antman
11 years ago
Enterprise Group shareholders elect five-member board
2013-06-24 17:31 ET - News Release
Mr. Leonard Jaroszuk reports
ENTERPRISE GROUP INC. ANNOUNCES VOTING RESULTS OF ELECTION OF DIRECTORS
At the annual meeting of shareholders held on June 20, 2013, each of the five nominees proposed as directors and listed in Enterprise Group Inc.'s management information circular dated May 13, 2013, was elected as a director. The detailed results of the vote are set out in the attached table.
DIRECTOR NOMINEE VOTING RESULTS
Votes
Nominee Votes for % for withheld % withheld
Leonard D. Jaroszuk 20,338,929 95.80% 891,191 4.20%
John Pinsent 20,604,620 97.05% 625,500 2.95%
Fredy Ramsoondar 20,629,620 97.17% 600,500 2.83%
Desmond O'Kell 20,514,620 96.63% 715,500 3.37%
Manu K. Sekhri 20,629,620 97.17% 600,500 2.83%
Enterprise also announces that Fredy Ramsoondar has resigned as director of company, effective immediately. Enterprise would like to thank Mr. Ramsoondar for his time and efforts while serving on its board.
antman
11 years ago
Enterprise Group closes Pro Tech purchase
2013-06-20 07:36 ET - News Release
Mr. Leonard Jaroszuk reports
ENTERPRISE GROUP, INC. ANNOUNCES CLOSING OF A STRATEGIC ACQUISITION
Enterprise Group Inc. has completed its acquisition of Pro Tech Construction Inc. for a purchase price of $2.05-million. The acquisition is effective June 19, 2013, and was financed through a cash only transaction.
This acquisition is seen as a highly strategic advance for the company, as Pro Tech's main asset is 12.29 acres of land and buildings combined with a development permit that allows for future expansion. The property acquired is ideally located in West Edmonton's busy Acheson Industrial park. This area has shown unprecedented growth and in combination with lack of developed industrial land in the area, has resulted in an increased appraised value of $3.5-million since the offer to purchase was accepted.
The location will also serve as a West Edmonton field office for TC Backhoe and Directional Drilling LP and Artic Therm International. This location will assist TC and ATI to expand their operations and at the same time is ideally located to support TC's new regional contract with a major utility company which is located in the same vicinity which TC has a long-term relationship with.
This West Edmonton location will increase the TC Backhoe's productivity and overall profitability since it will reduce travel time from their existing location. The savings in wages, fuel costs and lower maintenance costs will be approximately $230,000 annually.
Leonard Jaroszuk, president and chief executive officer, says: "We are excited about the opportunity this acquisition gives us since it not only allows us to better serve our Western regional customers, but it also allows us to expand our footprint and provides us the opportunity to expand all operations in Western Alberta."
The location will also be used as a staging area for larger jobs which require additional equipment or jobs that require logistics involving two or more Enterprise companies.
We seek Safe Harbor.
antman
12 years ago
Enterprise Group closes Calgary Tunnelling purchase
2013-06-17 07:26 ET - News Release
Mr. Leonard Jaroszuk reports
ENTERPRISE GROUP, INC. ANNOUNCES CLOSING OF A SPECIALIZED UNDERGROUND INFRASTRUCTURE CONSTRUCTION COMPANY
Enterprise Group Inc. has completed its previously announced acquisition of a specialized underground infrastructure construction company, Calgary Tunnelling & Horizontal Augering Ltd., for a purchase price of $12-million plus working capital, subject to postclosing adjustment. The acquisition is effective May 1, 2013. The acquisition was funded through a combination of cash, the issuance of 727,908 common shares of the Company at a deemed price of $0.68 per share and vendor take-back financing in the amount of $1 million to be paid over two years.
Founded in 1984, Calgary Tunnelling & Horizontal Augering LTD., ("CTHA") is a North American leader in the highly specialized tunnelling field. CTHA utilizes a number of tunnelling disciplines to get the job done efficiently and safely. Some of these disciplines are laser guided boring & augering, pipe ramming, pipe jacking/tunnel boring (TBM), among others. Tunnelling is a highly specialized segment of the construction industry and as a result, has a very lightly populated landscape for competition. The previous owner/manager has agreed to a long term employment agreement and by retaining him and his expert team it will assist Enterprise to effectively integrate and invest into strategic growth initiatives. Leonard Jaroszuk, President & CEO of Enterprise comments; "CTHA has the potential for substantial growth over the next few years we are extremely excited to work with this tremendously skilled group."
