Canadian OFS sector: Natural gas a tailwind, but oil uncertainty pervades - Canaccord

Total Energy Services

20/11/2020 12:03

** Canaccord Genuity raises PT on select oilfield services
companies, citing a modest seasonal recovery in activity in the
Western Canadian Sedimentary Basin (WCSB) and Q3 results
    ** Says Q3/20 results fully reflected cost containment
initiatives following the COVID-19 induced oil price crash
    ** Brokerage looking for incremental WCSB activity through
Q1/21, driven primarily by natural gas directed spending in the
Montney and Deep Basin
    ** Sees oil price volatility pervading for some time, adding
that this uncertainty and ongoing E&P consolidation will likely
prevent a meaningful recovery in oilfield fundamentals until
2H21 at the earliest
    ** Brokerage's focus names remain Secure Energy Services
 SES.TO  (raises PT to C$2.75 from C$2.50), Tervita Corp
 TEV.TO 
    ** Hikes PT on Total Energy Services  TOT.TO  to C$3 from
C$2.75 and Ensign Energy Services  ESI.TO  to C$0.8 from C$0.65
    

 (Reporting by Arundhati Sarkar in Bengaluru)
 ((Arundhati.Sarkar@thomsonreuters.com;
twitter.com/Arundhati_05; +1 646 223 8780 Ext: 2776))