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1. Company Snapshot

1.a. Company Description

Secure Energy Services Inc., an energy services company, provides solutions to upstream oil and natural gas companies operating primarily in Western Canadian Sedimentary Basin and the United States.It operates through two segments, Midstream Infrastructure, and Environmental and Fluid Management.The company's Midstream Infrastructure segment provides services, such as clean oil terminalling, rail transloading, pipeline transportation, marketing and custom treating of crude oil, produced and waste water disposal, oilfield waste processing, and purchase/resale of oil services through its full service terminals, rail facilities, crude oil pipelines, crude oil terminalling facilities, water disposal facilities, and landfills.


The Environmental and Fluid Management segment includes a network of owned, operated, and marketed industrial landfills, hazardous and non-hazardous waste management and disposal, onsite abandonment, and environmental solutions for site remediation and reclamation, bio-remediation, water treatment and recycling, emergency response, rail, and metal recycling services, as well as offers fluid management for drilling, completion, and production operations for oil and gas producers.This segment also designs and implements drilling fluid systems for producers drilling for oil, bitumen, and natural gas; provides naturally occurring radioactive material management services, as well as equipment and chemical solutions that optimize well production.Secure Energy Services Inc.


is headquartered in Calgary, Canada.

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1.b. Last Insights on SES

Secure Waste Infrastructure Corp.'s recent performance was positively driven by its Q2 revenue beat, despite an EPS miss. The company maintains its FY25 adjusted EBITDA guidance, indicating a stable outlook. Additionally, Secure released its 2024 Sustainability Report, highlighting progress toward ESG goals. A dividend of CA$0.10 per share was announced, demonstrating a commitment to shareholder returns. The company's focus on transforming waste into value is reinforced by its sustainability efforts. A share sale by TPG Angelo Gordon may impact investor sentiment.

1.c. Company Highlights

2. SECURE Waste Infrastructure Corp. Delivers Solid Q3 2025 Results Amidst Challenging Environment

SECURE Waste Infrastructure Corp. reported revenue of $365 million for Q3 2025, down 2% year-over-year, primarily due to lower specialty chemical sales and volumes tied to reduced drilling and completions. Adjusted EBITDA was $135 million, up 6% from the prior year. The company's EPS came in at $0.1368, below analyst estimates of $0.23. Adjusted EBITDA margins were strong in the quarter, driven by lower G&A expenses, as Chad Magus mentioned, "Our adjusted EBITDA margins were strong in the quarter... While we expect margins to be in the mid-30s going forward, it will be variable quarter-over-quarter."

Publication Date: Nov -18

📋 Highlights
  • Adjusted EBITDA Growth:: Q3 2025 adjusted EBITDA reached $135 million, reflecting a 6% year-over-year increase or 17% growth on a per-share basis.
  • 2025 Guidance Revision:: Full-year adjusted EBITDA guidance revised to ~$500 million, a 2% reduction from the prior low-end range but still representing ~5% growth over 2024 pro forma levels.
  • Operational Performance:: Waste processing facilities averaged 91,000 barrels/day of produced water and 36,000 barrels/day of slurry, while recovering 220,000 barrels of oil from waste streams.
  • Rig Count Impact:: A 15% quarter-over-quarter decline in rig count reduced drilling/completion activity, contributing to a 12% revenue drop in the Specialty Chemicals segment.
  • Metals Business Contribution:: Metals segment accounts for ~10% of EBITDA guidance ($50 million), with logistics challenges (21–45-day transit times) and ongoing optimization efforts.

Financial Performance

The company's financial performance was impacted by the delayed ferrous metal sales and the weaker macro environment. SECURE revised its 2025 adjusted EBITDA guidance to approximately $500 million, reflecting a 2% reduction from the low end of its prior range. The decrease also reflects the decision not to proceed with a small acquisition originally anticipated to contribute roughly $6 million of EBITDA this year.

Operational Highlights

Operationally, SECURE's team executed well throughout the quarter, maintaining high reliability and safety performance across its network. The company's waste processing facilities safely processed on average 91,000 barrels per day of produced water and 36,000 barrels per day of slurry and emulsion. SECURE also recovered 220,000 barrels of oil from waste streams, reinforcing the value it creates.

Outlook and Valuation

SECURE expects to provide 2026 adjusted EBITDA guidance and capital investment guidance in February 2026. Analysts estimate revenue growth of 4.6% for next year. With a P/E Ratio of 20.25 and an EV/EBITDA of 11.13, the market is pricing in a certain level of growth. The company's ROE is 20.28%, and ROIC is 12.78%, indicating a strong return on equity and invested capital. The dividend yield is 2.25%, providing a relatively stable income stream.

Segment Performance

The Specialty Chemicals business was impacted by the decline in drilling and completion activity, with revenue down significantly more than the 12% decline in revenue. The Energy Infrastructure segment saw a decline in mature areas partly due to decline curves on producing wells, but the Nipisi business is contributing to offset this decline.

