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Demand for our services and products depends primarily upon the general level of activity in the oil and gas industry, including the number of active drilling rigs, the number of wells drilled, the depth and working pressure of these wells, the number of well completions, the level of well remediation activity, the volume of production and the corresponding capital spending by oil and natural g…
The business is unprofitable at the operating level (-1.41% margin). The thesis depends entirely on whether and when it reaches sustainable profitability.
Revenue grew 3.4%, steady but not accelerating. Margins contracted 3.6pp, which offsets some of the top-line progress.
ROIC dropped from 1.95% to -1.05%, capital efficiency is deteriorating. Negative free cash flow of -$224K. The business is consuming cash, not generating it.
Profitability & Returns
Revenue (TTM)
$156M
▲ +3.4% YoY
Net Income (TTM)
-$4M
▼ -224.8% YoY
Op. Margin
-4.72%
▼ -3.6pp YoY
ROIC
-3.45%
▼ -3.0pp YoY
Cash Flow & Balance Sheet
FCF (TTM)
-$8M
▲ +98.7% YoY
Op. Cash Flow (TTM)
$14M
▲ +228.9% YoY
Net Debt
$41M
Cash & Equiv.
$3M
3Y CAGR: +7.3%
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