Enterprise is projecting from the effective date of May 1, 2013; CTHA will bring in approximately $12 million in revenue while delivering nearly 40% in EBITDA for the remainder of 2013.
CTHA performs its services from the west coast through to central Canada across the energy, utility and infrastructure segments. Its clients range from Canada's largest rail companies and premier utility providers to leading infrastructure contractors and some of North America's largest pipeline companies. CTHA's revenue stream is well diversified between all of these segments.
Current infrastructure projects include a series of technically difficult tunnels being constructed at the massive $600 million Calgary International Airport expansion, while other crews are completing several large diameter utility crossings under the Trans Canada highway near Banff National Park. In Saskatchewan, crews are currently working to bring in underground water lines to one of Canada's largest Potash producers.
The 3 to 5 year outlook for pipeline construction is especially intriguing. CTHA is a leader in underground tunnelling for large diameter pipelines. Among several ongoing projects CTHA is engaged in a three year, long distance pipeline project which is in its first year of construction. CTHA provides underground tunnelling at several crossings which cannot be open cut, such as road, highway and rail crossings. In 2008, the Kinder Morgan Anchor Loop was put into service. CTHA was selected to perform the tunnelling through the extremely difficult terrain of Jasper National Park in the Canadian Rockies. Pipeline projects like these all require the specialized services that CTHA provides. The current roster of proposed long distance pipelines is at a historic high and Enterprise believes that the Company is extremely well positioned to benefit from this boom in pipeline construction.
We seek Safe Harbor.
antman
12 years ago
Enterprise Group earns $3.2-million in Q1
2013-05-09 09:43 ET - News Release
Mr. Daniel Boase reports
ENTERPRISE GROUP, INC. ANNOUNCES FIRST QUARTER RESULTS
Enterprise Group Inc. has provided its first quarter results for the period ended March 31, 2013, and its seventh consecutive quarter of profitability.
Quarterly highlights
Net profit for the quarter surpassed not only any historical quarter but also exceeded any full fiscal year's profitability in the history of the company.
Net income for the quarter was $3,167,000, or 34 per cent of revenue, compared with $169,000 in the same quarter last year, an increase of $2,998,000.
Earnings per share for the quarter were five cents per share compared with nil in the same quarter last year.
Revenue for the quarter increased by $5,273,000 to $8,904,000 compared with the same period last year.
Earnings before interest, tax, depreciation, amortization and stock-based compensation (EBITDAS) for the quarter increased by $3,306,000 to $3,901,000 or 44 per cent of revenue, compared with the same period last year.
Gross profit for the quarter was $5,202,000 or 58.4 per cent compared with $1,226,000 or 33.8 per cent for the same period last year.
The company's utilities/infrastructure construction division renewed a three-year, multimillion-dollar service contract with one of Canada's premier power suppliers and due to the high level of service and quality of work, this division was awarded a second contract from the same customer that is similar in size and scope. These contracts were signed in February of 2013.
The company added depth to its management team hiring Warren Cabral, CA, as chief financial officer to assist with the future growth of the company.
To assist in executing the company's strategy, in February $1.05-million was raised in a non brokered private placement of 4.2 million units at 25 cents per unit. Each unit comprises one common share and one common share purchase warrant. Each whole warrant entitles the holder to acquire one common share at an exercise price of 35 cents for a period of six months from the closing of the offering, subject to accelerated expiry in certain circumstances.
Also in February, the company signed a letter of intent to acquire a specialized underground infrastructure construction company for $12-million. This acquisition is aligned with the company's strategy to focus on infrastructure and specialty rental operations and will assist to mitigate the seasonality of the company's existing operations. The purchase price of the acquisition is just over two times EBITDA (earnings before interest, taxes, depreciation and amortization) of the target company.
To finance this acquisition, in March the company entered into an arrangement to raise $6-million of unsecured convertible debentures. The debentures have a two-year term at 6-per-cent interest and will be convertible into common shares at a price of 50 cents per share.
