Drilling Into The Oilfield Services Companies To Find Long And Short Candidates (Part I) [View article]
shourey, please add also the followings about Tuscany International Drilling:
- TID's CEO is a Veteran of the drilling sector and he has created and sold 3 drilling companies in the past.
- TID operates in Africa and South America where the demand exceeds the supply. These markets have nothing to do with the mature/saturated North American market.
- The energy companies in Africa and South America receive premium BRENT pricing which spurs them to drill.
- High Insiders ownership (~20% currently). The French Maurel and Prom owns 30%, and it has recorded at its books its investment in TID with TID's book value. That happened because M&P was paid with shares as part of the deal when TID acquired Maurel and Prom's African drilling subsidiary. TID has a book value ~$1.10.
This means that ~50% of TID belongs to strong hands.
The insiders have also bought even at 48 cents, according to canadianinsider.com
Drilling Into The Oilfield Services Companies To Find Long And Short Candidates (Part I) [View article]
I ll do shourey. Apart from shorting BAS, I am only adding TID.TO (Tuscany International Drilling) currently. TID from the main Toronto board is my only bullish bet from the oilfield sector currently. Here is why:
- TID's utilization rate has jumped from 65% in Q1 2013 to 82% in Q2 2013. The company found customers for 2 out of the 3 non-working rigs in Colombia, and for its 1 idled rig in Tanzania. These 3 rigs started to work in Q2 2013, bringing the total working rigs currently at 31 out of 37.
- More news will come soon from Brazil too, and the company is optimistic that at least 1 high margin heli-portable rig will start working in Q3 2013 according to its annual report for 2012. I quote:
"Prospects for two additional rigs to be under contract by the beginning of Q4 remain very strong, including the opportunity of at least one of our Brazilian Heli rigs".
- After all, the key metrics for TID as below, prove its gross undervaluation at 17 cents:
Investors Versus Traders: A Battle For Oil And Gas Profits [View article]
The problem with YO.V is that it does not play alone in the Duvernay field. This is the big picture.
There are ~25 companies that have significant Duvernay exposure. Actually their Duvernay acreage is bigger than YO.V Duvernay acreage. Just to set things straight.....
Another problem with YO is that YO can not move forward and drill Duvernay alone because these wells are very expensive wells while YO has very small CF.
After all, it is highly speculative for an investor to buy YO NOW and hope for a quick buyout....He will most likely wait for a long long time.....The Duvernay list with the potential brides is very big.
The Cold, Hard Facts Behind Funding Your Retirement [View article]
Dennis, good article. I see you talk about gold. My choice among all the gold stocks is Nevsun (NSU). I rejected ABX, GFI, AU, NG that Paulson bought for his portfolio, for the reasons mentioned below.
NSU raised the dividend 40% few days ago. This is rare in the gold sector these days.
I also like EGO for the reasons mentioned below, but I have not initiated a long position yet.
Is This Oil-Weighted Energy Producer Overvalued After The Recent Price Surge? [View article]
TOT,
This is very interesting. Thank you. CS acknowledges that HRT's clueless actions, by breaching the terms of two contracts, drove TID's pps down and impacted negatively TID's results in H2 2012.
It is also very interesting that CS estimates that HRT will pay TID ~$25 million.
These were two long term (4 years) contracts with the high margin heli-portable rigs of TID. This is why, a compensation of $35-40 million will not surprise me either.
Is This Oil-Weighted Energy Producer Overvalued After The Recent Price Surge? [View article]
govols,
The utilization rate is getting better and it is ~81% - 82% currently. You can call the company to confirm it. It was 65% in Q1 2013.
The price can hit $1 or higher especially if TID is bought out. TID initiated a strategic review few weeks ago.
TID has a unique strategic advantage that MOST oilfield services companies desire to have....it has access to some key international markets where the drilling demand exceeds the supply....this is the case both for Africa and South America where TID operates.
The Utica Shale Does Not Seem To Be The Ace Up This Producer's Sleeve [View article]
To me, the proved reserves column is necessary too. A potential investor gets a full picture of the company's valuation.
Regards,
VD
The Utica Shale Does Not Seem To Be The Ace Up This Producer's Sleeve [View article]
Drilling Into The Oilfield Services Companies To Find Long And Short Candidates (Part I) [View article]
Drilling Into The Oilfield Services Companies To Find Long And Short Candidates (Part I) [View article]
- TID's CEO is a Veteran of the drilling sector and he has created and sold 3 drilling companies in the past.
