Ubika Research has shortlisted ten energy stocks which have incurred high
capital expenditure during the past twelve months and are estimated to
increase their CaPex during 2014. Moreover, these companies have registered
strong CaPex Ratio (TTM Cash Flow/ TTM Capital Expenditure) during the
trailing twelve months period and are currently trading at relatively low
EV to EBITDA multiple. Additionally, we note that majority of the shortlisted
stocks have recorded significant price gains with daily average trading
volume in excess of 100,000 shares over the past three months.
|
Company Name |
Ticker |
Exchange |
Market Cap |
Last Price |
Average Volume |
Price Change |
EV to EBITDA |
TTM CaPex |
CaPex Ratio* |
CaPex Growth |
|
Canyon Services Group Inc |
FRC |
TSX |
722.9 |
11.56 |
319,082 |
1.0% |
19.6 |
12.8 |
3.9 |
77.3% |
|
Alon USA Energy Inc |
ALJ |
NYSE |
1,085.9 |
15.82 |
781,721 |
32.2% |
3.4 |
76.8 |
3.9 |
49.4% |
|
Green Plains Renewable Energy Inc |
GPRE |
NASDAQ |
673.5 |
22.10 |
845,620 |
42.1% |
6.2 |
15.5 |
8.3 |
40.0% |
|
Flotek Industries Inc |
FTK |
NYSE |
1,031.9 |
19.98 |
562,666 |
-8.9% |
19.1 |
15.4 |
1.3 |
34.6% |
|
Matrix Service Co |
MTRX |
NASDAQ |
725.3 |
27.69 |
136,957 |
28.8% |
8.1 |
25.6 |
2.8 |
31.1% |
|
Parkland Fuel Corp |
PKI |
TSX |
1,277.5 |
17.86 |
393,662 |
-5.9% |
7.7 |
42.0 |
1.6 |
22.7% |
|
Freehold Royalties Ltd |
FRU |
TSX |
1,516.9 |
22.50 |
168,849 |
-7.4% |
11.7 |
31.7 |
2.2 |
13.6% |
|
Dril-Quip Inc |
DRQ |
NYSE |
4,407.1 |
108.30 |
304,761 |
-6.2% |
18.6 |
40.3 |
2.5 |
13.5% |
|
MRC Global Inc |
MRC |
NYSE |
3,089.2 |
30.36 |
1,137,094 |
4.8% |
8.7 |
20.3 |
21.7 |
8.8% |
|
Mullen Group Ltd |
MTL |
TSX |
2,625.7 |
28.98 |
251,608 |
12.5% |
8.8 |
125.4 |
0.9 |
2.7% |
Source: Bloomberg; TTM: Trailing Twelve Months
CAPEX ratio: TTM Free cash Flow/TTM CAPEX
Market cap, Last Price and Capex are in their respective currencies
Company Description:
Canyon Services Group Inc (TSX: FRC)
Canyon Services Group, Inc. offers oil field services. The company offers
fracturing and chemical stimulation services to enhance oil and natural
gas production.
Alon USA Energy Inc (NYSE: ALJ)
Alon USA Energy, Inc. refines and markets oil, operates pipelines, and
operates convenience stores. The company operates a sour crude oil refinery
and pipeline, markets gasoline and diesel fuel to retailers, markets unbranded
gasoline and diesel and jet fuels, supplies asphalt in West Texas, New
Mexico and Arizona, and operates convenience stores in West Texas and New
Mexico.
Green Plains Renewable Energy Inc (NASDAQ: GPRE)
Green Plains Renewable Energy, Inc. owns and operates ethanol plants located
in the Midwest U.S. The company also markets and distributes fuel grade
ethanol, livestock feed and industrial grade corn oil. Green Plains provides
grain handling, storage and complementary agronomy services to local grain
producers through grain elevators located in Iowa, Missouri, Nebraska and
Tennessee.
Flotek Industries Inc (NYSE: FTK)
Flotek Industries, Inc. manufactures and markets down-hole equipment and
specialty chemicals. The company also engineers, designs, and constructs
equipment for cementing and stimulation. Flotek serves major and independent
companies in the international oilfield service industry.
Matrix Service Co (NASDAQ: MTRX)
Matrix Service Company provides specialized on-site maintenance and construction
services for petroleum refining and storage facilities, as well as water
storage facilities for the private industry sector. The company’s services
include the maintenance, inspection, design, repair, and construction of
aboveground storage tanks.
Parkland Fuel Corp (TSX: PKI)
Parkland Fuel Corporation is an independent marketer and distributor of
fuels and lubricants with branches across Canada. The company manages a
nationwide network of sales for retail, commercial, wholesale, and home
heating fuel customers.
Freehold Royalties Ltd (TSX: FRU)
Freehold Royalties Ltd. produces oil, natural gas, natural gas liquids
and potash. The company operates in western Canada and Ontario.
Dril-Quip Inc (NYSE: DRQ)
Dril-Quip, Inc. designs and manufactures offshore drilling and production
equipment. The company’s equipment consists of subsea, surface, and offshore
rig equipment for use by oil and gas companies in offshore areas throughout
the world. Dril-Quip provides installation and reconditioning services,
and also rents running tools.
MRC Global Inc (NYSE: MRC)
MRC Global Inc. distributes pipe, valves, and fittings. The company serves
the chemical and petrochemical; food processing; gas distribution; gas
transmission; oil and gas exploration and production; pharmaceutical; pulp
and paper; refining; steel manufacturing; and power generation industries.
Mullen Group Ltd (TSX: MTL)
Mullen Group Limited owns asset based oilfield services and trucking businesses.
The company’s oilfield services division provides specialized transportation
equipment and trained operating personnel to the oil and gas industry in
western Canada. Mullen’s trucking division provides bulk hauling,
truckload, and other services to shippers in Canada and the United States.
