Western Energy Services

WRG-T

Analysis and Opinions about WRG-T

Signal
Opinion
Expert
BUY
BUY
October 9, 2018

The company is very cheap in terms of price to book. Their book value was $4 at the end of June. However, they have a debt problem: $211 million of debt compared to an equity value of $369 million. He sees this as a takeover candidate especially now because he is seeing consolidation in the rig industry. When the industry turns around, this company will be very profitable. Utilizations rates go from 20% to 70% or 80% and much of the increased cash is profit. In addition, when rigs are busy, rig suppliers have pricing power. So, there can be an increase of 10x in profitability.

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The company is very cheap in terms of price to book. Their book value was $4 at the end of June. However, they have a debt problem: $211 million of debt compared to an equity value of $369 million. He sees this as a takeover candidate especially now because he is seeing consolidation in the rig industry. When the industry turns around, this company will be very profitable. Utilizations rates go from 20% to 70% or 80% and much of the increased cash is profit. In addition, when rigs are busy, rig suppliers have pricing power. So, there can be an increase of 10x in profitability.

DON'T BUY
DON'T BUY
August 17, 2018

He would not own this company, because the market cap is too small for the liquidity. Their leverage is higher than their peers – 3.4 times EBITA.

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He would not own this company, because the market cap is too small for the liquidity. Their leverage is higher than their peers – 3.4 times EBITA.

PAST TOP PICK
PAST TOP PICK
May 1, 2018

(A Top Pick July 28, 2017. Down 23%). This is quiet money. It’s a driller. Its book value is $4.15, which is much higher than its trading price. This is a Canadian driller with only 3 rigs in the United States. Its price hasn’t improved because it is locked in Canada. The AECO price (http://www.gasalberta.com/gas-market/market-prices?p=pricing-market.htm) is about $2 but will be $2.75 to $3.00 by Q4. Similarly, the NYMEX price (https://www.eia.gov/dnav/ng/NG_PRI_FUT_S1_D.htm) was up a nickel today even as oil went down, could by $4 by Q4.

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(A Top Pick July 28, 2017. Down 23%). This is quiet money. It’s a driller. Its book value is $4.15, which is much higher than its trading price. This is a Canadian driller with only 3 rigs in the United States. Its price hasn’t improved because it is locked in Canada. The AECO price (http://www.gasalberta.com/gas-market/market-prices?p=pricing-market.htm) is about $2 but will be $2.75 to $3.00 by Q4. Similarly, the NYMEX price (https://www.eia.gov/dnav/ng/NG_PRI_FUT_S1_D.htm) was up a nickel today even as oil went down, could by $4 by Q4.

PAST TOP PICK
PAST TOP PICK
April 3, 2018

(A Top Pick June 12, 2017. Down 48.76%). This is a driller. Oil service stocks are always more volatile. The drillers are all cheap now. This is on his Action Alert buy list. The company’s book value is $4.19. He has a $2.50 one-year target. This stock traded at $11 in 2014. In bull markets these stocks have a high beta. Western doesn’t have a debt problem. It owes $265 debt compared to $386 in equity. This is lower than Calfrac and Precision. Western’s biggest lender is AIMCO, which knows the oil industry well. AIMCO is also an investor in Western.

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(A Top Pick June 12, 2017. Down 48.76%). This is a driller. Oil service stocks are always more volatile. The drillers are all cheap now. This is on his Action Alert buy list. The company’s book value is $4.19. He has a $2.50 one-year target. This stock traded at $11 in 2014. In bull markets these stocks have a high beta. Western doesn’t have a debt problem. It owes $265 debt compared to $386 in equity. This is lower than Calfrac and Precision. Western’s biggest lender is AIMCO, which knows the oil industry well. AIMCO is also an investor in Western.

PAST TOP PICK
PAST TOP PICK
January 15, 2018

(A Top Pick Jun 12/17, Down 32%) This was a top pick to buy some time after the show. It did quite well after the weakness he was looking for in order to buy. They are a Canadian driller.

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(A Top Pick Jun 12/17, Down 32%) This was a top pick to buy some time after the show. It did quite well after the weakness he was looking for in order to buy. They are a Canadian driller.

BUY WEAKNESS
BUY WEAKNESS
November 9, 2017

Mostly in Canada, but trading significantly below $4, so it is a tax loss situation. It is cheap here. It is smaller cap than the others.

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Mostly in Canada, but trading significantly below $4, so it is a tax loss situation. It is cheap here. It is smaller cap than the others.

WATCH
WATCH
September 18, 2017

It is a very cheap driller. $5.53 book value at the end of last year. They are in a break even situation. He sees it doing much better. He likes the stock and covers it. There will be a great opportunity to buy it likely later in the year.

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It is a very cheap driller. $5.53 book value at the end of last year. They are in a break even situation. He sees it doing much better. He likes the stock and covers it. There will be a great opportunity to buy it likely later in the year.

TOP PICK
TOP PICK
July 28, 2017

This is a driller. 51 rigs in Canada and 5 in the US. They also have 66 service rigs. A lot of ownership by management. This could potentially be a double-digit stock. If you are able to buy this at $1.40 or less, it is going to be a great one for the next cycle. (Analysts’ price target is $2.50.)

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This is a driller. 51 rigs in Canada and 5 in the US. They also have 66 service rigs. A lot of ownership by management. This could potentially be a double-digit stock. If you are able to buy this at $1.40 or less, it is going to be a great one for the next cycle. (Analysts’ price target is $2.50.)

