Enteq Technologies Share Discussion Threads

[glasshalfull] 25/3/2014 13:03

Falling US natural gas prices due to a supply glut saw operators cut back on horizontal drilling in H2 2012. There was a significant decline in the North American directional drilling rig count which had knock on effect for Enteq's equipment.

In Sept 2013 I noted rigs were sitting at c.1,090 & latest figures indicate this rate increasing.



North American Rig Count

Horizontal

1,212 (14/03/14)
1,202 (07/03/14)

1,131 (14/03/14)

With NTQ sitting on 22p cash per share at the interim stage the market is only attributing EV of 15p per share. We know from the H1 statement that they were indicating medium term growth given investment in infrastructure and product development.

Both Investec and finnCap are forecasting consensus 1.1p earnings for the Yr March 2014 and operational gearing kicking in substantially next year with consensus 5.57p EPS.

If the company look on course to achieve anywhere around these figures then the current price is a steal.

I've availed myself of a few.

Regards,
GHF

[rimmy2000] 25/3/2014 10:33

yup, 2 x sells worth £1600 quid. Holding on as its evident this is being reduced to free up liquidity.

[nurdin] 25/3/2014 10:31

Being marked down on small sells...but then I forget NMS is only 500 shares.Had no problems buying 10k at a discount to the prevailing offer price...doh !

[nurdin] 24/3/2014 13:36

I hope the share price finds support soon...

[cockerhoop] 24/3/2014 12:40

Simon,

Had another look at your linked article - at the bottom is a further link which gives data for all the active US rotary rigs. It appears figures for oil are increasing whilst gas is decreasing but in total the rig count is pretty static (09/13 - 1695 onshore rigs, 02/14 - 1714 onshore rigs) which is consistent with the data contained within the NTQ results narrative.

[nurdin] 24/3/2014 12:19

They had 23.5p worth of cash on their balance sheet last september.Cash adjusted pe,assuming the cash has not drained away,comes down to just 3.3x for year about to start...too cheap

[cockerhoop] 23/3/2014 19:21

Simon,

Good find - would I be right in thinking though that the US Gas rigs are a fairly small sub-set(approx 20%) of the addressable US market?

[simon gordon] 22/3/2014 17:01

Came across this gas drilling count link when reading an article on US shale gas:

[marben100] 26/2/2014 12:36

I picked up a few more @ 46.3p. Perhaps others like me seeing support at this level & also buying.

Cheers,

Mark
Twitter @marben100

[rivaldo] 26/2/2014 12:20

From Barclays this morning per FT Alphaville - both rig and well counts up nicely and looking likely to continue improving:

"The recovery in US onshore oil & gas is clearly underway with peer commentary signaling increasing confidence in the outlook for 2014. Our US Oil Services team led by James West, has noted a number of positive data points in recent weeks, highlighted in their recent notes: Pressure Pumping: Inflection Underway and NAM Acceleration. Key observations include:

§ Anecdotal feedback that the largest pumpers have successfully increased spot market pricing in some areas. Pricing pressure and margin erosion has been a central thread of the bear case on Weir. The company has held its margin at a high level (22-23%), despite the pricing pressure on some products – mostly frac pumps and legacy fluids ends. That is likely to impact the margin in H2'13 and we could see that as the floor given this commentary and unwind of excess inventory.

§ Horsepower oversupply has halved from around 20-25% in 2012 to c10-12% currently, and utilisation levels continue to improve.

§ Increasing rig count data – the horizontal rig count in the Permian basin gained over 10% in January, and last week the Baker Hughes rig count increased to 1,771. Drilling permits also rose by 6.4% in January.

§ On well counts, we believe growth of 5-7% in 2014 is the consensus range, consistent with street forecasts for Weir's US upstream Oil & Gas business at this stage. Q4'13's level of 9,056 is over 6% ahead of the trough level of 8,534 in Q1 2013.

§ YTD both WTI and natural gas prices remain well above price decks (natural gas spiked above $6) and E&Ps are increasingly hedging out solid cash flow. The weather impact is hard to assess but likely to have had some negative impact in Q4'13/Q1'14 production, given the severity in some areas, but stable oil prices and the upward inflection in gas prices are both supportive of demand accelerating through the year."