Additionally, subsequent to the quarter-end, on May 2, 2013, the company accepted a term sheet presented by PNC Bank Canada Branch to increase its current senior secured finance facility from $12.5-million to a maximum of $20-million.
SUMMARY FINANCIAL OVERVIEW
For the three months ended
March 31,
2013 2012
Revenue $8.9 $5.3
Gross profit 5.2 1.2
EBITDAS 3.9 .6
Net income 3.2 0.2
EPS 0.05 -
antman
12 years ago
Excellent earnings news out today!
------------------------------------
Enterprise Group earns $3.2-million in Q1
2013-05-09 09:43 ET - News Release
Mr. Daniel Boase reports
ENTERPRISE GROUP, INC. ANNOUNCES FIRST QUARTER RESULTS
Enterprise Group Inc. has provided its first quarter results for the period ended March 31, 2013, and its seventh consecutive quarter of profitability.
QUARTERLY HIGHLIGHTS
-- Net profit for the quarter surpassed not only any historical quarter but also exceeded any full fiscal year's profitability in the history of the Company.
-- Net income for the quarter was $3,167,000, or 34% of revenue, compared to $169,000 in the same quarter last year, an increase of $2,998,000.
-- Earnings per share for the quarter was $0.05 per share compared to $nil in the same quarter last year.
-- Revenue for the quarter increased by $5,273,000 to $8,904,000 compared to the same period last year.
-- EBITDAS(1) for the quarter increased by $3,306,000 to $3,901,000 or 44% of revenue,compared to the same period last year.
-- Gross profit for the quarter was $5,202,000 or 58.4% compared to $1,226,000 or 33.8% for the same period last year.
-- The Company's utilities/infrastructure construction division renewed a three year, multi-million dollar service contract with one of Canada's premier power suppliers and due to the high level of service and quality of work, this division was awarded a second contract from the same customer that is similar in size and scope. These contracts were signed in February of 2013.
-- The Company added depth to its management team hiring Warren Cabral, CA as Chief Financial Officer to assist with the future growth of the Company.
-- To assist in executing the Company's strategy, in February $1,050,000 was raised in a non brokered private placement of 4,200,000 units at $0.25 per unit. Each unit is comprised of one common share and one common share purchase warrant. Each whole warrant entitles the holder to acquire one common share at an exercise price of $0.35 for a period of six months from the closing of the offering, subject to accelerated expiry in certain circumstances.
-- Also in February, the Company signed a letter of intent to acquire a specialized underground infrastructure construction company for $12,000,000. This acquisition is aligned with the Company's strategy to focus on infrastructure and specialty rental operations and will assist to mitigate the seasonality of the Company's existing operations. The purchase price of the acquisition is just over two times EBITDA of the target company.
-- To finance this acquisition, in March the Company entered into an arrangement to raise $6,000,000 of unsecured convertible debentures. The debentures have a two year term at 6% interest and will be convertible into common shares at a price of $.50 per share.
-- Additionally, subsequent to the quarter end, on May 2, 2013, the Company accepted a term sheet presented by PNC Bank Canada Branch (PNC) to increase its current senior secured finance facility from $12,500,000 to a maximum of $20,000,000.
SUMMARY FINANCIAL OVERVIEW
For the three months ended
March 31
% of
2013 2012 % chg Revenue
------------------------------------------
Revenue $ 8.9 $ 5.3 145%
Gross Profit 5.2 1.2 324% 58%
EBITDAS 3.9 .6 556% 44%
Net Income 3.2 0.2 1,777% 34%
EPS 0.05 -
% change are representative of whole un-rounded numbers
(1) EBITDAS = Earnings Before Interest, Tax, Depreciation, Amortization and Stock Based Compensation
We seek Safe Harbor.
antman
12 years ago
Enterprise Group, Inc. Announces Increase to Existing Finance Facility
Leonard D. Jaroszuk, President and CEO of Enterprise Group, Inc. (TSX:E)("Enterprise" or "Corporation") is pleased to announce that the Corporation has accepted a term sheet presented by PNC Bank Canada Branch (PNC) to increase its current senior secured finance facility from $12.5 million to $20 million at the existing interest rate of prime plus 2%.
