Archive for the ‘Enterprise Oilfield Group Inc. E.TO’ Category

Enterprise Oilfield Group Inc. (TSX: E) has Assembled a Knowledgeable Board of Advisors

Wednesday, February 25th, 2009

Enterprise Oilfield Group receives advice from a Board of Advisors comprised of experienced individuals with expansive knowledge within the oil and gas industry. Strong leadership and wise guidance are two of the most important pillars of any business and Enterprise has done well to recognize and respond to that.

Douglas Watt, Projects Manager of A.G. Grant Construction, has spent more than 35 years of his career in the pipeline construction industry. Holding a variety of positions, Mr. Watt has been employed by several major pipeline construction companies such as Banister, Marine, Majestic, and Bechtel. Mr. Watt was previously the Superintendent of Veba Oil Operations and Mobil Oil in their respective Pipeline and Terminal Maintenance Operations. Doug Watt currently holds the position of Operations Manager and is instrumental in the communications between Enterprise and its operating subsidiaries.

James R. Chorney, an independent director, has been involved in the Canadian pipeline construction industry for 35 years where his experience has focused on managing major, large diameter, pipeline projects. He brings an extensive network of contacts and expertise in the procurement of equipment to the company. Currently, Jim is president of P.I.P.E. and Construction Ltd., a small construction company specializing in pipeline river crossings, utilizing equipment he has designed and manufactured.

Trevor King, General Manager of Trevor King Oilfield Services, established his own company where he gained invaluable knowledge of all facets of owning and operating a successful oilfield construction company. As an advisor to Enterprise, Trevor’s expertise in construction of pipelines and facilities and operating heavy equipment is invaluable in making operational decisions that support the long-term growth of the company.

Kurt Fletcher’s, Projects Manager of Trevor King Oilfield Services, background serving as a superintendent for pipeline and facility construction combined with his expertise as a Journeyman “B” Pressure Welder makes him a definite asset to Enterprise. In addition, Kurt has a wealth of hands-on field experience with pipeline installation and construction of oil batteries and gas compressors across Alberta and Saskatchewan.

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Enterprise Oilfield Group Inc. (TSX: E): Alberta’s Growth in Population and Economy

Monday, February 23rd, 2009

Enterprise Oilfield Group Inc. is a pipeline construction and horizontal directional drilling company with a primary focus on Alberta, Canada’s oilfield and utility infrastructure markets. During 2002 – 2007, Alberta’s economy grew at an average of 4.7%, compared to an average growth rate of 2.7% in Canada. The consensus forecast is Alberta’s economy will continue to outperform the national average in 2008 and 2009, but not to the levels seen during 2004 –2006 associated with the energy boom.

The current population in Alberta is estimated around 3.5 million, representing 10% of the population in Canada. During 2006 – 2011, the population of the province is forecasted to grow at an average of 2.99% per annum (from 3.29 million in 2006 to 3.81 million in 2011), compared to average growth of 0.82% for Canada during the same period. This is growth is positive for Enterprise’s utility infrastructure & directional drilling business, which provides basic infrastructure services, installation of utilities and telecommunication equipment.

Infrastructure spending in Alberta will likely remain strong in the short term considering the large inventory for major construction projects. In the midterm, infrastructure spending growth in Alberta may slow down but remain above the national average. However, there is a positive outlook for the long run, since the vast oil sands reserves in Alberta may fuel the province’s future economic growth and drive spending in the province’s infrastructure sector.

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Diversified Strategy Promises to Sustain Enterprise Oilfield Group Inc. (TSX: E) During Period of Low Oil Prices

Thursday, February 19th, 2009

By acquiring the well established TC Backhoe & Directional Drilling Inc., Enterprise Oilfield will be able to perform better than most oil field service companies that are less diversified. TC generates more than 75% of its revenues from infrastructure, and the rest from the energy service sector. The utility infrastructure & directional drilling business accounted for 39% of Enterprise’s revenues for the 9 months ended September 2008.