[p1nkfish] 26/2/2014 07:52

if it comes to pass it will clobber economies but benefit NTQ and similar.

hxxp://www.arabianmoney.net/oil-gas/2014/02/25/oil-price-spike-to-140-looms-as-global-demand-now-exceeds-supply/

[skyship] 25/2/2014 10:40

A few people jumping the gun - and why not - I did so last week!

[rivaldo] 25/2/2014 09:17

A couple of ticks up this morning - overhang cleared perhaps.

[pugugly] 24/2/2014 16:06

michaelsadvfn re your 161 Very good point. However he seems to be in nor rush and just trickling the stock out. Worse than watching paint dry - mosre like non climb paint !!!!

[p1nkfish] 20/2/2014 16:41

simon g, yes. And can get tighter still with a rush to replenish storage as well as meet turns demand. Add in increased impetus to replace other energy sources to reduce over all co2 (US beginning to understand problems being caused) and demand will increase still further.

[hastings] 19/2/2014 19:53

Cheers p1nkfish, keeping a close eye.

[p1nkfish] 19/2/2014 12:17

michaelsadvfn, good luck with that. I was buying SPL and have benefited but it's hard to see what catalyst leads to the final flush out of selling. The same may be true here and trying to get in when the final sales go through can be extremely tricky.

Sometimes the final flush is to a volume buyer so putting a limit order in can go unrewarded unless you want 100'sK of shares.

My approach, right or wrong, has been to take a stake where I believe there is value and at least get some of the rise without missing out. Average down if it goes lower. Assuming you are confident there will be a recovery at all.

I think the next set of results will be a catalyst here as the end market improves for at least the 2 reasons above, or more, and the forward look give is positive. Management should be believed here as they have had a decent record to date.

[p1nkfish] 19/2/2014 12:12

hastings, haven't re-listened to this so apologies if it's not one of the sources I referenced as I can't remember where I heard/read it. Link to audio below.

Now - Sept interims referenced $3.60 for Nat Gas as insufficient to renew fracking. Price could well be above that now. Storage has certainly been run down with the weather as it is.

Also, Kerry is in the Far East lecturing on emissions and US/China now co-operating as 2 highest emitters and realising there might be a C02 element to the US weather problems - SW Calif w/o water and the middle/north frozen. China can't live with much negative environmental change as they are already dealing with enough problems already.

This is interesting as one quick way for the US to reduce C02 is displacement of dirtier fuels with Nat Gas. Same economic o/p (or higher) but at reduced C02 else they take an economic hit.

Listen to oil & Gas section: hxxp://talkdigitalnetwork.com/2014/02/this-week-in-money-123/

[michaelsadvfn] 19/2/2014 09:51

PUGUGLY 22 Jan'14 - 10:16 - 151 of 160 0 0

Looks as though the institution is still selling down but not much buying interest now from PI's - The IC tip appears to be loosing momentum -

If PI buying interest ceases no support - I wonder how Much pressure to unload and where the support level could be .

thoughts ?

Yep, I have thoughts.
Firstly I've been watching this from the sidelines. Very interesting.
You need to watch this like a hawk for signs the seller is finished. Yes, that might sound obvious but the same just happened over at SPL in the last few days. Take a look at the recent movement there.
I thought the seller was out at 80p yet the last of the institution's stock got taken at 50p, only to be sold the next day by the buyer at a 60% premium. Nice work if you can get it.
Large end of day trades are what to look out for. If I see that I'll be in.

[hastings] 19/2/2014 09:36

Hi P1nfish, think you may be correct with that view. Looks like smaller players will become active within shale area in the coming years.Which should bode well for players such as Enteq.http://mobile.bloomberg.com/news/2014-01-15/u-s-will-be-energy-self-sufficient-by-2035-on-shale-bp-says.html

[p1nkfish] 19/2/2014 09:08

From what I heard over the weekend NG supply is tighter in the US than thought and prices rising. This is due to the bad winter and is resulting in re-start in some fracking areas. Storage areas have been depleted. The result is very likely to be increased business at the eqpt supply end.

I think the market may have turned.

[hastings] 18/2/2014 14:24

Some thoughts