- TID operates in Africa and South America where the demand exceeds the supply. These markets have nothing to do with the mature/saturated North American market.
- The energy companies in Africa and South America receive premium BRENT pricing which spurs them to drill.
- High Insiders ownership (~20% currently). The French Maurel and Prom owns 30%, and it has recorded at its books its investment in TID with TID's book value. That happened because M&P was paid with shares as part of the deal when TID acquired Maurel and Prom's African drilling subsidiary. TID has a book value ~$1.10.
This means that ~50% of TID belongs to strong hands.
The insiders have also bought even at 48 cents, according to canadianinsider.com
Regards,
VD
Drilling Into The Oilfield Services Companies To Find Long And Short Candidates (Part I) [View article]
- TID's utilization rate has jumped from 65% in Q1 2013 to 82% in Q2 2013. The company found customers for 2 out of the 3 non-working rigs in Colombia, and for its 1 idled rig in Tanzania. These 3 rigs started to work in Q2 2013, bringing the total working rigs currently at 31 out of 37.
- More news will come soon from Brazil too, and the company is optimistic that at least 1 high margin heli-portable rig will start working in Q3 2013 according to its annual report for 2012. I quote:
"Prospects for two additional rigs to be under contract by the beginning of Q4 remain very strong, including the opportunity of at least one of our Brazilian Heli rigs".
- After all, the key metrics for TID as below, prove its gross undervaluation at 17 cents:
PBV = 0.16
Operating Income Margin (%) = 7%
EBITDA Margin (%) = 16%
LT Debt / Equity = 0.61
LT Debt / EBITDA* = 3
EV / EBITDA* = 3.76
Regards,
VD
New Entrants In The Midstream Sector That Deserve A Closer Look (Part II) [View article]
Regards,
VD
Is This Oil-Weighted Energy Producer Overvalued After The Recent Price Surge? [View article]
I would buy TID even at 25-30 cents if I had cash. The market has not realized yet what is going on with TID.
DOW does not impact such small companies.
Regards,
VD
Is This Oil-Weighted Energy Producer Overvalued After The Recent Price Surge? [View article]
Investors Versus Traders: A Battle For Oil And Gas Profits [View article]
There are ~25 companies that have significant Duvernay exposure. Actually their Duvernay acreage is bigger than YO.V Duvernay acreage. Just to set things straight.....
Another problem with YO is that YO can not move forward and drill Duvernay alone because these wells are very expensive wells while YO has very small CF.
After all, it is highly speculative for an investor to buy YO NOW and hope for a quick buyout....He will most likely wait for a long long time.....The Duvernay list with the potential brides is very big.
Regards,
VD
The Cold, Hard Facts Behind Funding Your Retirement [View article]
NSU raised the dividend 40% few days ago. This is rare in the gold sector these days.
I also like EGO for the reasons mentioned below, but I have not initiated a long position yet.
http://seekingalpha.co...
http://seekingalpha.co...
Regards,
VD
Is This Oil-Weighted Energy Producer Overvalued After The Recent Price Surge? [View article]
Truth is that patience rewards.....It is a pity you bailed on Surge...
Yes, TID can redeploy these rigs and there is at least one customer for them according to Q1 2013 report.
Regards,
VD
Is This Oil-Weighted Energy Producer Overvalued After The Recent Price Surge? [View article]
Regards,
VD
Is This Oil-Weighted Energy Producer Overvalued After The Recent Price Surge? [View article]
I believe Surge will release immediately any info associated with this issue. We will see.
Regards,
VD
Is This Oil-Weighted Energy Producer Overvalued After The Recent Price Surge? [View article]
This is very interesting. Thank you. CS acknowledges that HRT's clueless actions, by breaching the terms of two contracts, drove TID's pps down and impacted negatively TID's results in H2 2012.
It is also very interesting that CS estimates that HRT will pay TID ~$25 million.
These were two long term (4 years) contracts with the high margin heli-portable rigs of TID. This is why, a compensation of $35-40 million will not surprise me either.
Regards,
VD
Is This Oil-Weighted Energy Producer Overvalued After The Recent Price Surge? [View article]
The utilization rate is getting better and it is ~81% - 82% currently. You can call the company to confirm it. It was 65% in Q1 2013.
The price can hit $1 or higher especially if TID is bought out. TID initiated a strategic review few weeks ago.
TID has a unique strategic advantage that MOST oilfield services companies desire to have....it has access to some key international markets where the drilling demand exceeds the supply....this is the case both for Africa and South America where TID operates.
Regards,
VD