Jason MannTrican Well Service Ltd.TCW.TOCOMMENTJun 28, 2017

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.

Cheap at 8x earnings, 3.3% dividend yield. Clean balance sheet. Has done well in the last year. Even if activity remains flat, probably going higher because of the price of oil.

Good for long term investors at 5-10 years.
Energy services a volatile sector.
Is good for risk adverse investors.
Cash balance very strong. 
Demand for drilling is high given strength in energy prices.

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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It provides energy services in Alberta as well as some in the U.S. He doesn't own energy services or exploration companies. Sticks to pipelines.This type of company does well when the sector does well.

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%.

Likes service side of the business in energy. Producers not drilling as much as in prior energy booms. Expecting increased drilling/service demand for the long term.