- The company is among the largest owners of e-frac spreads in the USA and this technology seems likely to gain a significant share of the fracking market in the future.
- While EBITDA margins are good, depreciation and amortization expenses are high and the business is unprofitable even in good years for the oil and gas sector.
- The shareholders' equity of U.S. Well Services is negative and the company has debts of close to $300 million.
- Overall, I think the business isn't worth much in its current state and I'm bearish.
For further details see:
U.S. Well Services Looks Overvalued Based On Fundamentals