Currently, services provided by this segment includes installation of underground power, telecommunications and natural gas lines for some large companies, such as Shaw Communications (NYSE: SJR) and Fortis Inc. (TSX: FTS). According to management, the bulk of the company’s services are concentrated in urban areas, where utilizing directional drilling techniques for underground installation minimizes disruptions during the development of industrial, commercial and residential properties.

Because the utility infrastructure & directional drilling segment is a less seasonable business, it provides Enterprise with relatively stable revenues. Total infrastructure spending in the Province of Alberta grew rapidly at average annual rates of 13.3% and 17.5% during 2004–2008. Although the growth in the province will most likely slow down from the high levels seen in the past few years, it is expected to remain relatively strong compared with the national average.

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Continued, Sustainable Demand for Enterprise Oilfield Group Inc.’s (TSX: E) Services

Tuesday, February 17th, 2009

The EIA, a section of the U.S. Department of Energy, predicts world oil production will grow at 1.16% per annum, during the period 2005 –2030, compared to consumption growth of 1.19% during the same period. For natural gas, the supply is forecasted to be in deficit through 2030, which is a positive for the Canadian natural gas industry since the deficit is likely to result in increased demand for imports from Canada.

Because the slowdown of the U.S. and global economies has substantially reduced demand for the near term, the Alberta provincial government introduced a new transitional rate for companies that drill new gas or conventional oil wells at a depth of between 1,000 and 3,500 m. The changes made by the government are likely to save companies that meet the drilling criteria and will be positive in stimulating spending and drilling.

Although the short term appears to be bleak for oil, the long term will bring record demand as more global economies emerge. According to Jim Rogers, oil reserves are dropping at an alarming rate of 7% per year. Of course when the lack of available supply is obvious and oil prices resume their upward climb, oil producers will be competing against each other for the business of oil service companies. Enterprise Oilfield Group is perfectly positioned to take advantage of this anticipated demand with its fleet of over 260 trucks and heavy-duty units, and its ability to offer a full array of services to multiple clients simultaneously.

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Enterprise Oilfield Group Inc.’s (TSX: E) Small Diameter Pipeline Construction Services

Wednesday, February 11th, 2009

Enterprise Oilfield provides pipeline construction services, in addition to its utility infrastructure and directional drilling business. The company primarily focuses on the construction of small to medium diameter pipeline on steel gathering systems up to 12” in diameter, and related oilfield maintenance services to the energy services industry.

Services offered by Enterprise Oilfield include pipeline construction, repairs and maintenance, wellhead tie-ins, water injection lines, facilities construction and maintenance, oilfield hauling, CO2 injection, road & lease construction, site construction for drilling, and much more. According to the company, its major projects are weighted more in oil than in gas projects.

E&P companies award contracts to pipeline builders primarily based on their past performance and bidding prices. The price of building a small diameter pipeline is mainly determined by the pipeline’s length. Enterprise Oilfield has attracted orders from well known blue chips in the oil and gas industry such as such as Devon (NYSE: DVN), Canadian Natural (NYSE: CNQ), EnCana (NYSE: ECA), Apache (NYSE: APA), ConocoPhillips (NYSE: COP), and Penn West Energy Trust (NYSE: PWE).

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Enterprise Oilfield Group, Inc. (TSX: E) is On the Right Track

Monday, February 9th, 2009

Enterprise Oilfield Group Inc., a pipeline construction and horizontal directional drilling company, has focused their efforts on central and northern Alberta’s oilfield and utility infrastructure markets. The company’s pipeline construction service focuses on small diameter pipeline construction, primarily on producing oil and gas fields. The utility infrastructure & directional drilling business reduces the company’s exposure to the oil and gas industry, and provides installation of underground power, telecommunications and natural gas lines to the utility infrastructure sector.

Enterprise’s strategy is to acquire profitable businesses in Alberta, while consolidating its capital, management and human resources to support continued growth. This acquisition strategy excludes companies that do not produce significant revenues or contribute to profitability. According to management, Enterprise will focus on growing a business organically after acquisition.

Enterprise has successfully achieved profitability in both the 15-month period ended December 2007 (net margin of 2.0%), and the first 9 months of 2008 (net margin of 4.7%), even while the sector experienced challenges in the WCSB and incurred losses. The company has clearly demonstrated its fiscal and operational prudence. It will be exciting to continue watching this company as it follows a methodical growth strategy.

