Announcement • Sep 09
Precision Drilling Corporation (TSX:PD) entered into a definitive agreement to acquire CWC Energy Services Corp. (TSXV:CWC) from BBU Alta Investments L.P., Brookfield BBP (CANADA) LP, Canada Pension Plan Investment Board, directors, officers and others for approximately CAD 110 million. Precision Drilling Corporation (TSX:PD) entered into a definitive agreement to acquire CWC Energy Services Corp. (TSXV:CWC) from BBU Alta Investments L.P., Brookfield BBP (CANADA) LP, Canada Pension Plan Investment Board, directors, officers and others for approximately CAD 110 million on September 7, 2023. The transaction value of approximately CAD 140 million, including the assumption of approximately CAD 40 million in CWC debt. Under the terms of the Agreement, CWC shareholders will receive total consideration of 947,909 shares of Precision, valued at approximately CAD 88 million and approximately CAD 14 million in cash, resulting in an implied blended offer price of approximately CAD 0.197 per CWC common share based on Precision’s closing price of CAD 92.58 on the Toronto Stock Exchange on September 1, 2023. CWC shareholders shall have the ability to elect for either cash or Precision shares, or a combination thereof, subject to proration and consideration caps set out in the Agreement.
The Transaction will require approval by at least 66 2/3% of holders of the CWC shares represented in person or by proxy at a special meeting of holders of CWC shares to be called to consider the Transaction and, if required, a majority of the votes cast by holders of CWC shares after excluding the votes cast by those persons whose votes may not be included under the Multilateral Instrument 61-101 - Protection of Minority Security Holders in Special Transactions. The Transaction is expected to close before the end of 2023 and is subject to stock exchange and Alberta Court of King’s Bench approval, Competition Bureau approval, regulatory approvals and the satisfaction of other customary closing conditions. The Board of Directors of CWC has unanimously approved the Transaction and recommends that holders of CWC shares vote in favour of the special resolution approving the Transaction.
CIBC Capital Markets (“CIBC”) is acting as financial advisor to CWC. CIBC has provided a verbal opinion to CWC’s Board of Directors to the effect that, as of the date of such opinion and based upon and subject to the assumptions, limitations and qualifications to be set forth in the written opinion of CIBC, the consideration to be received by CWC shareholders under the Agreement is fair, from a financial point of view, to CWC shareholders. Burnet, Duckworth and Palmer LLP is acting as CWC’s legal advisor. Evercore is acting as financial advisor and Osler, Hoskin & Harcourt LLP is acting as legal advisor to Precision. Reported Earnings • Jul 28
Second quarter 2023 earnings released: CA$0.018 loss per share (vs CA$0.005 profit in 2Q 2022) Second quarter 2023 results: CA$0.018 loss per share (down from CA$0.005 profit in 2Q 2022). Revenue: CA$34.5m (down 19% from 2Q 2022). Net loss: CA$1.63m (down 161% from profit in 2Q 2022). Over the last 3 years on average, earnings per share has increased by 129% per year but the company’s share price has only increased by 31% per year, which means it is significantly lagging earnings growth. Announcement • May 17
CWC Energy Services Corp. to Report Q2, 2023 Results on Jul 27, 2023 CWC Energy Services Corp. announced that they will report Q2, 2023 results on Jul 27, 2023 Reported Earnings • Apr 29
First quarter 2023 earnings released: EPS: CA$0.01 (vs CA$0.007 in 1Q 2022) First quarter 2023 results: EPS: CA$0.01 (up from CA$0.007 in 1Q 2022). Revenue: CA$57.5m (up 41% from 1Q 2022). Net income: CA$4.67m (up 36% from 1Q 2022). Profit margin: 8.1% (down from 8.4% in 1Q 2022). Over the last 3 years on average, earnings per share has increased by 127% per year but the company’s share price has only increased by 24% per year, which means it is significantly lagging earnings growth. Recent Insider Transactions Derivative • Mar 17
