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Secure Energy Services (TSE:SES)
:SES

Secure Energy Services (SES) AI Stock Analysis

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Secure Energy Services

(TSX:SES)

Rating:76Outperform
Price Target:
C$18.00
▲(19.28%Upside)
Secure Energy Services is showing a strong financial trajectory, bolstered by effective cash management and strategic growth initiatives. While technical indicators and recent earnings call reflect positive momentum, macroeconomic risks and valuation concerns slightly temper the overall outlook.
Positive Factors
Contracts
Secure Energy Services delivered solid Q1/25 results, highlighted by a new 10-year Montney contract for a produced water facility.
Financial Guidance
The company reaffirmed its 2025 guidance, indicating strong resilience in financial results despite commodity price volatility.
Share Buybacks
Secure Energy Services repurchased approximately 5.3 million shares, continuing to drive per share metrics higher.
Negative Factors
Capital Expenditure
Secure Energy Services increased its 2025 growth capital expenditure to $125 million, focusing on produced water infrastructure in the Montney.

Secure Energy Services (SES) vs. iShares MSCI Canada ETF (EWC)

Secure Energy Services Business Overview & Revenue Model

Company DescriptionSecure Energy Services (SES) is a leading integrated energy services company operating primarily in Canada and the United States. The company specializes in providing midstream infrastructure and environmental and fluid management services to the oil and gas industry. SES offers a diverse range of solutions, including processing, recovering, and disposal of waste by-products generated throughout the lifecycle of oil and gas projects, as well as providing innovative midstream services such as pipeline transportation and oil recovery.
How the Company Makes MoneySecure Energy Services generates revenue through multiple streams. The primary source of income is its midstream infrastructure services, which involve the transportation, processing, and storage of crude oil and natural gas. The company earns fees from oil producers for the use of its pipelines and facilities. Additionally, SES provides environmental and fluid management services, which include the treatment and disposal of waste fluids and solids, generating revenue from service fees charged to its clients. Key factors contributing to SES's earnings include its strategic location of facilities near significant oil and gas production areas, long-term contracts with major energy companies, and its ability to offer comprehensive solutions that enhance operational efficiencies for its clients.

Secure Energy Services Earnings Call Summary

Earnings Call Date:May 02, 2025
(Q1-2025)
|
% Change Since: 14.67%|
Next Earnings Date:Jul 29, 2025
Earnings Call Sentiment Neutral
The earnings call reflects a strong start to 2025 with several strategic initiatives and solid financial performance. However, macroeconomic uncertainties and specific challenges such as extreme weather and commodity price declines tempered the overall positive outlook.
Q1-2025 Updates
Positive Updates
Strong Start to 2025
SECURE Waste Infrastructure Corp. reported a solid start to 2025 with high-quality earnings and stable cash flow, driven by recurring waste volumes. Adjusted EBITDA was $121 million, representing a 33% EBITDA margin.
Share Buyback and Capital Return Strategy
SECURE repurchased 5.3 million common shares for $79 million and launched a $200 million Substantial Issuer Bid in April. The company is on track to return nearly $400 million to shareholders in 2025.
Increased Organic Growth Capital Program
The 2025 organic growth capital program was increased to $125 million, supported by a 10-year commercial agreement with a senior Montney producer. Key projects include two new greenfield water disposal facilities in Alberta.
Phase 3 Expansion of Clearwater Terminal
Completed the Phase 3 expansion of the Clearwater terminal, increasing capacities to 75,000 barrels per day and adding treating capabilities for truck and emulsion volumes.
Acquisition of Edmonton-based Metal Recycling Business
Closed the acquisition of an Edmonton-based Metal Recycling business for $162 million, strengthening processing capabilities and improving logistics through investment in railcars.
Negative Updates
Impact of Extreme Cold Weather
Extreme cold weather in February temporarily softened activity levels, impacting processing volumes.
Cautious Stance Due to Macroeconomic Volatility
Ongoing macroeconomic volatility, including uncertainties surrounding tariffs and recessionary concerns, contributed to a weaker economic outlook.
Decline in Commodity Prices
Recent declines in commodity prices have added to the uncertainty for customers, impacting their business outlooks.
Decision Not to Proceed with Metal Recycling Acquisition
SECURE decided not to proceed with an $18 million acquisition in the Metal Recycling business due to due diligence outcomes.
Company Guidance
In the Q1 2025 conference call, SECURE Waste Infrastructure Corp. maintained its full-year adjusted EBITDA guidance range of $510 million to $540 million, despite macroeconomic uncertainties and a recent decline in commodity prices. The company reported an adjusted EBITDA of $121 million for the quarter, with a 33% EBITDA margin. SECURE executed a share buyback strategy, repurchasing 5.3 million shares for $79 million and launching a $200 million Substantial Issuer Bid. The company increased its 2025 organic growth capital program to $125 million, supported by new 10-year commercial agreements, and highlighted key projects such as new water disposal facilities in Alberta. SECURE closed a significant acquisition in the metals recycling sector for $162 million and maintains a leverage ratio below its target range, showing financial strength and strategic growth focus.

