Fundamental Research Corp.’s Post

🌍 Oilfield Services Industry: What's Driving Growth? The oilfield services sector has seen significant movement recently, with a focus on fleet expansion and new contracts driving growth. However, as we look ahead, industry experts predict a slowdown in North American oil and gas CAPEX growth to 2.2% in 2024, down from a robust 19% in 2023. This shift is largely due to slower GDP growth and higher lending rates, which could challenge companies in the sector. But not all companies are equally affected. Take ENTERPRISE GROUP Inc. (TSX: E) for instance—this company is defying the trend. With a remarkable 216% YoY stock increase, Enterprise is leading the pack among oilfield services stocks. Their recent Q2-2024 report shows revenue up by 41% YoY, with EPS turning positive and surpassing analyst estimates by 25%. What's behind this success? New contracts with tier-one clients, strategic fleet expansion, and an aggressive CAPEX plan, including a new facility in Fort St. John, B.C. Our analysts believe that despite the anticipated sector-wide slowdown, Enterprise’s expanded rental equipment fleet positions them well for continued growth, with revenue projections for 2024 now up to 23%, compared to an earlier estimate of 13%. Curious to know more? Our latest report dives deeper into the factors behind Enterprise's outperformance: https://lnkd.in/g88fM_dc Disclaimer: FRC provides issuer-paid coverage. Past performance is not indicative of future results. #OilfieldServices #EnergySector #FleetExpansion #StockGrowth #EnterpriseGroup #TSX #OTCQB #Investing #MarketAnalysis #EquityResearch #RevenueGrowth #EPS #CAPEX #AnalystUpdate

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