3. NewsRoom

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SECURE ANNOUNCES CLOSING OF $300 MILLION SENIOR UNSECURED NOTE FINANCING

Nov -20

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SECURE ANNOUNCES $300 MILLION SENIOR UNSECURED NOTE FINANCING

Nov -14

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Insider Spends CA$497k Buying More Shares In SECURE Waste Infrastructure

Nov -07

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Energy & Utilities Roundup: Market Talk

Oct -30

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SECURE Waste Infrastructure Corp.'s (TSE:SES) 8.4% loss last week hit both individual investors who own 53% as well as institutions

Oct -16

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Early Warning News Release Disposition of Secure Waste Infrastructure Corp. Common Shares by Angelo, Gordon & CO., L.P.

Oct -07

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SECURE Waste Infrastructure (TSE:SES) Will Pay A Dividend Of CA$0.10

Sep -19

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Is SECURE Waste Infrastructure Corp.'s (TSE:SES) 24% ROE Better Than Average?

Aug -14

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4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (6.12%)

6. Segments

Energy Infrastructure

Expected Growth: 5.83%

Secure Energy Services Inc.'s 5.83% growth in Energy Infrastructure is driven by increasing demand for oil and gas production, expansion of existing facilities, and strategic acquisitions. Additionally, growing focus on environmental sustainability and emission reduction is boosting demand for energy infrastructure services, contributing to the segment's growth.

Environmental Waste Management

Expected Growth: 8.5%

Secure Energy Services Inc.'s Environmental Waste Management segment growth of 8.5% is driven by increasing oil and gas production, stringent environmental regulations, and growing demand for sustainable waste disposal practices. Additionally, the company's strategic acquisitions and expansion into new markets have contributed to its growth momentum.

Oilfield Services

Expected Growth: 4.83%

Secure Energy Services Inc.'s 4.83% growth in Oilfield Services is driven by increasing demand for drilling and completion activities, improved operational efficiency, and strategic acquisitions. Additionally, growing production in North America, particularly in the Permian Basin, and rising oil prices contribute to the segment's growth.

7. Detailed Products

Drilling Services

Secure Energy Services Inc. provides drilling services to oil and gas companies, including drilling waste management, solids control, and drilling fluids.

On Site Services

Secure Energy Services Inc. offers on-site services, including tank cleaning, pipeline cleaning, and facility decommissioning, to help oil and gas companies maintain their facilities and infrastructure.

Processing, Recovery and Disposal (PRD) Services

Secure Energy Services Inc. provides PRD services, including oil treatment, water treatment, and waste disposal, to help oil and gas companies manage their production and waste streams.

Environmental Services

Secure Energy Services Inc. offers environmental services, including remediation, reclamation, and monitoring, to help oil and gas companies manage their environmental impact.

Oilfield Waste Management

Secure Energy Services Inc. provides oilfield waste management services, including waste collection, transportation, and disposal, to help oil and gas companies manage their waste streams.

8. Secure Energy Services Inc.'s Porter Forces

Forces Ranking

Threat Of Substitutes

Secure Energy Services Inc. operates in a niche market with limited substitutes, but the threat of substitutes is still present due to the increasing adoption of renewable energy sources.

Bargaining Power Of Customers

Secure Energy Services Inc. has a diverse customer base, which reduces the bargaining power of individual customers. Additionally, the company's services are critical to its customers' operations, making it difficult for customers to negotiate prices.

Bargaining Power Of Suppliers

Secure Energy Services Inc. relies on a few key suppliers for its equipment and materials. While the company has some bargaining power due to its size, suppliers still have some leverage due to the specialized nature of the equipment and materials.

Threat Of New Entrants

The oil and gas industry has high barriers to entry, including significant capital requirements and regulatory hurdles. This makes it difficult for new entrants to enter the market and compete with established players like Secure Energy Services Inc.

Intensity Of Rivalry

The oil and gas industry is highly competitive, with many established players competing for market share. Secure Energy Services Inc. faces intense competition from other energy services companies, which can lead to pricing pressure and reduced margins.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 48.16%
Debt Cost 9.81%
Equity Weight 51.84%
Equity Cost 16.65%
WACC 13.35%
Leverage 92.92%

11. Quality Control: Secure Energy Services Inc. passed 6 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Stock-Card
Hafnia

A-Score: 7.6/10

Value: 7.9

Growth: 9.3

Quality: 6.9

Yield: 10.0

Momentum: 6.0

Volatility: 5.7

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Mueller Industries

A-Score: 6.3/10

Value: 4.5

Growth: 7.1

Quality: 7.9

Yield: 2.0

Momentum: 8.5

Volatility: 8.0

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Secure Energy Services

A-Score: 5.8/10

Value: 4.9

Growth: 8.4

Quality: 4.2

Yield: 2.0

Momentum: 8.5

Volatility: 6.7

1-Year Total Return ->

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Golden Ocean

A-Score: 5.3/10

Value: 6.7

Growth: 3.3

Quality: 5.0

Yield: 10.0

Momentum: 1.0

Volatility: 5.7

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Clean Harbors

A-Score: 4.9/10

Value: 3.8

Growth: 7.6

Quality: 6.6

Yield: 0.0

Momentum: 3.0

Volatility: 8.3

1-Year Total Return ->

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Casella Waste Systems

A-Score: 4.0/10

Value: 1.8

Growth: 5.7

Quality: 5.2

Yield: 0.0

Momentum: 3.0

Volatility: 8.3

1-Year Total Return ->

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Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

17.74$

Current Price

17.74$

Potential

-0.00%

Expected Cash-Flows