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Fundamental Research Issues “Buy” Rating for Enterprise Oilfield Group Inc. (TSX: E)

Thursday, February 5th, 2009

Recently, Fundamental Research announced that it has initiated coverage on Enterprise Oilfield Group Inc. (TSX: E) with a report entitled “Initiating Coverage – Small Diameter Pipeline Construction and Utility Infrastructure & Directional Drilling Company in Alberta.” The full report is now available on their website: www.researchfrc.com.

In the 25 page report, the firm provides an overview of the company and its history, price forecasts for oil, analysis of Alberta and its economy, overview of management team, financial analysis, and a valuation of the company. Fundamental Research Analyst Brian Tang, CFA believes the company is a “Buy” with average risk. He affirmed the company is significantly undervalued, establishing a fair value estimate of $1.15.

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Enterprise Oilfield Group, Inc. (TSX: E): Are Oil Prices on the Verge of Rapid Recovery?

Monday, February 2nd, 2009

A sharp reduction in spending by oil producers points to a quick recovery for oil prices once the economic downturn begins to alleviate. Notably, cash-strapped producers have cut budgets faster and deeper than in past downturns. This lack of investment is already speeding up the rate of decline in older fields, and delaying the start of new production.

Service companies, such as Enterprise Oilfield Group, see a possible repeat of the last four years. During this period, oil prices rose to record levels as demand grew faster than new supplies, an imbalance that some believe was caused by a lack of investment during the previous downturn. With oil producers postponing and canceling major projects, history is very likely to repeat itself.

Francisco Blanch, head of global commodities research at Merrill Lynch, wrote, “The current WTI crude oil price weakness may be setting the stage for another rally in crude oil prices as the world emerges from the recession. Delayed and canceled projects on energy infrastructure will only add to the same supply bottlenecks that gave origin to the commodity super-cycle of the last seven years.”

Of course when the lack of available supply is obvious and oil prices resume their upward climb, oil producers will be competing against each other for the business of oil service companies. Enterprise Oilfield Group is perfectly positioned to take advantage of this anticipated demand. With a fleet of over 260 trucks and heavy-duty units, the company is able to offer a full array of services to multiple clients simultaneously.

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Enterprise Oilfield Group, Inc. (TSX: E) Offers a Comprehensive Array of Services

Wednesday, January 28th, 2009

With a fleet of over 260 trucks and heavy-duty units, Enterprise Oilfield Group is capable of building pipelines, facilities and installing underground utilities anywhere in Northern and Central Alberta. The company works with both the oil & gas and utility markets, with the majority of projects in pipeline construction and the minority in underground utility installation.

Enterprise specializes in small to medium diameter pipeline construction and maintenance projects primarily on steel gathering system pipe under 12″ in diameter. With pipeline construction operations based in Slave Lake, Peace River, and Wainwright, Alberta, the company offers: Pipeline construction, Pipeline repair and maintenance, Facilities construction and maintenance, Directional drilling and large diameter tunneling, Well head tie-ins, CO2 and water injection projects, as well as road and lease construction.

Utilizing its fully integrated heavy haul trucking division, Enterprise can meet its own transportation and logistics needs for materials, equipment and finished product deliveries. The company’s trucking division has the capabilities to haul equipment, pipe, tanks and over dimensional freight (pipe of up to 50′ lengths). The Fleet currently consists of 10 Tractor Units, including a tri-drive picker tracker and numerous Trailers.

The company also offers a full array of other services, including: Welding, Hot fusion services for all diameters of JDPE pipe, Well-site modification, Processing facility construction, Integrity services, Hydro-testing, Gathering systems, Pipe Rotations, Change-outs (Removal and Replacement), Field Hard Surface Overlay, Pipe Wear Monitoring, “Smart” pigging services, Remediation, Hydro-excavation, Flexible Labour Pool, Loading and offloading, Inventory control, Marshalling, Double jointing, Bending, Beveling, and Coating.

