Canyon had results that looked like a blowout to me today — more than doubling the dividend and reporting earnings that were almost 20% higher than expected. Shares have not responded all that dramatically, though they had run up a few weeks ago and come back in a bit. Growth will likely be a little bit less dramatic this year, since their fleet is not going to increase in size as dramatically, but per-job numbers and earnings still look to be very good, and by all accounts the demand for high-pressure frac pumpers isn’t going anywhere as the deep reservoirs in Western Canada continue to be actively explored for natural gas liquids and oil.
So Canyon is now trading for a little bit less than 10 times 2011 income of C$1.53, with a dividend of 4% (60 cents per share, per year, paid quarterly). Competitors like Calfrac are also doing extremely well, Calfrac is bigger and more diversified and also raised its dividend substantially, I like the simplicity of Canyon’s business and that they’re levered to Canada but wouldn’t argue that the other high-end frac services/pumping companies are necessarily worse bets than Canyon. Calfrac, for example, is now even cheaper at 8X 2011 earnings, though the dividend yield is slightly lower at about 3%.
Results release is here, FYI: http://finance.yahoo.com/news/canyon-reports-record-results-fourth-020700400.html
Yes, I still own Canyon and haven’t changed my position in recent months — it’s a midsize position for me.