CEO, President & Director exercised options to buy CA$213k worth of stock. On the 15th of March, Duncan Au exercised options to buy 968k shares at a strike price of around CA$0.20, costing a total of CA$194k. This transaction amounted to 11% of their direct individual holding at the time of the trade. Since June 2022, Duncan's direct individual holding has increased from 8.23m shares to 8.51m. Company insiders have collectively bought CA$962k more than they sold, via options and on-market transactions, in the last 12 months. Recent Insider Transactions • Mar 08
Independent Director recently bought CA$75k worth of stock On the 3rd of March, Wade McGowan bought around 322k shares on-market at roughly CA$0.23 per share. This transaction amounted to 8.9% of their direct individual holding at the time of the trade. This was the largest purchase by an insider in the last 3 months. Despite this recent purchase, insiders have collectively sold CA$781k more in shares than they bought in the last 12 months. Reported Earnings • Mar 03
Full year 2022 earnings released: EPS: CA$0.081 (vs CA$0.009 in FY 2021) Full year 2022 results: EPS: CA$0.081 (up from CA$0.009 in FY 2021). Revenue: CA$205.3m (up 100% from FY 2021). Net income: CA$41.7m (up CA$37.1m from FY 2021). Profit margin: 20% (up from 4.5% in FY 2021). Over the last 3 years on average, earnings per share has increased by 116% per year but the company’s share price has only increased by 30% per year, which means it is significantly lagging earnings growth. Announcement • Dec 19
CWC Energy Services Corp. to Report Q4, 2022 Results on Mar 01, 2023 CWC Energy Services Corp. announced that they will report Q4, 2022 results on Mar 01, 2023 Recent Insider Transactions • Dec 11
Independent Director recently sold CA$64k worth of stock On the 6th of December, Daryl Austin sold around 267k shares on-market at roughly CA$0.24 per share. This transaction amounted to 1.2% of their direct individual holding at the time of the trade. In the last 3 months, there was an even bigger sale from another insider worth CA$75k. Insiders have been net sellers, collectively disposing of CA$908k more than they bought in the last 12 months. Recent Insider Transactions Derivative • Dec 09
Independent Director exercised options to buy CA$72k worth of stock. On the 7th of December, Wade McGowan exercised options to buy 322k shares at a strike price of around CA$0.25, costing a total of CA$80k. This transaction amounted to 9.8% of their direct individual holding at the time of the trade. Since June 2022, Wade has owned 3.30m shares directly. Company insiders have collectively bought CA$81k more than they sold, via options and on-market transactions, in the last 12 months. Recent Insider Transactions • Dec 03
Independent Director recently sold CA$64k worth of stock On the 30th of November, Daryl Austin sold around 267k shares on-market at roughly CA$0.24 per share. This transaction amounted to 1.2% of their direct individual holding at the time of the trade. In the last 3 months, there was an even bigger sale from another insider worth CA$75k. Insiders have been net sellers, collectively disposing of CA$839k more than they bought in the last 12 months. Recent Insider Transactions • Nov 10
Chief Financial Officer recently sold CA$75k worth of stock On the 1st of November, Stuart King sold around 260k shares on-market at roughly CA$0.29 per share. This transaction amounted to 51% of their direct individual holding at the time of the trade. This was the largest sale by an insider in the last 3 months. Stuart has been a net seller over the last 12 months, reducing personal holdings by CA$384k. Reported Earnings • Oct 29
Third quarter 2022 earnings released: EPS: CA$0.019 (vs CA$0.004 in 3Q 2021) Third quarter 2022 results: EPS: CA$0.019 (up from CA$0.004 in 3Q 2021). Revenue: CA$61.8m (up 114% from 3Q 2021). Net income: CA$9.52m (up 371% from 3Q 2021). Profit margin: 15% (up from 7.0% in 3Q 2021). Over the last 3 years on average, earnings per share has increased by 89% per year but the company’s share price has only increased by 37% per year, which means it is significantly lagging earnings growth. Announcement • Aug 23
CWC Energy Services Corp. to Report Q3, 2022 Results on Oct 28, 2022 CWC Energy Services Corp. announced that they will report Q3, 2022 results on Oct 28, 2022 Recent Insider Transactions Derivative • Aug 06
