2024-07-26 08:00:00 ET
Summary
- CES Energy Solutions Corp. has rallied on strong performance in Q4 of 2023 and Q1 of this year, with analyst coverage increasing and price targets ranging from $7.00 to $10.50.
- The company dominates the U.S. drilling fluids market, especially in the Permian Basin, and offers a combination of big company fluids technology with small company service.
- CES provides drilling fluids that enable longer lateral sections and reduce time to total depth, with a focus on high tech chemistry to lower unit costs and enhance well productivity.
- We think the current 8X multiple suggests patience in establishing new positions at current levels.
Introduction
Last fall, we recommended CES Energy Solutions Corp. ( CESDF ) in a Daily Drilling Report internal article, at $2.19 per share! The company has rallied strongly on superior performance in Q4 of 2023, and Q1 of this year. AES (the U.S. division of CES) has a big chunk of the U.S. drilling fluids market, and is especially strong in the Permian with 33% of the market. AES offers big company fluids technology with small company service. A very appealing combination, that market is clearly rewarding....
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For further details see:
CES Energy Solutions: It's The Mud