Topic: How To Invest

Pat: Could I have your recommendation on Canyon Services Group? Thank you.

Article Excerpt

Canyon Services Group, $12.82, symbol FRC on Toronto (Shares outstanding: 61.0 million; Market cap: $782.0 million; www.canyontech.ca), provides specialized oil and gas fracturing and well services. Hydraulic fracturing, or fracking, involves pumping water and chemicals into rock formations that contain oil or natural gas. This fractures the rock and releases the oil and gas. The company operates exclusively in Canada, and has some of the most modern equipment in the industry. In the three months ended December 31, 2011, Canyon’s revenue jumped 70.2%, to $145.0 million from $85.2 million a year earlier. Earnings rose 66.3%, to $40.9 million, or $0.67 a share, from $24.6 million, or $0.41 a share. The company saw continued strong demand for its services in the quarter. It also took on larger jobs that required deeper drilling. Demand for fracturing services is continuing to rise, particularly in fast-growing regions like the Bakken area of Saskatchewan. Canyon raised its quarterly dividend to $0.0625 a share from $0.025 with the January 2012…