TOP PICK
TOP PICK
June 12, 2017

They did $18.6 million EBITDA in the 1st quarter. They’re involved in contract drilling in Canada and the US, with 51 rigs in Canada and 5 in the US. They have 66 well servicing rigs. Under $2, this is a Buy, but under $1.90, it is a table pounding buy. He has a one-year target of $4.80. (Analysts’ price target is $3.50.)

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They did $18.6 million EBITDA in the 1st quarter. They’re involved in contract drilling in Canada and the US, with 51 rigs in Canada and 5 in the US. They have 66 well servicing rigs. Under $2, this is a Buy, but under $1.90, it is a table pounding buy. He has a one-year target of $4.80. (Analysts’ price target is $3.50.)

PAST TOP PICK
PAST TOP PICK
April 7, 2016

(Top Pick Apr 6/15, Down 64.70%) Same as TDG-T. There won’t be any margin expansion going forward.

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(Top Pick Apr 6/15, Down 64.70%) Same as TDG-T. There won’t be any margin expansion going forward.

COMMENT
COMMENT
November 20, 2015

Typically service companies offer more upside than producers. If he is correct in his oil call of $55-$60, that will increase field activity because a lot of plays will work. He doesn’t see much upside above $60 in the next 1-2 years. In that environment there is still ample capacity in tier 1 drilling rigs, but companies will not have near the same pricing power as they would have coming out of a regular cycle. He is tempted on the valuation of this company, but it is not quite there for him. Liquidity can be a real issue on this one. The dividend is at risk of being cut if oil is anywhere remotely close to where we are now.

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Typically service companies offer more upside than producers. If he is correct in his oil call of $55-$60, that will increase field activity because a lot of plays will work. He doesn’t see much upside above $60 in the next 1-2 years. In that environment there is still ample capacity in tier 1 drilling rigs, but companies will not have near the same pricing power as they would have coming out of a regular cycle. He is tempted on the valuation of this company, but it is not quite there for him. Liquidity can be a real issue on this one. The dividend is at risk of being cut if oil is anywhere remotely close to where we are now.

TOP PICK
TOP PICK
April 6, 2015

You want to buy the higher quality rigs. The crummiest rigs will probably not come back into service for a couple of years. The service sector does better as you come off a bottom and the best of those are the land drillers. These stocks do well several months ahead of the sector in general. 4.34% dividend.

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You want to buy the higher quality rigs. The crummiest rigs will probably not come back into service for a couple of years. The service sector does better as you come off a bottom and the best of those are the land drillers. These stocks do well several months ahead of the sector in general. 4.34% dividend.

COMMENT
COMMENT
March 11, 2015

He has his eye on a number of other energy service providers. This one is sort of in the middle of the pack for him. He is waiting for prices to stabilize before moving back into this area.

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He has his eye on a number of other energy service providers. This one is sort of in the middle of the pack for him. He is waiting for prices to stabilize before moving back into this area.

BUY
BUY
February 5, 2015

He has become fonder of this one over the last year. The drilling service business is in an abyss, but the market has already priced this in. It will find a new trading range between $6-$7.

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He has become fonder of this one over the last year. The drilling service business is in an abyss, but the market has already priced this in. It will find a new trading range between $6-$7.

WAIT
WAIT
January 6, 2015

In the drilling business with one of the better management teams and a pretty new drill fleet. If you are going to own any drillers in the Canadian space, this is one of the top 3 that you want to own. However, with the drop in oil and gas prices, it is difficult for them and you are looking at a few months of weakness. If you are not in a hurry, you can wait to accumulate. Thinks the dividend is sustainable.

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In the drilling business with one of the better management teams and a pretty new drill fleet. If you are going to own any drillers in the Canadian space, this is one of the top 3 that you want to own. However, with the drop in oil and gas prices, it is difficult for them and you are looking at a few months of weakness. If you are not in a hurry, you can wait to accumulate. Thinks the dividend is sustainable.

Showing 1 to 15 of 29 entries

Western Energy Services(WRG-T) Rating

Ranking : 1 out of 5

Bullish - Buy Signals / Votes : 0

Neutral - Hold Signals / Votes : 0

Bearish - Sell Signals / Votes : 0

Total Signals / Votes : 0

Stockchase rating for Western Energy Services is calculated according to the stock experts' signals. A high score means experts mostly recommend to buy the stock while a low score means experts mostly recommend to sell the stock.

Western Energy Services(WRG-T) Frequently Asked Questions

What is Western Energy Services stock symbol?

Western Energy Services is a Canadian stock, trading under the symbol WRG-T on the Toronto Stock Exchange (WRG-CT). It is usually referred to as TSX:WRG or WRG-T

Is Western Energy Services a buy or a sell?

In the last year, there was no coverage of Western Energy Services published on Stockchase.

Is Western Energy Services a good investment or a top pick?

Western Energy Services was recommended as a Top Pick by Josef Schachter on 2018-10-09. Read the latest stock experts ratings for Western Energy Services.

Why is Western Energy Services stock dropping?

Earnings reports or recent company news can cause the stock price to drop. Read stock experts’ recommendations for help on deciding if you should buy, sell or hold the stock.

Is Western Energy Services worth watching?

0 stock analysts on Stockchase covered Western Energy Services In the last year. It is a trending stock that is worth watching.

What is Western Energy Services stock price?

On 2020-10-29, Western Energy Services (WRG-T) stock closed at a price of $0.26.