Chief Financial Officer exercised options to buy CA$50k worth of stock. On the 3rd of August, Stuart King exercised options to buy 200k shares at a strike price of around CA$0.28, costing a total of CA$57k. This transaction amounted to 299% of their direct individual holding at the time of the trade. Since December 2021, Stuart's direct individual holding has decreased from 316.85k shares to 66.85k. Company insiders have collectively bought CA$430k more than they sold, via options and on-market transactions, in the last 12 months. Board Change • Jul 31
High number of new directors Independent Director Nancy Foster was the last director to join the board, commencing their role in 2022. Reported Earnings • Jul 30
Second quarter 2022 earnings released: EPS: CA$0.01 (vs CA$0.002 loss in 2Q 2021) Second quarter 2022 results: EPS: CA$0.01 (up from CA$0.002 loss in 2Q 2021). Revenue: CA$42.7m (up 159% from 2Q 2021). Net income: CA$2.66m (up CA$3.42m from 2Q 2021). Profit margin: 6.2% (up from net loss in 2Q 2021). Over the last 3 years on average, earnings per share has increased by 58% per year but the company’s share price has only increased by 28% per year, which means it is significantly lagging earnings growth. Recent Insider Transactions Derivative • Jun 30
CEO, President & Director exercised options to buy CA$278k worth of stock. On the 24th of June, Duncan Au exercised options to buy 1m shares at a strike price of around CA$0.22, costing a total of CA$255k. This transaction amounted to 16% of their direct individual holding at the time of the trade. Since September 2021, Duncan's direct individual holding has increased from 6.30m shares to 7.10m. Company insiders have collectively bought CA$355k more than they sold, via options and on-market transactions, in the last 12 months. Announcement • Jun 29
CWC Energy Services Corp. Announces Board Changes CWC Energy Services Corp. announced that at its AGM held on June 28, 2022, shareholders elected Mr. Jason Chehade and Ms. Nancy Foster as Directors to the Board. Mr. Chehade is a Chartered Professional Accountant and Chartered Financial Analyst with extensive experience in private equity, capital markets, corporate finance and business operations. He is currently a Vice President in Brookfield Asset Management's Private Equity Group ("Brookfield") focusing on strategy and operational value creation across investments in energy, industrials and healthcare. Prior to joining Brookfield in 2017, Mr. Chehade held roles in equity research at Peters & Co. Limited with a focus on oilfield services and at EY in the assurance practice. He is currently a Director on the Board of Ember Resources Inc. Ms. Foster is a Corporate Director with 38 years of oil and gas industry experience focused on Human Resources and Corporate Services. From 2011 to 2020 she held the positions of Senior Vice President and Special Advisor to the CEO and Senior Vice President, Human and Corporate Resources for Husky Energy Inc. prior to its merger with Cenovus Energy Inc. From 1996 to 2011, Nancy held positions of increasing responsibility in Corporate Planning Services and Human Resources with Nexen Inc. ending in the capacity of In-Country Manager for Norway. She currently serves on the Board of Governors for the University of Calgary and is the Chairperson for Luna Child and Youth Advocacy Centre. In conjunction with Mr. Chehade's appointment, CWC has accepted the resignation of Mr. Dean Schultz as a Director of the company. Recent Insider Transactions • Jun 12
Chief Financial Officer recently sold CA$60k worth of stock On the 10th of June, Stuart King sold around 200k shares on-market at roughly CA$0.30 per share. This was the largest sale by an insider in the last 3 months. Stuart has been a seller over the last 12 months, reducing personal holdings by CA$252k. Announcement • Jun 11
CWC Energy Services Corp. to Report Q2, 2022 Results on Jul 29, 2022 CWC Energy Services Corp. announced that they will report Q2, 2022 results on Jul 29, 2022 Recent Insider Transactions Derivative • Jun 05
Chief Financial Officer exercised options to buy CA$57k worth of stock. On the 3rd of June, Stuart King exercised options to buy 200k shares at a strike price of around CA$0.30, costing a total of CA$59k. This transaction amounted to 299% of their direct individual holding at the time of the trade. Since June 2021, Stuart's direct individual holding has decreased from 220.85k shares to 66.85k. Company insiders have collectively bought CA$146k more than they sold, via options and on-market transactions, in the last 12 months. Recent Insider Transactions • May 22