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A Look at Enterprise Oilfield Group Inc.’s (TSX: E) Successful History

Monday, January 26th, 2009

Enterprise Oilfield Group is focused on utilizing a comprehensive business plan to acquire regionally independent pipeline construction and complimentary service companies operating in the Western Canadian Sedimentary Basin (WCSB). In Summer of 2005, the company acquired the highly successful A.G. Grant Construction located in Slave Lake, Alberta. AG is an established pipeline construction firm operating for more than 35 years.

In April of 2006, Enterprise acquired Trevor King Oilfield Service located in Wainwright, Alberta. Maintaining a focus on pipeline construction, Trevor King Oilfield was founded in 1994. The company has experienced incredible growth over the past several years and has developed an excellent reputation for their quality work and safety record.

In May of 2007, Enterprise completed the acquisition of T.C. Backhoe & Directional Drilling Inc located in Sherwood Park, Alberta. T.C. has been operating for more than three decades and generates the majority of its revenue from utility companies with approximately 20% from the energy services sector. Directional drilling and installation of underground power, telecommunications and natural gas lines are the main focuses of the company.

On October 1st 2007, the Company combined all of the operating subsidiaries into one entity, now known as ENTERPRISE ENERGY SERVICES INC. By reorganizing, the company is able to market all its services under the “Enterprise” banner, as well as possibly reduce administrative costs. Under this banner, Enterprise offers pipeline construction and horizontal drilling services throughout North-Central Alberta from construction offices in Slave Lake, Sherwood Park, Wainwright and Debolt, and field offices in Fox Creek, Wabasca and Red Earth.

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Enterprise Oilfield Group Inc. (TSX: E) is Led by a Team of Experienced Experts

Thursday, January 22nd, 2009

Enterprise Oil’s management team is comprised of highly skilled experts in pipeline construction and oilfield maintenance. The individuals that make up this team follow a rigorous Safety and Quality Control Program that meets or exceeds industry standards. Delivering quality to customers is the company’s top priority.

Leonard D. Jaroszuk, President and Chief Executive Officer, is known for his extremely dedicated and insightful entrepreneurial spirit. He has been involved in and managed a number of public companies engaged in Real Estate, Construction, Natural Resources and Exploration over the past two decades. Mr. Jaroszuk took a leading role in developing Enterprise Oilfield’s early growth and has served as a director on several Oil and Gas service and manufacturing companies.

Desmond O’Kell, Vice President, has 19 years of business operations and finance experience in the public marketplace. Prior to Enterprise Oilfield Group, he was President of Rochester Resources, a producing gold & silver mining company listed on the TSX-Venture Exchange. Mr. O’Kell also serves as a director of another Canadian listed resource company.

Colette Dziwenka, Corporate Controller and Interim Chief Financial Officer, has focused her career for the last 20+ years on the fields of Accounting, Finance and Business Admin. Before becoming involved with Enterprise Oilfield Group, she served the executive management positions of Finance Manager, Chief Financial Officer and Vice President of Administration. Colette is a motivated individual that continually strives to strategically lend to the success of the Company.

Ron Ingram, one of Enterprise’s directors, brings more than 17 years experience running an oilfield services company with over $10 Million in sales. His valuable knowledge in pipeline construction and oilfield maintenance services is a definite asset to the success of Enterprise.

Director Jason Krueger CFA currently serves as the President of Redwood Capital Corporation, a privately held corporation that provides corporate finance advisory and strategic planning services for publicly traded energy and energy service companies. He earned a Bachelor of Commerce degree from the University of Calgary, the Chartered Financial Analyst (CFA) designation and has more than 15 years of experience in the energy sector.

Director Nick DeMare holds a Bachelor of Commerce degree from the University of British Columbia and is a member in good standing of the Institute of Chartered Accountants of British Columbia. For more than 15 years, he has been the President of Chase Management Ltd., a private company which provides a broad range of administrative, management and financial services to private and public companies engaged in mineral exploration and development, gold and silver production, oil and gas exploration and production and venture capital.

