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Opinions Jason Mann
Trican Well Service Ltd.TCW.TOCOMMENTJun 03, 2016
Jason MannStock price when the opinion was issued
As of Jun 19, 2026. Market Open.
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Outlook quite strong in terms of well servicing, you can go back in and re-frack to improve productivity. Nice, strong upward bias to fracking services and intensity of services. Nice yield.
Dennis da Silva
TCW has an impressive shareholder yield, with a dividend yield of 1.7%, a buyback yield of 10.8%, and a debt paydown yield of 3.4%. The company is a $971M company with a forward earnings multiple of 8.1X, a low debt profile, growing margins, and great free cash flows, but it does operate in a cyclical industry. Although the company's balance sheet has shrunk since 2018, its share count has also diminished significantly since that timeframe. If an investor has an optimistic outlook on the price of oil and the energy market, we would feel comfortable with the solid execution and fundamentals of this company.
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His theme today is leverage, nice yield, and ability to grow cash. No debt. Trades at 2.5x EBITDA multiple, down from its historic 5x. Services are picking up. Advantaged on the gas side, purest publicly listed frack play in Canada. First Nations issues resolved. LNG Canada could mean a 10% rig pickup. Ultra-clean balance sheet. Nice yield of 1.25%.
(Analysts’ price target is $5.53)Dennis da Silva
Jamie Murray 
Eric Nuttall
Josef Schachter
Teal Linde
From a valuation perspective, looking at their current ability to generate cash flow, it is not great. It is over levered. When the oil patch slows down, service companies almost go to zero. However, this is one of those stocks that is really cheap on its core replacement value, so Price to Book trades at just a partial multiple of its replacement value. They’ve been doing all the right things in terms of giving themselves survivability. Just did an equity deal. Have a handful of supportive long term shareholders, who keep selling assets, which they seem to be balancing reasonably well, giving themselves another chance at the next cycle. Wilkes Brothers now owns 18% of the company, and there is always a chance they may take in the rest of the shares.