CA - Hydraulic Fracturing: A Quick Value Screen

Summary

• Exploration and production equities have already rebounded to multi-year highs. Many oil field services equities, including hydraulic fracturing equities have lagged the return of exploration and production.
• The sharp drop in EV/EBITDA in late June is amplified by increased earnings not yet reflected by price return. I think unrecognized value is likely.
• Several hydraulic fracturing equities were screened using a value matrix with promising results; three smaller-cap hydraulic fracturing equities appear undervalued.

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