Trican Well Service Ltd. (TCW.TO) Buy, Sell…

Trican Well Service Ltd. (TCW.TO)

6.15

+0.07 (1.15%)

as of Sep 23, 2026, 8:00:00 pm Market Open.

203 watching

COMMENT

It provides energy services in Alberta as well as some in the U.S. He doesn't own energy services or exploration companies. Sticks to pipelines.This type of company does well when the sector does well.

TOP PICK

His theme today is leverage, nice yield, and ability to grow cash. No debt. Trades at 2.5x EBITDA multiple, down from its historic 5x. Services are picking up. Advantaged on the gas side, purest publicly listed frack play in Canada. First Nations issues resolved. LNG Canada could mean a 10% rig pickup. Ultra-clean balance sheet. Nice yield of 1.25%.

(Analysts’ price target is $5.53)

HOLD

Depreciation is real. The more you pump, the faster the equipment wears down. Well service activity is much higher than 2-3 years ago. Rig counts are moving up, pricing is higher, and TCW will benefit. Sweet spot in the cycle right now, but he has concerns about length of cycle. Any near-term softening in nat gas price could negatively impact next year's activity.

BUY ON WEAKNESS

Likes service side of the business in energy. Producers not drilling as much as in prior energy booms. Expecting increased drilling/service demand for the long term.

COMMENT

Would purchase TCW than PD. Owns neither. The collapse on oil price will impair spending further than maintenance capital. There is always a bad actor that ruins the pricing power. Would prefer the producers.

COMMENT

TCW vs. CFW Issue for CFW has been the balance sheet. Lots of debt. Concerns about solvency. Upswing in the sector is helping them. Whereas TCW has a clean balance sheet with rising fundamentals that's all going to equity holders. TCW is a safer blue chip.

DON'T BUY

Doesn't see much upside here, though there will be pricing power finally for the pressure-pumpers now that foreign players have left Canada. He begs companies like this not to invest excess money to drill a lot, just keep drilling flat. And use excess cash to buy back shares. The space is less competitive than before. But there are lower returns with service companies than before. Also, their biggest shareholder has been selling shares.

DON'T BUY

He does not own any service names. Oil company spending will go to dividend increases, share buybacks or deleveraging. Production growth related spending is a couple years away. Bullish elements for gas has been offset by decrease in production. It is too expensive right now for him to buy.

BUY

He prefers services companies to producers. Existing wells decline quickly. Services companies have gear that you don’t have to worry about it declining. Insiders have been buying more recently. This one could be the last one standing.

TOP PICK

Their debt is only 8% of equity. They use cash flow to buy back their stock. They are the dominant fracker in Canada. He expects Q2 and Q3 to be tough quarters, but by Q4 there will be a lot of natural gas drilling. His price target is $1.50. If you can buy it under $0.60 it makes sense. Yield 0% (Analysts’ price target is $0.82)

PAST TOP PICK

(A Top Pick May 21/19, Down 50%) He figured that oil was near the bottom of the cycle when he bought this last year, but the virus and oil crisis have pushed energy lower. TCW's managers have been buying shares, which encourages him. Also, their balance sheet is strong, especially debt-equity, compared to its peers. This is positioned to bounce back.

DON'T BUY

It is difficult to be bullish on the service sector. The rig count in Canada will be decimated he thinks. When you look at the opportunity set out there, he thinks there are better opportunities.

BUY ON WEAKNESS

The company has a small debt level, but after selling some assets it should become debt free. They are using free cash flow to buy back shares. Under $1 this is a very cheap stock. He expects to begin buying himself soon. They are a major player in fracing in Canada.

WATCH

Energy has been bad but energy services has been really bad. He would look to add above $120.

PAST TOP PICK

(A Top Pick Mar 11/19, Down 25%) It is still a little early. Their balance sheet is quite pristine. A slight improvement in sentiment in the sector can cause the share price to jump up.

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Trican Well Service Ltd. (TCW.TO)