This increase coupled with the $6.0 million debenture financing announced March 26, 2013, will assist in facilitating the close of the acquisition of the specialized underground infrastructure company announced on February 28, 2013.
As illustrated in that announcement, preliminary unaudited sales revenue for the target acquisition was approximately $14.9 million and EBITDA of $5.8 million, for the year ending 2012.
Further to the existing terms, PNC has also agreed to increase the Corporation's 2013 capital expenditure program from $3.0 million to $11.0 million. This capital expenditure increase, together with the $6.0 million equity private placement announced April 26, 2013, will facilitate the aggressive growth plan to meet the demand for the services of Enterprise's business units.
About Enterprise Group, Inc.
Enterprise Group, Inc. is a consolidator of construction services companies operating in the energy, utility and transportation infrastructure industries.
The Company's focus is primarily underground construction & maintenance and specialized equipment rental. The Company's strategy is to acquire complementary service companies in Western Canada, consolidating capital, management and human
esources to support continued growth. Enterprise became a Western Canadian leader in flameless heat technology in September 2012 with its acquisition of Artic Therm International Ltd. and is poised to become a technological leader in underground infrastructure construction upon closing of its pending infrastructure construction acquisition.
Forward Looking Statements
Certain statements contained in this release constitute forward-looking information. These statements relate to future events or the Company's future performance. The use of any of the words "could", "expect", "believe", "will", "projected", "estimated" and similar expressions and statements relating to matters that are not historical facts are intended to identify forward-looking
information and are based on current beliefs or assumptions as to the outcome and timing of future events. Actual future results may differ materially. In particular, statements with respect to anticipated activity levels and profitability of the Company's utility and infrastructure division and anticipated increases in revenue and margins attributed to services provided by
the Company to the energy sector contain forward looking information. The Company's Annual Information Form and other documents filed with securities regulatory authorities (accessible through the SEDAR website at www.sedar.com)
describe the risks, material assumptions and other factors that could influence actual results and which are incorporated herein by reference. The forward-looking statements and information contained in this document are made as of the date hereof for the purpose of providing the readers with the Company's expectations for the next year. The forward-looking statements and information may not be appropriate for other purposes. The Company disclaims any intention or obligation to publicly update or revise any forward-looking information, whether as a result of new information, future events or otherwise, except as may be expressly required by applicable securities laws.
FOR FURTHER INFORMATION PLEASE CONTACT:
Enterprise Group, Inc.
Leonard D. Jaroszuk
President & CEO
780-418-4400 or TF: 888-303-3361
Enterprise Group, Inc.
Desmond O'Kell
Vice President, Corp. Development
780-418-4400 or TF: 888-303-3361
contact@EnterpriseOil.ca
www.EnterpriseOil.ca
antman
12 years ago
Enterprise Group arranges $6-million placement
2013-04-25 07:50 ET - News Release
Mr. Daniel Boase reports
ENTERPRISE GROUP, INC. ANNOUNCES PRIVATE PLACEMENT OF COMMON SHARES
Enterprise Group Inc. has entered into an agreement with a syndicate of agents lead by M Partners Inc., and including Beacon Securities Inc., to act as agents in respect of a best-efforts private placement offering of up to 12.5 million common shares of the company for gross proceeds of up to $6-million. Each common share will be issued at a price of 48 cents. All securities issued in connection with the offering will be subject to a hold period of four months and one day from the closing date.
The net proceeds of the offering will be used for capital expenditures related to Artic Therm International Ltd., acquisition and integration costs associated with the transaction announced Feb. 28, 2013, in the event of completion of that transaction, and for general working capital purposes.
The closing of the offering is subject to receipt by the company of all requisite regulatory approvals, including the approval of the Toronto Stock Exchange.
The closing of the offering is expected to occur on or about May 7, 2013, or such other date as agreed to by the agents and the company.
On the closing date the agents will receive, a cash commission equal to 6 per cent of the gross proceeds of the offering. In addition, the company will issue to the agents, on the closing date, such number of warrants as is equal to 6 per cent of the number of common shares sold pursuant to the offering. Each broker warrant will entitle the holder thereof to purchase one common share at the issue price at any time prior to the date that is 12 months from the closing date.
