CA - Total Energy Services: Still A Cash Flow Monster Despite A 'Light' Q1

2024-05-13 10:30:00 ET

Summary

• Total Energy Services reported a slightly weaker Q1 result compared to last year, but still generated a substantial amount of free cash flow.
• The acquisition of Saxon Energy Services is expected to boost EBITDA and operating cash flow.
• The weak natural gas market in the US is holding the stock back, but the future looks encouraging based on the price curve of natural gas.

Introduction

Earlier this year, I argued Total Energy Services ( TOT:CA ) ( TOTZF ) was trading at a very attractive valuation . The demand for service providers in the Canadian oil industry was increasing, and this translated into a strong earnings and cash flow result for Total Energy (not to be confused with Total Energies (TOT), the French energy conglomerate). Total Energy Services has four different divisions, all focusing on the oil industry....

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