Hey guys you must check out HWO - High Artic Energy Services. SHOULD BE TRADING ATLEAST TRUPLE ITS VALUE RIGHT KNOW!! HWO - Focus is to provide drilling and specialized well completion services, equipment rentals and other services to the oil and gas industry. High Arctic is a market leader providing drilling and specialized well completion services and supplies rig matting, camps and drilling support equipment on a rental basis in Papua New Guinea. The Canadian and US operation provides well servicing, well abandonment, snubbing and nitrogen services and equipment on a rental basis to a large number of oil and natural gas exploration and production companies operating in Western Canada and the United States. RIGHT NOW THE CURRENTLY HAVE A 35% DIVIDEND (SUSPENDED AF THE MOMENT BUT WILL BE BACK MINUS WELL TAKE ADVANTAGE OF THESE PRICES) 0 Debt - over 20 million cash on hand
I picked up a bunch of this stock in 2009 for almost nothing and held it until early 2014, shortly after Bruce Thiessen retired. When I bought it, it was a very well run company that was free of debt. Early in the company history, they had debt that almost killed them during an oil price crash. The CEO became debt adverse and steered the company to be completely free of debt. I was confident of their ability to withstand anything, based on the CEO's past performance. The PNG work was acquired during a time when oil field services weren't much needed in Western Canada. They got some containers, built a NG service rig into them, and off they went. When Bruce Thiessen retired, I was confident a new CEO would be appointed who would immediately start the task of building up debt and that's exactly how it went. Every once in a while, I come across a man who is amazing. Bruce Thiessen was such a man at the helm of High Arctic Energy. I followed the company for a while but lost interest when they started accumulating debt. That's when I stopped following them. It's a nice throw back to see someone mention them again. It's too bad they are carrying so much debt, at this point.
I will look for an updated one. Even on this one they have 8 million more cash than debt but debt was suppose to be paid off. Just the gap fill alone makes it a triple banger can easily see 1.8 before year end
August.14 after hours will include Press release and then Financial Statements and Management’s Discussion and Analysis will be released to SEDAR shortly thereafter, here is the verbiage from the press release on our website
The following highlights the Corporation’s results for Q2-2020 and YTD-2020: Focus on working capital management to preserve our cash balances and maintain a strong balance sheet during the current global coronavirus (“COVID-19”) crisis has positioned High Arctic to be ready once restrictions loosen through the following: Increased net cash balance by $5.2 million. Strong working capital position of $49.7 million at June 30, 2020, and Unused bank credit facility of $35.0 million. Revenue of $16.1 million and $55.7 million for the three and six months ended June 30, 2020 (2019 - $46.6 million and $93.1 million, respectively) and adjusted EBITDA of $1.2 million and $3.9 million (2019 - $4.0 million and $9.5 million) for the Quarter and YTD, respectively. On a year to date basis as compared to 2019, capital expenditures and business acquisition expenditures have been reduced by $12.0 million, dividends have been reduced by $3.4 million and cost reduction and control measures have been implemented throughout the organization. Year to date oilfield services expenses have been reduced by $31.7 million as compared to 2019. After the inclusion of $0.9 million in YTD-2020 restructuring costs, as well as $0.6 million in bad debt provision, general and administrative expenses have decreased by $0.1 million. Service delivery to our customers with safety of personnel and quality of service top of mind during this COVID-19 crisis, lifted the Canadian market share of Concord Well Servicing to 26% in Q2-2020. Benefits from the Canadian Emergency Wage Subsidy (“CEWS”) were obtained, which provided $2.1 million toward wages of Canadian workers and was utilized to retain a capable workforce to service current and prospective customers now, and when restrictions loosen and markets improve.
Thanks, Copperrunner. I appreciate the update. I got out of HWO because the CEO I knew was retiring. After that, it was like a new company to me and needed research, etc. I will definitely follow it. I still like the oil field services sector.