We seek Safe Harbor.
antman
12 years ago
E.TSX- Latest News- February 28, 2013
ENTERPRISE ANNOUNCES LOI TO PURCHASE UNDERGROUND INFRASTRUCTURE CONSTRUCTION CO.
Enterprise Group, Inc. ("Enterprise" or "Company") (TSX symbol -- E) is pleased to announce the signing of a letter of intent to purchase a highly successful specialized underground infrastructure construction company (the "private company") with operations based in Alberta.
The private company is a leader in specialized underground infrastructure construction in Western Canada. Enterprise's strategy is to continue to grow the private company in its core competencies while expanding services to a larger customer base while leveraging the synergies available through Enterprise's existing operations. For the year ended 2012, preliminary unaudited sales revenue for the private company was approximately $14.9 million and EBITDA was approximately $5.8 million.
Enterprise will purchase the shares of the private company for $12 million and will be funded by cash, asset debt financing, and $1,000,000 in vender take-back financing to be paid over two years. Completion of this acquisition will be subject to negotiation of a definitive share purchase agreement, satisfactory due diligence by Enterprise, completion of the asset-based debt financing and customary closing conditions. Enterprise expects to close the transaction on or before May 1, 2013.
Management is currently discussing available funding options with its investment banking advisors.
Enterprise Group, Inc. is a construction services company operating in the energy, utility and transportation infrastructure industry. The Company's focus is primarily underground construction and maintenance and above ground plants and facilities and specialized equipment rental. The Company's strategy is to acquire complementary service companies in Western Canada, consolidating capital, management and human resources to support continued growth.
Forward Looking Information
Certain statements contained in this news release constitute forward-looking information. These statements relate to future events or the Company's future performance. The use of any of the words "could", "expect", "believe", "will", "projected", "estimated" and similar expressions and statements relating to matters that are not historical facts are intended to identify forward-looking information and are based on the Company's current belief or assumptions as to the outcome and timing of such future events. Actual future results may differ materially. In particular, statements with respect to the completion of the proposed acquisition, the terms and conditions of the transaction, the completion of an asset-based debt financing and financial information relating to the private company include forward-looking information. The proposed acquisition may not be completed on the terms and conditions contemplated herein or at all. The Company's Annual Information Form and other documents filed with securities regulatory authorities (accessible through the SEDAR website www.sedar.com) describe the risks, material assumptions and other factors that could influence actual results and which are incorporated herein by reference. The Company disclaims any intention or obligation to publicly update or revise any forward-looking information, whether as a result of new information, future events or otherwise, except as may be expressly required by applicable securities laws.
Non-GAAP Measures
This news release contains references to EBITDA. The Company uses accounting principles that are generally accepted in Canada (the issuer's "GAAP"), which includes without limitation, International Financial Reporting Standards ("IFRS"). EBITDA is not a measure that has any standardized meaning prescribed by IFRS and is therefore referred to as a non-GAAP measure. This non-GAAP measure used by the Company may not be comparable to a similar measure used by other companies. Management believes that in addition to net income, EBITDA is a useful supplemental measure as it provides an indication of the results generated by the Company's principal business activities prior to consideration of how those activities are financed or how the results are taxed. EBITDA is calculated as net income excluding depreciation, amortization, interest and taxes.
antman
12 years ago
Sorry GRST is not the symbol-
I got the companies confused-
--------------
Regarding E.TSX:
There is no U.S. symbol that I can see--
Here is their strategy from their website:
-----------------------------------------------
Enterprise Sets a Strategy for Growth
Since our inception Enterprise Group has maintained a strong vision to be the largest underground construction and heavy equipment rental organization in Western Canada. With development activity in the energy services and civil construction sector expected to increase as the economy strengthens, the Enterprise Group is poised for further growth. Higher demand for energy and utilities coupled with increasing commodity prices, will allow producers and providers to reinvest into Infrastructure. Enterprise will have the opportunity to implement its aggressive growth strategy by acquiring 'best-in-class' businesses.
Primary Strategy
To accomplish this, Enterprise is implementing a strategy of acquiring and consolidating established, profitable infrastructure service companies with a near term goal of obtaining annual sales revenue of over $150 million. Enterprise is consolidating companies that have a proven track record, are well managed and are financially successful.
