Essential Energy Services

Essential Energy Services

ESN

Last Updated On: October 12, 2018

Share Price On This Date: $0.475

An oil and gas services company, operating Canada's largest fleet of coiled tubing drilling rigs.

Summary

After getting pummeled along with the rest of the oil and gas sector, Essential has been clawing its way back to profitability although at the moment, they are still hovering just shy of that mark.  They trade significantly below book value and at a price of only 2 times their earnings before the big oil bust. My hope is that earnings will recover as the sector slowly regains its feet, dragging the stock price along for the ride. However, their operations are concentrated in Canada and with the steep discount that Canadian crude trades at compared to American oil, the future for the sector is not looking terribly bright. Is this the dark before the dawn or will the oil industry in Canada remain a shadow of its former self?

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