a lot of heli-rigs. He is very positive about the story. Extremely cheap with a nice safe dividend. 3.5% dividend yield.

Doesn’t cover this, so his knowledge is not that deep. Have good dividends, good growth and a good management team. Have done some good acquisitions. The sector itself looks pretty good. Oil/gas companies, with the renewed pricing of oil, are starting to spend more. The service sector is looking good. One of those where it is a nice small company at the right time in the right sector, and gives you a dividend while you are waiting.

Used to own it, and regrets selling it. Thinks it has legs and is a turnaround story. Have some international operations that could kick in, in a big way. Well run. Strong management team. Valuation is reasonable. Decent dividend.

Has one of the most interesting business models that you will find for an oil service company. They try to dominate a particular area, and then build a big moat around their business. Have a lot of service and drilling rigs that work in Papua New Guinea, where Exxon is bringing on stream the most recent LNG facility. Growing at a good rate. Good solid balance sheet.

Of all the oil/gas services, this would be his #1 name. Has been buying in the $5 range.

He tends to have exposure to energy service companies. They are one of the few companies on the ground in New Guinea right now. 3.35% yield. About 8 times earnings.

Fascinating company, relatively illiquid for a long time. They are dominant as an oil services company in New Guinea. There are lots of other companies very active there. They provide rigs, mats, different drilling facilities. Very mountainous areas and rainy so there are high barriers to entry from competitors. Very high margins. Nice dividend and nice balance sheet.

Likes this and is adding to his position. Had a great quarter. Not as well known in the oil/gas services stocks, but the company is really, really profitable. Could have a really good run for the next 2-3 years. Could be the beneficiary of people looking for a fresh name. Yield of 3.5%.

An energy services play based in Alberta with operations in the Caribbean. Pays a nice dividend. You are looking at a backdrop of increasing activity in North America and you should be fine. Caribbean assets have some upside that is maybe a little bit better than Western Canada. Stock has done well and it’s probably going to continue to do well. Nice dividend too.