Enterprise Group, Inc: Trading on the TSX Exchange: Symbol "E"
Shares Outstanding: 60,966,697
Recent Trading Range $0.13 - $0.46
Transfer Agent:
Valliant Trust
Edmonton, Alberta
Legal:
Borden Ladner Gervais
Calgary, Alberta
Auditors:
Grant Thornton LLP.
Edmonton, Alberta
QualityStocks
16 years ago
Enterprise Oilfield Group Inc. (TSX: E) has Assembled a Knowledgeable Board of Advisors
Enterprise Oilfield Group receives advice from a Board of Advisors comprised of experienced individuals with expansive knowledge within the oil and gas industry. Strong leadership and wise guidance are two of the most important pillars of any business and Enterprise has done well to recognize and respond to that.
Douglas Watt, Projects Manager of A.G. Grant Construction, has spent more than 35 years of his career in the pipeline construction industry. Holding a variety of positions, Mr. Watt has been employed by several major pipeline construction companies such as Banister, Marine, Majestic, and Bechtel. Mr. Watt was previously the Superintendent of Veba Oil Operations and Mobil Oil in their respective Pipeline and Terminal Maintenance Operations. Doug Watt currently holds the position of Operations Manager and is instrumental in the communications between Enterprise and its operating subsidiaries.
James R. Chorney, an independent director, has been involved in the Canadian pipeline construction industry for 35 years where his experience has focused on managing major, large diameter, pipeline projects. He brings an extensive network of contacts and expertise in the procurement of equipment to the company. Currently, Jim is president of P.I.P.E. and Construction Ltd., a small construction company specializing in pipeline river crossings, utilizing equipment he has designed and manufactured.
Trevor King, General Manager of Trevor King Oilfield Services, established his own company where he gained invaluable knowledge of all facets of owning and operating a successful oilfield construction company. As an advisor to Enterprise, Trevor’s expertise in construction of pipelines and facilities and operating heavy equipment is invaluable in making operational decisions that support the long-term growth of the company.
Kurt Fletcher’s, Projects Manager of Trevor King Oilfield Services, background serving as a superintendent for pipeline and facility construction combined with his expertise as a Journeyman “B” Pressure Welder makes him a definite asset to Enterprise. In addition, Kurt has a wealth of hands-on field experience with pipeline installation and construction of oil batteries and gas compressors across Alberta and Saskatchewan.
QualityStocks
16 years ago
Enterprise Oilfield Group Inc. (TSX: E): Alberta’s Growth in Population and Economy
Enterprise Oilfield Group Inc. is a pipeline construction and horizontal directional drilling company with a primary focus on Alberta, Canada’s oilfield and utility infrastructure markets. During 2002 – 2007, Alberta’s economy grew at an average of 4.7%, compared to an average growth rate of 2.7% in Canada. The consensus forecast is Alberta’s economy will continue to outperform the national average in 2008 and 2009, but not to the levels seen during 2004 –2006 associated with the energy boom.
The current population in Alberta is estimated around 3.5 million, representing 10% of the population in Canada. During 2006 – 2011, the population of the province is forecasted to grow at an average of 2.99% per annum (from 3.29 million in 2006 to 3.81 million in 2011), compared to average growth of 0.82% for Canada during the same period. This is growth is positive for Enterprise’s utility infrastructure & directional drilling business, which provides basic infrastructure services, installation of utilities and telecommunication equipment.
Infrastructure spending in Alberta will likely remain strong in the short term considering the large inventory for major construction projects. In the midterm, infrastructure spending growth in Alberta may slow down but remain above the national average. However, there is a positive outlook for the long run, since the vast oil sands reserves in Alberta may fuel the province’s future economic growth and drive spending in the province’s infrastructure sector.
QualityStocks
16 years ago
Diversified Strategy Promises to Sustain Enterprise Oilfield Group Inc. (TSX: E) During Period of Low Oil Prices
By acquiring the well established TC Backhoe & Directional Drilling Inc., Enterprise Oilfield will be able to perform better than most oil field service companies that are less diversified. TC generates more than 75% of its revenues from infrastructure, and the rest from the energy service sector. The utility infrastructure & directional drilling business accounted for 39% of Enterprise’s revenues for the 9 months ended September 2008.
