Topic: How To Invest

Hi Pat: What are your recommendations on Secure Energy Services? Thank you.

Article Excerpt

Secure Energy Services, $13.69, symbol SES on Toronto (Shares outstanding: 108.5 million; Market cap: $1.5 billion; www.secure-energy.ca), provides services to oil and natural gas companies in Western Canada and the U.S., including handling, processing and selling crude oil, supplying drilling fluids and providing recycling services. In the three months ended March 31, 2013, Secure Energy earned $17.8 million, up 18.2% from $15.0 million a year earlier. Earnings per share were unchanged at $0.17, as Secure issued more shares to pay for acquisitions. Revenue rose 27.5%, to $147.1 million from $115.4 million, mostly due to contributions from recently purchased companies. The company pays a monthly dividend of $0.0125 a share. The stock yields 1.1%. In April 2013, Secure paid $23.1 million for Frontline Integrated Services, which inspects pipelines, provides excavation, repair, replacement and rehabilitation services, conducts well-site remediation and reclamation and demolishes and decommissions well sites. In addition, Secure has just agreed to buy Target Rentals for $39.8 million. Target is a privately owned oilfield…