Chief Financial Officer recently sold CA$52k worth of stock On the 17th of May, Stuart King sold around 200k shares on-market at roughly CA$0.26 per share. This was the largest sale by an insider in the last 3 months. Stuart has been a seller over the last 12 months, reducing personal holdings by CA$158k. Recent Insider Transactions Derivative • May 07
Chief Financial Officer exercised options to buy CA$56k worth of stock. On the 3rd of May, Stuart King exercised options to buy 200k shares at a strike price of around CA$0.29, costing a total of CA$57k. This transaction amounted to 299% of their direct individual holding at the time of the trade. Since June 2021, Stuart's direct individual holding has decreased from 220.85k shares to 66.85k. Company insiders have collectively bought CA$117k more than they sold, via options and on-market transactions, in the last 12 months. Announcement • May 05
CWC Energy Services Corp., Annual General Meeting, Jun 28, 2022 CWC Energy Services Corp., Annual General Meeting, Jun 28, 2022, at 09:00 Mountain Daylight. Location: #202 Edmund Taylor Room, Stock Exchange Tower, 300 – 5th Avenue SW Calgary Alberta Canada Reported Earnings • May 01
First quarter 2022 earnings released: EPS: CA$0.007 (vs CA$0.001 in 1Q 2021) First quarter 2022 results: EPS: CA$0.007 (up from CA$0.001 in 1Q 2021). Revenue: CA$40.8m (up 66% from 1Q 2021). Net income: CA$3.44m (up CA$2.99m from 1Q 2021). Profit margin: 8.4% (up from 1.8% in 1Q 2021). Over the last 3 years on average, earnings per share has increased by 30% per year but the company’s share price has only increased by 18% per year, which means it is significantly lagging earnings growth. Board Change • Apr 27
Insufficient new directors No new directors have joined the board in the last 3 years. The company's board is composed of: No new directors. 2 experienced directors. 4 highly experienced directors. Independent Director Dean Schultz was the last director to join the board, commencing their role in 2014. The company’s insufficient board refreshment is considered a risk according to the Simply Wall St Risk Model. Reported Earnings • Mar 04
Full year 2021 earnings: EPS in line with expectations, revenues disappoint Full year 2021 results: EPS: CA$0.01 (up from CA$0.048 loss in FY 2020). Revenue: CA$106.5m (up 57% from FY 2020). Net income: CA$4.57m (up CA$29.1m from FY 2020). Profit margin: 4.3% (up from net loss in FY 2020). The move to profitability was driven by higher revenue. Revenue missed analyst estimates by 60%. Over the last 3 years on average, earnings per share has fallen by 2% per year whereas the company’s share price has increased by 3% per year. Recent Insider Transactions Derivative • Dec 10
CEO, President & Director exercised options to buy CA$153k worth of stock. On the 6th of December, Duncan Au exercised options to buy 985k shares at a strike price of around CA$0.16, costing a total of CA$153k. This transaction amounted to 16% of their direct individual holding at the time of the trade. Since March 2021, Duncan's direct individual holding has increased from 6.33m shares to 7.15m. Company insiders have collectively bought CA$55k more than they sold, via options and on-market transactions, in the last 12 months. Reported Earnings • Oct 30
Third quarter 2021 earnings released The company reported a strong third quarter result with improved earnings, revenues and profit margins. Third quarter 2021 results: Revenue: CA$28.9m (up 180% from 3Q 2020). Net income: CA$2.02m (up CA$2.83m from 3Q 2020). Profit margin: 7.0% (up from net loss in 3Q 2020). Over the last 3 years on average, the company's share price growth rate has exceeded its earnings growth rate by 78 percentage points per year, which is a significant difference in performance. Announcement • Aug 28
An undisclosed buyer acquired Swabbing rig assets and business of CWC Energy Services Corp. An undisclosed buyer acquired Swabbing rig assets and business of CWC Energy Services Corp., on August 27, 2021. The cash proceeds from the sale will be used to pay down debt and for general corporate purposes.