Currently, services provided by this segment includes installation of underground power, telecommunications and natural gas lines for some large companies, such as Shaw Communications (NYSE: SJR) and Fortis Inc. (TSX: FTS). According to management, the bulk of the company’s services are concentrated in urban areas, where utilizing directional drilling techniques for underground installation minimizes disruptions during the development of industrial, commercial and residential properties.
Because the utility infrastructure & directional drilling segment is a less seasonable business, it provides Enterprise with relatively stable revenues. Total infrastructure spending in the Province of Alberta grew rapidly at average annual rates of 13.3% and 17.5% during 2004–2008. Although the growth in the province will most likely slow down from the high levels seen in the past few years, it is expected to remain relatively strong compared with the national average.
QualityStocks
16 years ago
Continued, Sustainable Demand for Enterprise Oilfield Group Inc.’s (TSX: E) Services
The EIA, a section of the U.S. Department of Energy, predicts world oil production will grow at 1.16% per annum, during the period 2005 –2030, compared to consumption growth of 1.19% during the same period. For natural gas, the supply is forecasted to be in deficit through 2030, which is a positive for the Canadian natural gas industry since the deficit is likely to result in increased demand for imports from Canada.
Because the slowdown of the U.S. and global economies has substantially reduced demand for the near term, the Alberta provincial government introduced a new transitional rate for companies that drill new gas or conventional oil wells at a depth of between 1,000 and 3,500 m. The changes made by the government are likely to save companies that meet the drilling criteria and will be positive in stimulating spending and drilling.
Although the short term appears to be bleak for oil, the long term will bring record demand as more global economies emerge. According to Jim Rogers, oil reserves are dropping at an alarming rate of 7% per year. Of course when the lack of available supply is obvious and oil prices resume their upward climb, oil producers will be competing against each other for the business of oil service companies. Enterprise Oilfield Group is perfectly positioned to take advantage of this anticipated demand with its fleet of over 260 trucks and heavy-duty units, and its ability to offer a full array of services to multiple clients simultaneously.
QualityStocks
16 years ago
Enterprise Oilfield Group Inc.’s (TSX: E) Small Diameter Pipeline Construction Services
Enterprise Oilfield provides pipeline construction services, in addition to its utility infrastructure and directional drilling business. The company primarily focuses on the construction of small to medium diameter pipeline on steel gathering systems up to 12” in diameter, and related oilfield maintenance services to the energy services industry.
Services offered by Enterprise Oilfield include pipeline construction, repairs and maintenance, wellhead tie-ins, water injection lines, facilities construction and maintenance, oilfield hauling, CO2 injection, road & lease construction, site construction for drilling, and much more. According to the company, its major projects are weighted more in oil than in gas projects.
E&P companies award contracts to pipeline builders primarily based on their past performance and bidding prices. The price of building a small diameter pipeline is mainly determined by the pipeline’s length. Enterprise Oilfield has attracted orders from well known blue chips in the oil and gas industry such as such as Devon (NYSE: DVN), Canadian Natural (NYSE: CNQ), EnCana (NYSE: ECA), Apache (NYSE: APA), ConocoPhillips (NYSE: COP), and Penn West Energy Trust (NYSE: PWE).
QualityStocks
16 years ago
Enterprise Oilfield Group, Inc. (TSX: E) is On the Right Track
Enterprise Oilfield Group Inc., a pipeline construction and horizontal directional drilling company, has focused their efforts on central and northern Alberta’s oilfield and utility infrastructure markets. The company’s pipeline construction service focuses on small diameter pipeline construction, primarily on producing oil and gas fields. The utility infrastructure & directional drilling business reduces the company’s exposure to the oil and gas industry, and provides installation of underground power, telecommunications and natural gas lines to the utility infrastructure sector.
Enterprise’s strategy is to acquire profitable businesses in Alberta, while consolidating its capital, management and human resources to support continued growth. This acquisition strategy excludes companies that do not produce significant revenues or contribute to profitability. According to management, Enterprise will focus on growing a business organically after acquisition.
