Brian Grosso
Deep value

A Thinly-Traded Cyclical Turnaround With Further Upside

North American Energy Partners (NYSE:NOA) is a thinly-traded small-cap with a relatively new CEO leading a clear turnaround. I see significant financial opportunity for the company in the next few years as profits benefit from cyclicality and a lower cost structure.


NOA is a Canadian mining and heavy construction services contractor operating primarily in the Alberta oil sands region. Poor oil prices and in turn low client capital spending have led to disappointing financial results and under-utilization of NOA's equipment fleet these past few years. Lackluster, inconsistent FCF performance is evident and has resulted in mounting leverage that at one point threatened the life of the company.

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In May of last year, Martin Ferron...

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