Secure Energy Services Financial Statement Overview

Summary
Secure Energy Services is on a positive financial trajectory, with strong improvements in profitability and cash flow. Revenue growth has been robust historically, although recent data shows slight contraction. Increased leverage is a potential concern, but the company maintains a solid equity base and efficient cash management. Overall, the company demonstrates resilience and operational efficiency, poised for continued growth if managed carefully.
Income Statement
78
Positive
Secure Energy Services shows a strong rebound in financial performance. The TTM gross profit margin is 3.93%, with a net profit margin of 1.90%. Both margins have improved significantly from prior years, indicating enhanced operational efficiency. Revenue growth is impressive, with a notable increase from 2020 to 2024, although revenue slightly declined in the TTM period. EBIT and EBITDA margins for TTM are 2.47% and 4.10%, respectively, reflecting solid profitability, albeit with room for improvement.
Balance Sheet
70
Positive
The balance sheet reflects moderate financial health. The debt-to-equity ratio in the TTM is 0.73, which is manageable but has increased compared to earlier periods, indicating higher leverage. ROE is 20.33% for the TTM, showcasing efficient use of equity to generate profits. The equity ratio stands at 40.45%, suggesting a stable capital structure with a balanced approach to leveraging assets.
Cash Flow
85
Very Positive
Cash flow performance is robust, with a TTM operating cash flow to net income ratio of 2.98, indicating strong cash generation relative to net income. The free cash flow to net income ratio is 2.20, highlighting effective cash management and strong free cash flow growth. The company has shown consistent improvement in free cash flow over the years, supporting its financial flexibility.
Breakdown
TTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income StatementTotal Revenue
10.43B10.67B8.24B8.00B3.77B1.82B
Gross Profit
410.00M422.00M512.00M493.00M-60.00M-2.57M
EBIT
257.00M268.00M353.00M324.00M-210.00M-68.54M
EBITDA
427.00M931.00M542.00M527.00M-40.00M60.00M
Net Income Common Stockholders
198.00M582.00M195.00M184.00M-204.00M-87.19M
Balance SheetCash, Cash Equivalents and Short-Term Investments
12.00M26.00M12.00M12.00M10.00M6.78M
Total Assets
2.84B2.28B2.84B2.84B2.94B1.42B
Total Debt
1.10B454.00M1.10B1.03B1.32B434.38M
Net Debt
1.09B428.00M1.09B1.02B1.31B427.59M
Total Liabilities
1.66B1.24B1.66B1.57B1.83B711.08M
Stockholders Equity
1.19B1.04B1.19B1.27B1.11B683.70M
Cash FlowFree Cash Flow
435.00M363.00M227.00M315.00M31.00M77.38M
Operating Cash Flow
590.00M497.00M430.00M411.00M74.00M148.72M
Investing Cash Flow
-340.00M954.00M-155.00M-58.00M-43.00M-60.06M
Financing Cash Flow
-493.00M-1.44B-272.00M-346.00M-26.00M-89.32M

Secure Energy Services Technical Analysis

Technical Analysis Sentiment
Neutral
Last Price15.09
Price Trends
50DMA
14.03
Positive
100DMA
14.32
Positive
200DMA
14.47
Positive
Market Momentum
MACD
0.40
Positive
RSI
52.10
Neutral
STOCH
55.26
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:SES, the sentiment is Neutral. The current price of 15.09 is below the 20-day moving average (MA) of 15.23, above the 50-day MA of 14.03, and above the 200-day MA of 14.47, indicating a neutral trend. The MACD of 0.40 indicates Positive momentum. The RSI at 52.10 is Neutral, neither overbought nor oversold. The STOCH value of 55.26 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for TSE:SES.

Secure Energy Services Peers Comparison

Overall Rating
UnderperformOutperform
Sector (66)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
TSWCN
77
Outperform
C$65.99B76.067.96%0.68%14.23%-18.94%
TSSES
76
Outperform
C$3.45B19.0416.22%2.65%13.51%-58.43%
66
Neutral
$4.46B12.115.38%5.02%4.17%-11.82%
TSBLM
64
Neutral
C$53.10M2,014.290.16%49.38%-93.75%
TSGFL
63
Neutral
$25.03B9.57-10.02%0.13%1.37%-9742.41%
* Industrials Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
TSE:SES
Secure Energy Services
15.02
3.79
33.75%
TSE:WCN
Waste Connections
255.06
17.47
7.35%
TSE:GFL
GFL Environmental
68.06
15.64
29.84%
TSE:BLM
BluMetric Environmental
1.43
0.98
217.78%

Secure Energy Services Corporate Events

DividendsFinancial Disclosures
SECURE Announces Dividend and Upcoming Financial Results Release
Positive
Jun 16, 2025

SECURE Waste Infrastructure Corp. has announced a quarterly dividend of $0.10 per common share, payable on July 15, 2025, to shareholders of record as of July 1, 2025. The dividend is classified as an eligible dividend for Canadian tax purposes. Additionally, SECURE will release its 2025 second quarter financial results on July 29, 2025, followed by a conference call to discuss the results. This announcement underscores SECURE’s commitment to providing shareholder value and maintaining transparency with its stakeholders.

