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Opinions Eric Nuttall
Trican Well Service Ltd.TCW.TOPAST TOP PICKApr 17, 2018
Stock 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
(A Top Pick June 19, 2017. Down 16%). The entire pressure-pumping sector, including Trican, is completely undervalued. This company trades at 3x next year’s EBITDA. Mid-cycle valuations are closer to 4 or 4.5. The company has been spitting out high free cash flow, which has let them do $54 million in buybacks. When Shell makes its positive decision on an LNG terminal, which he expects this year, it will be very positive for Trican. He projects their free cash flow yield next year at 20%. He sold his position even though he likes the stock because he thinks that US pumpers are even more cheap than Trican. He can buy the US peers nearer 2.2 times EBITDA, compared to Trican’s 3x and they generate even better cash flow.