An undisclosed buyer completed the acquisition of Swabbing rig assets and business of CWC Energy Services Corp., on August 27, 2021. Reported Earnings • Jul 31
Second quarter 2021 earnings released The company reported a solid second quarter result with reduced losses, improved revenues and improved control over expenses. Second quarter 2021 results: Revenue: CA$19.1m (up 381% from 2Q 2020). Net loss: CA$759.0k (loss narrowed 80% from 2Q 2020). Over the last 3 years on average, the company's share price growth rate has exceeded its earnings growth rate by 106 percentage points per year, which is a significant difference in performance. Reported Earnings • May 03
First quarter 2021 earnings released The company reported a decent first quarter result with improved earnings and profit margins, although revenues were weaker. First quarter 2021 results: Revenue: CA$25.7m (down 23% from 1Q 2020). Net income: CA$447.0k (up CA$19.6m from 1Q 2020). Profit margin: 1.7% (up from net loss in 1Q 2020). Over the last 3 years on average, the company's share price growth rate has exceeded its earnings growth rate by 120 percentage points per year, which is a significant difference in performance. Announcement • May 01
CWC Energy Services Corp. Provides Impairment of Assets for the Three Months Ended March 31, 2021 CWC Energy Services Corp. provided impairment of assets for the three months ended March 31, 2021. For the three months ended March 31, 2021, the company reported Impairment of assets was $1,296,000 against $25,451,000 a year ago. Reported Earnings • Mar 06
Full year 2020 earnings released: CA$0.05 loss per share (vs CA$0.003 loss in FY 2019) The company reported a poor full year result with increased losses, weaker revenues and weaker control over costs. Full year 2020 results: Revenue: CA$74.7m (down 31% from FY 2019). Net loss: CA$24.5m (loss widened CA$22.8m from FY 2019). Over the last 3 years on average, the company's share price growth rate has exceeded its earnings growth rate by 113 percentage points per year, which is a significant difference in performance. Announcement • Feb 05
CWC Energy Services Corp. to Report Q4, 2020 Results on Mar 04, 2021 CWC Energy Services Corp. announced that they will report Q4, 2020 results on Mar 04, 2021 Recent Insider Transactions Derivative • Dec 11
Insider exercised options to buy CA$68k worth of stock. On the 7th of December, Michael DuBois exercised options to buy 525.85k shares at a strike price of around CA$0.13, costing a total of CA$71k. Since December 2019, Michael's direct individual holding has increased from 358.33k shares to 525.85k. Company insiders have collectively sold CA$63k more than they bought, via options and on-market transactions in the last 12 months. Reported Earnings • Nov 09
Third quarter 2020 earnings released: CA$0.002 loss per share The company reported a poor third quarter result with increased losses and weaker revenues and control over expenses. Third quarter 2020 results: Revenue: CA$13.0m (down 53% from 3Q 2019). Net loss: CA$810.0k (loss widened 246% from 3Q 2019). Over the last 3 years on average, earnings per share has fallen by 106% per year but the company’s share price has only fallen by 8% per year, which means it has not declined as severely as earnings.