Western Energy Services (WRG) AI Stock Analysis

• Market Cap: C$74.45M
• Dividend Yield: N/A
• Average Volume (3M): 16.64K
• Price to Earnings (P/E): ―
• Beta (1Y): -0.19
• Revenue Growth: -4.44%
• EPS Growth: 0.75%
• Country: CA
• Employees: 615
• Sector: Energy
• Sector Strength: 61
• Industry: Oil & Gas Drilling
• EPS (TTM): -0.21
• Shares Outstanding: 33,843,020
• 10 Day Avg. Volume: 948
• 30 Day Avg. Volume: 16,640
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): 0.33
• Price to Cash Flow (P/CF): 1.30
• P/FCF Ratio: 1.70
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0

Western Energy Services' stock score reflects mixed financial performance with strengths in cost management and financial stability but challenges in profitability and revenue growth. Technical indicators suggest bearish momentum, and valuation metrics highlight ongoing profitability issues. However, recent corporate events, such as the loan facility extension and strategic budget planning, provide a positive outlook for future operational flexibility and strategic positioning.

Western Energy Services Business Overview & Revenue Model

Company Description

Western Energy Services (WRG) is a company operating in the energy sector, primarily focused on providing oilfield services and solutions. The company offers a range of services including drilling, well servicing, and oilfield rentals, catering to the needs of the oil and gas industry. WRG leverages its expertise and advanced technologies to support exploration and production activities, ensuring efficient and effective operations for its clients.

How the Company Makes Money

Western Energy Services generates revenue through its comprehensive suite of oilfield services. The company's primary revenue streams include fees charged for drilling and well servicing operations, where it provides necessary equipment and expertise to facilitate oil and gas extraction. Additionally, WRG earns income from renting specialized oilfield equipment to operators in the energy industry. The company's profitability is influenced by factors such as the level of oil and gas exploration activities, global oil prices, and its ability to maintain strong partnerships with major energy producers, enhancing its service offerings and market reach.

Western Energy Services Financial Statement Overview

Summary

Western Energy Services displays a mixed financial performance with strengths in cost management and cash flow generation, but challenges in revenue growth and profitability. The company has managed to reduce leverage, which enhances financial stability, yet persistent net losses and declining revenue growth pose challenges for future profitability.

Income Statement

The income statement reveals a mixed performance. Gross profit margin has improved to 81.6% in 2024 from 9.35% in 2023, indicating better cost management. However, the net profit margin remains negative due to continued net losses, though slightly better than 2023. Revenue has decreased by 4.44% in 2024 compared to 2023, showing a decline in growth. The EBIT margin is at 0% in 2024, indicating weak operational profitability, while the EBITDA margin of 19.06% demonstrates some operational efficiency.

Balance Sheet

The balance sheet shows a relatively stable financial position, with a debt-to-equity ratio of 0.34 in 2024, down from 0.39 in 2023, indicating reduced leverage. Return on equity is negative due to net losses, which is a concern for investors. The equity ratio is at 68.12%, reflecting a strong equity base relative to assets, suggesting financial stability but also highlighting the lack of profitability.

Cash Flow

The cash flow statement shows a decline in free cash flow growth rate, as 2024's free cash flow of $25.19 million is lower than 2023's $28.73 million. However, the operating cash flow to net income ratio is strong at 6.54, indicating solid cash generation relative to net losses. The free cash flow to net income ratio is also robust at -3.52, suggesting good cash flow management despite net losses.

Breakdown
Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
223.08M	233.45M	200.34M	131.68M	103.68M
	Gross Profit
182.03M	21.82M	160.25M	89.65M	55.42M
	EBIT
0.00	2.81M	-2.25M	-19.41M	-28.78M
	EBITDA
42.52M	45.34M	37.94M	22.43M	10.32M
	Net Income Common Stockholders
-7.16M	-7.21M	29.00M	-35.81M	-41.30M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
3.79M	6.25M	8.88M	7.48M	19.32M
	Total Assets
430.98M	442.93M	475.71M	456.00M	495.63M
	Total Debt
98.75M	115.22M	131.69M	240.42M	241.99M
	Net Debt
94.96M	109.29M	122.81M	232.94M	222.67M
	Total Liabilities
135.13M	147.27M	173.18M	269.50M	273.15M
	Stockholders Equity
293.62M	293.37M	300.59M	184.51M	220.80M
Cash Flow		Free Cash Flow
25.19M	28.73M	-5.69M	9.77M	24.93M
	Operating Cash Flow
46.80M	51.35M	28.54M	16.63M	27.72M
	Investing Cash Flow
-21.91M	-25.45M	-28.95M	-5.69M	-3.01M
	Financing Cash Flow
-27.03M	-28.85M	1.44M	-22.79M	-9.41M

Western Energy Services Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 2.17
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:WRG, the sentiment is Negative. The current price of 2.17 is below the 20-day moving average (MA) of 2.24, below the 50-day MA of 2.37, and below the 200-day MA of 2.67, indicating a bearish trend. The MACD of -0.04 indicates Negative momentum. The RSI at 42.11 is Neutral, neither overbought nor oversold. The STOCH value of 35.42 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for TSE:WRG.

Western Energy Services Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
TCW	78 Outperform	$857.09M	8.30	21.89%	4.63%	0.84%	-1.74%
SES	75 Outperform	C$3.57B	6.74	52.24%	2.60%	28.30%	227.26%
CEU	70 Outperform	$1.54B	8.32	26.23%	1.96%	8.79%	31.76%
PD	66 Neutral	$842.02M	7.19	6.90%	―	-1.83%	-62.53%
Sector *	57 Neutral	$7.70B	4.18	-3.52%	8.32%	0.35%	-64.68%
ESI	53 Neutral	C$394.05M	14.37	-1.55%	―	-6.00%	-150.20%
WRG	48 Neutral	C$74.45M	―	-2.44%	―	-4.44%	0.75%

Western Energy Services Corporate Events

Western Energy Services Reports 2024 Financial Results with Strategic Adjustments

Western Energy Services Corp. reported its financial and operational results for the fourth quarter and full year of 2024. The company experienced a 6% increase in fourth-quarter revenue compared to the previous year, driven by higher contract drilling revenue in Canada, despite a net loss of $2.0 million. The year-end results showed a 4% decrease in annual revenue due to reduced activity in the US and lower third-party recoveries in Canada. The company extended the maturity date of its Second Lien Facility, reflecting strategic financial management amidst fluctuating market conditions.

Western Energy Services Announces CEO Retirement and Leadership Transition

Western Energy Services Corp. announced the retirement of its Chief Executive Officer, Alex R.N. MacAusland, who has been with the company for nearly 20 years. MacAusland played a crucial role in navigating the company through significant challenges in the Canadian energy sector, including a major recapitalization in 2022, which strengthened the company’s financial position. The board will begin the search for a permanent CEO, with Gavin Lane, the current Chief Financial Officer, stepping in as interim CEO. Chantel Calancia will take on the interim CFO role. This leadership transition is expected to maintain the company’s momentum as it continues to build its business in improving market conditions.

Western Energy Services Extends Loan Facility and Unveils 2025 Budget

Western Energy Services Corp. has announced an extension to its second lien term loan facility with Alberta Investment Management Corporation, now maturing in May 2027, which enhances the company’s financial flexibility. The firm also unveiled its 2025 capital expenditure budget of approximately $20 million, focusing primarily on maintenance and some expansion, indicating a strategic adaptation to market conditions.