Secure Energy Services: Strong Q4 Performance and Positive Outlook Justify Buy Rating

BMO Capital analyst John Gibson CFA reiterated a Buy rating on Secure Energy Services (SES – Research Report) on February 21 and set a price target of C$20.00.

John Gibson CFA has given his Buy rating due to a combination of factors, primarily highlighting Secure Energy Services’ (SES) robust financial performance in Q4/24. The company delivered solid results with an adjusted EBITDA of $117 million, closely aligning with market expectations. Its strong discretionary free cash flow of $80 million further supports this positive outlook.
Additionally, SES has reaffirmed its 2025 guidance, projecting an increase in adjusted EBITDA and discretionary free cash flow, underpinned by expected production volume growth and recent pricing strategies. The company’s commitment to shareholder returns through aggressive share buybacks enhances its investment appeal. Moreover, SES’s consistent performance relative to its peers suggests potential for further valuation expansion, reinforcing the Buy recommendation.

SES’s price has also changed moderately for the past six months – from C$11.840 to C$14.310, which is a 20.86% increase.