The most recent analyst rating on (TSE:SES) stock is a Hold with a C$15.00 price target. To see the full list of analyst forecasts on Secure Energy Services stock, see the TSE:SES Stock Forecast page.

Stock Buyback
Secure Energy Services Concludes Substantial Issuer Bid
Neutral
May 20, 2025

Secure Energy Services has announced the final results of its substantial issuer bid, where it will purchase 9,382,390 shares at $14.50 each, totaling approximately $136 million. This move represents about 4% of the company’s issued shares, and after the buyback, the company will have 221,492,148 shares outstanding. The transaction is expected to impact the company’s share structure and potentially its market positioning, while shareholders are advised to consider tax implications of the deemed dividend from the share repurchase.

The most recent analyst rating on (TSE:SES) stock is a Hold with a C$15.00 price target. To see the full list of analyst forecasts on Secure Energy Services stock, see the TSE:SES Stock Forecast page.

Stock Buyback
Secure Energy Services Announces $136 Million Share Buyback
Positive
May 15, 2025

Secure Energy Services announced the preliminary results of its substantial issuer bid, expecting to return approximately $136 million to shareholders. The bid, which was undersubscribed, reflects shareholder confidence in the company’s long-term value. Secure plans to purchase 9,382,391 shares at $14.50 each, representing about 4% of its outstanding shares. The company maintains a strong balance sheet and robust cash flows, allowing it to continue prioritizing capital allocation and shareholder returns through additional share buybacks.

The most recent analyst rating on (TSE:SES) stock is a Hold with a C$15.00 price target. To see the full list of analyst forecasts on Secure Energy Services stock, see the TSE:SES Stock Forecast page.

Private Placements and FinancingBusiness Operations and Strategy
SECURE Expands and Extends Credit Facility to Bolster Growth
Positive
May 13, 2025

SECURE Waste Infrastructure Corp. has announced an amendment and extension of its Senior Secured Revolving Credit Facility, increasing its size from $800 million to $900 million and extending its maturity to May 31, 2028. This expansion is set to enhance SECURE’s financial flexibility, supporting its strategic priorities of disciplined growth and capital returns to shareholders. The amendment reflects the company’s strong financial partnerships and commitment to responsible capital management, positioning SECURE to navigate market conditions and evaluate opportunities for long-term value creation.

The most recent analyst rating on (TSE:SES) stock is a Hold with a C$15.00 price target. To see the full list of analyst forecasts on Secure Energy Services stock, see the TSE:SES Stock Forecast page.

Executive/Board ChangesShareholder MeetingsBusiness Operations and Strategy
Secure Waste Infrastructure Corp. Announces Successful Shareholder Meeting Outcomes
Positive
May 3, 2025

Secure Waste Infrastructure Corp. announced the successful election of all proposed directors at its 2025 Annual and Special Meeting of Shareholders, along with the reappointment of KPMG LLP as independent auditors. The meeting also saw the approval of the Corporation’s Omnibus Incentive Plan and its approach to executive compensation. These developments are expected to strengthen Secure’s governance and operational strategies, further solidifying its position in the waste management and energy infrastructure sectors.

Stock BuybackBusiness Operations and StrategyFinancial Disclosures
SECURE Waste Infrastructure Corp. Reports Strong Q1 2025 Results and Expands Growth Initiatives
Positive
May 2, 2025

SECURE Waste Infrastructure Corp. reported strong financial results for Q1 2025, achieving an adjusted EBITDA of $121 million and maintaining its guidance for the year. The company is increasing its growth capital program to $125 million, supported by a new water disposal infrastructure project. SECURE is also focusing on strategic growth through share buybacks and the integration of its newly acquired metals recycling business, aiming to enhance its infrastructure footprint and deliver sustainable growth.

Stock BuybackRegulatory Filings and Compliance
Secure Energy Services Obtains Exemptive Relief for Substantial Issuer Bid
Positive
Apr 23, 2025

Secure Energy Services has announced that it has obtained exemptive relief from the Alberta Securities Commission in connection with its substantial issuer bid. This relief pertains to certain extension, proportionate take-up, and related disclosure requirements. The company has engaged Scotia Capital Inc. as a financial advisor and Odyssey Trust Company as a depositary for the offer. This move is expected to streamline the issuer bid process and potentially enhance shareholder value, reflecting SECURE’s strategic efforts to optimize its financial operations.

Stock Buyback
Secure Energy Services Announces $200 Million Share Buyback
Positive
Apr 8, 2025

Secure Energy Services announced a substantial issuer bid to purchase up to $200 million of its outstanding common shares, representing approximately 5.97% to 7.22% of the total shares, depending on the final purchase price. This move, conducted via a modified Dutch auction, aims to optimize the company’s capital structure and potentially enhance shareholder value, pending necessary regulatory approvals.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.