Director James (Jim) P. Stout has been the managing partner of Stout & Company LLP Chartered Accountants since 1994. Mr. Stout is the audit partner on ten TSX public company audit clients and has served on the board of directors of numerous TSX and TSX Venture reporting issuers. As part of his directorship in these companies, he has gained extensive experience as the chairman of audit committees or a member of the audit committee.

Douglas Watt, Projects Manager, has enjoyed an expansive career in the pipeline construction industry. Holding positions from equipment operation, estimating to inspection, He has served several major pipeline construction companies such as Banister, Marine, Majestic, and Bechtel. Mr. Watt has spent much of the last 20 years in Libya as a Superintendent with Veba Oil Operations and Mobil Oil in their respective Pipeline and Terminal Maintenance Operations. Doug Watt is instrumental in the communications between Enterprise and its operating subsidiaries.

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Enterprise Oilfield Group, Inc. (TSX: E) Third Quarter Results; Long Term Outlook

Tuesday, January 20th, 2009

Recently, Enterprise Oilfield Group, Inc. reported that its consolidated revenue for the three months ended September 30, 2008 totaled $8.7 million versus $8.5 million for the third quarter of the year prior. The Company had EBITDAS of $1.6 million and a net income of $0.6 million for the quarter.

The management team believes the long term outlook for the company’s business segments is positive. Although continuing credit market instability will likely be unfavorably to the energy industry during 2009, Enterprise is well positioned due to the diversity of its business and strong performance of its infrastructure services division. The company has a history of success as a result of the commitment of its field staff to provide excellent service to its customers regardless of industry conditions, and the management’s commitment to prudent financial management.

Enterprise intends to continue to actively pursue opportunities to enter new geographic territories and make strategic acquisitions. While the company cannot be sure of the near-term movements in the financial markets, it is well positioned to continue generating positive growth relative to their peers. Enterprise has positioned itself for improved levels of demand for its services and anticipates pursuing opportunistic growth initiatives.

Enterprise has an exceptional position in the current market place and believes that 2009 holds tremendous opportunities for continued revenue growth. Since inception, the company’s goal has been to increase the level of customer service with the best and safest practices, the newest equipment and the best field staff.

In 2008, Enterprise paid down over $2.4 million in long term debt through its accelerated debt repayment plan, purchased several pieces of new equipment for the operations, and is selling off older equipment in order to maintain a new, efficient and cost effective fleet. The company has also expanded into the Peace River area, which has opened the door to very profitable, year round, infrastructure and facilities maintenance opportunities, smoothing out the cyclical effects of the traditional pipeline industry.

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Enterprise Oilfield Group Inc. (TSX: E) is “One to Watch”

Thursday, January 15th, 2009

Enterprise Oilfield Group Inc. is a pipeline construction and horizontal directional drilling company with a primary focus on Alberta, Canada’s oilfield and utility infrastructure markets. The company’s pipeline construction service targets small diameter pipeline construction projects, primarily on producing oil and gas fields. The utility infrastructure & directional drilling business provides installation of underground power, telecommunications and natural gas lines to the utility infrastructure sector.

Since its inception, Enterprise Oilfield Group has maintained its focus to be the largest, most comprehensive pipeline construction and maintenance company in Alberta. The company is now implementing a strategy of acquiring and consolidating small to mid size pipeline construction companies to meet its near term goal of generating more than $100 million in annual sales revenue. Enterprise Oil is specifically targeting companies that have a proven track record, are well managed and financially successful.

The company has a growing equipment asset base of approximately $18 million, including a fleet of more than 250 trucks and heavy equipment, and has been successful in attracting blue-chip clients such as Devon (NYSE: DVN), Canadian Natural (NYSE: CNQ), EnCana (NYSE: ECA), Apache (NYSE: APA), ConocoPhillips (NYSE: COP), and Penn West Energy Trust (NYSE: PWE).

The company is led by President and CEO Leonard D. Jaroszuk who has two decades of extensive experience in the real estate, construction, natural resources and exploration industries. He took a leading role in developing Enterprise Oilfield’s early growth and has served as a director on several Oil and Gas service and manufacturing companies. Jaroszuk’s demanding management style, together with his understanding and vision, has put the company on track to become an industry leader in the pipeline construction industry in Alberta.

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