Enterprise has successfully achieved profitability in both the 15-month period ended December 2007 (net margin of 2.0%), and the first 9 months of 2008 (net margin of 4.7%), even while the sector experienced challenges in the WCSB and incurred losses. The company has clearly demonstrated its fiscal and operational prudence. It will be exciting to continue watching this company as it follows a methodical growth strategy.
QualityStocks
16 years ago
Fundamental Research Issues “Buy” Rating for Enterprise Oilfield Group Inc. (TSX: E)
Recently, Fundamental Research announced that it has initiated coverage on Enterprise Oilfield Group Inc. (TSX: E) with a report entitled “Initiating Coverage - Small Diameter Pipeline Construction and Utility Infrastructure & Directional Drilling Company in Alberta.” The full report is now available on their website: www.researchfrc.com.
In the 25 page report, the firm provides an overview of the company and its history, price forecasts for oil, analysis of Alberta and its economy, overview of management team, financial analysis, and a valuation of the company. Fundamental Research Analyst Brian Tang, CFA believes the company is a “Buy” with average risk. He affirmed the company is significantly undervalued, establishing a fair value estimate of $1.15.
QualityStocks
16 years ago
Enterprise Oilfield Group, Inc. (TSX: E): Are Oil Prices on the Verge of Rapid Recovery?
A sharp reduction in spending by oil producers points to a quick recovery for oil prices once the economic downturn begins to alleviate. Notably, cash-strapped producers have cut budgets faster and deeper than in past downturns. This lack of investment is already speeding up the rate of decline in older fields, and delaying the start of new production.
Service companies, such as Enterprise Oilfield Group, see a possible repeat of the last four years. During this period, oil prices rose to record levels as demand grew faster than new supplies, an imbalance that some believe was caused by a lack of investment during the previous downturn. With oil producers postponing and canceling major projects, history is very likely to repeat itself.
Francisco Blanch, head of global commodities research at Merrill Lynch, wrote, “The current WTI crude oil price weakness may be setting the stage for another rally in crude oil prices as the world emerges from the recession. Delayed and canceled projects on energy infrastructure will only add to the same supply bottlenecks that gave origin to the commodity super-cycle of the last seven years.”
Of course when the lack of available supply is obvious and oil prices resume their upward climb, oil producers will be competing against each other for the business of oil service companies. Enterprise Oilfield Group is perfectly positioned to take advantage of this anticipated demand. With a fleet of over 260 trucks and heavy-duty units, the company is able to offer a full array of services to multiple clients.
QualityStocks
16 years ago
Enterprise Oilfield Group, Inc. (TSX: E) Offers a Comprehensive Array of Services
With a fleet of over 260 trucks and heavy-duty units, Enterprise Oilfield Group is capable of building pipelines, facilities and installing underground utilities anywhere in Northern and Central Alberta. The company works with both the oil & gas and utility markets, with the majority of projects in pipeline construction and the minority in underground utility installation.
Enterprise specializes in small to medium diameter pipeline construction and maintenance projects primarily on steel gathering system pipe under 12″ in diameter. With pipeline construction operations based in Slave Lake, Peace River, and Wainwright, Alberta, the company offers: Pipeline construction, Pipeline repair and maintenance, Facilities construction and maintenance, Directional drilling and large diameter tunneling, Well head tie-ins, CO2 and water injection projects, as well as road and lease construction.
Utilizing its fully integrated heavy haul trucking division, Enterprise can meet its own transportation and logistics needs for materials, equipment and finished product deliveries. The company’s trucking division has the capabilities to haul equipment, pipe, tanks and over dimensional freight (pipe of up to 50′ lengths). The Fleet currently consists of 10 Tractor Units, including a tri-drive picker tracker and numerous Trailers.
The company also offers a full array of other services, including: Welding, Hot fusion services for all diameters of JDPE pipe, Well-site modification, Processing facility construction, Integrity services, Hydro-testing, Gathering systems, Pipe Rotations, Change-outs (Removal and Replacement), Field Hard Surface Overlay, Pipe Wear Monitoring, “Smart” pigging services, Remediation, Hydro-excavation, Flexible Labour Pool, Loading and offloading, Inventory control, Marshalling, Double jointing, Bending, Beveling, and Coating.
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