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Enterprise Group, Inc. (TSX:E) (the “Company” or “Enterprise“) is a consolidator of services to the energy sector, focused primarily on specialized equipment rental.
Enterprise is set up to participate and lead in the current Capex spending boon being facilitated by its clients.
Take a video moment to get up to speed on Enterprise.
Tier ones (A large part of Enterprises’ client base) are aggressively raising spending. Imperial Oil (TSX:IMO), Cenovus (TSX:CVE), Suncor (TSX:SU), ConocoPhillips (NYSE:COP) sharply raises Capex to $7.2 billion, and Chevron boosts spending 20 percent to US$15 billion.
For years, Wall Street has pressured oil and gas companies to cut CAPEX and shift their cash to financial goals like boosting dividends and buybacks, paying down debt, and decarbonization after the fracking revolution left the U.S. shale patch bleeding money and deeply indebted.
Ready, Steady…
What is unique to this O&G up-leg is the amount of money and technology spent markedly reducing carbon emissions and greenhouse gases. Besides an initial drop in emissions, clients transitioning to Natural gas-powered generators and equipment will drastically lower the ugly diesel fueling costs they ate each year allowing O&G companies to satisfy Government mandates with manageable pain.
– Enterprise has recently invested in electrification grid technology fueled by natural gas power generation, with systems deployed for top-tier Canadian Producers.
– The emissions and cost reductions are significant for our customers’ transitioning from diesel fuel sources to cleaner alternatives, with support and strong interest to expand upon that technology.
– Investment in technology, research, and development, combined with a widespread commitment to environmental sustainability that will allow Canadian producers to maintain their international leadership role in the energy transition.
As current production development Capex levels in the Canadian O&G sector significantly increase and look to continue, Enterprise is prepared and well-positioned to benefit from that growth.
Leonard Jaroszuk, Enterprise President & CEO, states, “Our customers are doing the right thing, and we need to offer every advantage we can to support their socially-responsible goals.“
As current production development Capex levels in the Canadian O&G sector significantly increase and look to continue, Enterprise is prepared and well-positioned to benefit from that growth.
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