CES Energy Solutions Corp. (ticker: CEU)—formerly Canadian Energy Services—provides oilfield services ranging from drilling fluids to laboratory service, through every step in the life of a producing well. The company has a presence throughout North America and most major oil plays.
The majority of CES’s operations occur within the United States, with the booming Permian basin claiming 15% of its market share alone.
During Q1, 2017, CES reported $252.4 million in revenues—significantly higher than Q1, 2016 during which CES brought in $137.1 million. CES asserts that the improvement in revenue is reflective of the improvement in commodity prices—and by extension the acceleration of operating companies to utilize CES’ services as they ramp drilling and completions.
Horizontals, new fracs creating demand
The company said that, though prices and activity have improved, the volume of activity is the factor most responsible for its revenue growth. With the advent of extended horizontal wells and higher intensity fracturing, CES believes it is in a good position to take advantage of burgeoning demand for larger amounts of drilling fluid, more intensively designed drilling fluids and chemicals, and frac-inputs.
Source: CES Energy Solutions
Diversity in services
CES has divided its functions between multiple subsidiaries that specialize in different segments of the service industry. CES itself and AES Drilling Fluids specialize in designing and customizing drilling fluid to meet operator specifications. The company’s StimWrx subsidiary—located in Western Canada—services oil, gas, and injection wells via matrix stimulation.
In the Superior Weighting subsidiary specializes in designing chemical and mineral inputs—such as barite—to drilling and control fluids. The remaining subsidiaries, JACAM Chemicals, Catalyst Oilfield Services, and PureChem Services all manufacture specialty oilfield chemicals.
Clear Environmental Solutions is CES’s environmental subsidiary and provides environmental consulting, water management services, and drilling fluids waste disposal services.
CES’s EQUAL Transport subsidiary supports oil and gas operators by providing specialty transportation equipment, such as trucks and trailers, for off-highway oil and gas use.
CES Energy Solutions is presenting at EnerCom’s The Oil & Gas Conference® 22
CES will be a presenting company at the upcoming EnerCom conference in Denver, Colorado—The Oil & Gas Conference® 22.
The conference is EnerCom’s 22nd Denver-based oil and gas focused investor conference, bringing together publicly traded E&Ps and oilfield service and technology companies with institutional investors. The conference will be at the Denver Downtown Westin Hotel, August 13-17, 2017. To register for The Oil & Gas Conference® 22 please visit the conference website.
