Tuesday, September 30, 2014

How to Snap Up Growing Energy Services Companies

The Energy Report: Are oil and gas field services in Canada a high growth sector?

Russell Stanley: Energy prices drive oil and gas field construction and infrastructure development in western Canada. Other drivers include the need to build out liquefied natural gas (LNG) facilities and rail facilities.
Jennings Capital targets service companies with market caps in the $50 to $200 million ($50–200M) range. These names tend to have fewer analysts following than do the larger names. We like companies that rent out niche-type equipment at high margins. These firms are typically low headcount businesses with a lot of operating leverage. Oil and gas field demand is so strong that these companies must source equipment externally to extend their fleets and meet commitments. (more)

Please share this article

No comments:

Post a Comment