In a report released on May 2, John Gibson CFA from BMO Capital reiterated a Buy rating on Secure Energy Services (SES – Research Report), with a price target of C$18.00.
John Gibson CFA has given his Buy rating due to a combination of factors including Secure Energy Services’ strong Q1/25 financial performance and strategic initiatives. The company reported a solid adjusted EBITDA of $121 million, aligning with expectations, and demonstrated robust discretionary free cash flow. Additionally, Secure Energy Services has secured a significant 10-year contract for a produced water facility in the Montney region, which is expected to bolster future growth.
Secure Energy Services has also reaffirmed its 2025 guidance, projecting adjusted EBITDA between $510-540 million and discretionary free cash flow of $270-300 million. The company’s commitment to shareholder returns is evident through its substantial issuer bid and share repurchase activities, which are anticipated to enhance per share metrics. These strategic moves, combined with the company’s resilience against commodity price volatility, underpin the Buy rating and the maintained price target of $18.
Based on the recent corporate insider activity of 41 insiders, corporate insider sentiment is neutral on the stock.