Related posts

Most Anticipated Earnings: BLDP-T, BOS-T and more Canadian Companies Reporting Earnings this Week (May 06-10)Most Anticipated Earnings: SLF-T, REAL-T and more Canadian Companies Reporting Earnings this Week (Nov 13-17)This week’s new 52-week highs and lows … (Jan 23-29)
Investor Insights

This summary was created by AI, based on 4 opinions in the last 12 months.

Source Energy Services Ltd is a top provider of frack sand in Western Canada, with a strong focus on paying down debt. The company has seen significant increases in contract prices and profits, with the potential for continued growth in the coming years. While the stock is highly volatile and may be a risky investment, it could be a good buy for those bullish on energy, especially given its dominant market share and strong financial position.


This is a Panic-proof Portfolio opinion which is available only for Premium members

Curated by Michael O'Reilly since 2020.
1550+ opinions with 4.81 rating (one of the best performing expert).

Stockchase Research Editor: Michael O'Reilly

The Calgary based frac sand supplier recently reported 98% utilization in its trucking fleet -- an increase from 89% from a year ago.  Its rail facility in NE BC has achieved unit train size capacity, which will add further revenues.  We like that it trades at 4x earnings and under book value.  We recommend setting a stop-loss at $8.50, looking to achieve $14.00 -- upside potential of 27%. Yield 0%

(Analysts’ price target is $17.00)
(A Top Pick Jul 04/23, Up 140%)

It is one of the largest providers of frack sand in Western Canada and the prices of the contracts have increased. Its priority is to pay down debt. There are lots of catalysts and at expected $4 per share earnings next year, it is still trading at a good valuation.

(A Top Pick Feb 03/23, Up 89%)

He got his double and is still looking for a triple. It is buying back debt. Not well known with an 80 million market cap. It continues to operate very well and is the largest frac service in Western Canada. With LNG coming on this year, it should help.


Highly volatile stock.
Good to buy when out of favor.
Service style business is the first to be cut when energy prices fall.
Good if bullish on energy(risky).
Better names for investors (Trican/Precision).


Dominant in frac sand supply/distribution with over 50% market share in Canada. Profits are spiking this year because they renewed contracts earlier this year at much higher prices. Also, they have a lot of cash flow so are paying off debt. Should $500 million revenue this year, $100 million EBITDA and $40-50 million of free cash. Trades at 2x earnings. At $8-10 by end of 2024 as long as oil stays above $70.

(Analysts’ price target is $8.25)


Small oilfield services company.
Large supplier of frac sand to energy business.
Long term contracts that have recently rolled over at higher price.
High debt levels are coming down.
Cash flow being used to increase balance sheet strength.

(A Top Pick Jan 05/18, Down 86%) He sold out of this when it became apparent oil prices were not going to finish above $70 per barrel by year end. He sold out around $6.50. Demand for frac-sand is down and their is greater competition in the US. Spending plans have declined in Canada as well. He is not holding this right now.
(A Top Pick Nov 15/17, Down 85%) He sold it at about $6.50. The call was on frac sand at the time. As pricing for sand has deteriorated, it has an effect on their margins. The outlook is not awesome on this name.

(A Top Pick January 5/18 Down 68%) He sold out of this around $8-$9 per share. The frac sector has been devastated and he admits this was a bad call, although he thought Canada would be insulted from the crash. A badly timed acquisition further hurt the position – he has lost confidence with management.


(A Top Pick November 15/17 Down 54%) He was disappointed with this company did an acquisition, which eliminated the free cash flow position. He would prefer other names today.


(A Top Pick Nov 15/17, Down 47%) Management was a little optimistic when they did their financing and last acquisition. None of the forecasts were close to the mark from 9 months ago.


This is a Canadian fracking sand company. He believes it’s a name that will be stuck in the penalty box for a while. They set expectations too high when they came to market, and then suffered from rail congestion and severe weather. There’s probably no good news coming until the Fall. There will probably be another couple of poor quarters.


Dominates about 60% of Canadian frac sand. Despite the concern on ECO which is creating opportunity on Canadian services, a specialist put out an estimate on frac sand demand growing from 6 million tons last year, to about 8 million tons this year and 10 million tons next year. This company is 60% of the market, and because demand is growing so strongly they are increasing pricing. Thinks margins will hit $50 relatively soon. Trades at a 20% discount to its US peers. (Analysts' price target is $14.)


A provider of sand, but thinks of them more as a logistics company. That’s their competitive edge. Very strong barriers to entry. They are fully integrated from the mine right to the well site. Looking at the frac sand dynamics in Canada, Canadian companies are lower down in the learning curve in their adoption of using more and more sand on a per well basis. The dynamic for sand, where you have got our sand market probably growing by 50% a year, this company has 60% market in Canada. (Analysts’ price target is $14.)


The primary long way to get exposure in the Canadian frac market of larger companies. He likes management. They are a transportation advantage within Canada, and are roughly 40% of the Canadian frac sand market. Some of the big, big wells going on in the Permian literally use 100-200 railcars for a single well. The only hindrance is that there is still a large private equity component to it, which will act as an overhang. Any time the stock rallies, there will always be a kind of concern that there will be a secondary coming into the market.

Showing 1 to 15 of 15 entries
  • «
  • 1
  • »

Source Energy Services Ltd(SHLE-T) Rating

Ranking : 4 out of 5

Bullish - Buy Signals / Votes : 3

Neutral - Hold Signals / Votes : 0

Bearish - Sell Signals / Votes : 0

Total Signals / Votes : 3

Stockchase rating for Source Energy Services Ltd 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.

Source Energy Services Ltd(SHLE-T) Frequently Asked Questions

What is Source Energy Services Ltd stock symbol?

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

Is Source Energy Services Ltd a buy or a sell?

In the last year, 3 stock analysts published opinions about SHLE-T. 3 analysts recommended to BUY the stock. 0 analysts recommended to SELL the stock. The latest stock analyst recommendation is . Read the latest stock experts' ratings for Source Energy Services Ltd.

Is Source Energy Services Ltd a good investment or a top pick?

Source Energy Services Ltd was recommended as a Top Pick by on . Read the latest stock experts ratings for Source Energy Services Ltd.

Why is Source Energy Services Ltd 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 Source Energy Services Ltd worth watching?

3 stock analysts on Stockchase covered Source Energy Services Ltd In the last year. It is a trending stock that is worth watching.

What is Source Energy Services Ltd stock price?

On 2024-07-23, Source Energy Services Ltd (SHLE-T) stock closed at a price of $11.47.