North Amern Energy Partners (NYSE:NOA)
CAPS Rating:
A resource services provider to oil and natural gas and other natural resource companies, with a primary focus in the Canadian oil sands.
Think Outside the Street
A resource services provider to oil and natural gas and other natural resource companies, with a primary focus in the Canadian oil sands.
BATS data provided in real-time. NYSE, NASDAQ and AMEX data delayed 15 minutes.
Real-Time prices provided by BATS. Market data provided by Interactive Data.
Company fundamental data provided by Morningstar. Earnings Estimates and Analyst Ratings provided by Zacks.
SEC Filings and Insider Transactions provided by Edgar Online.
Powered and implemented by Interactive Data Managed Solutions. Terms & Conditions
RSS Headlines
Fool UK
Recs
Incorporated in 2003 and headquartered in Acheson, Canada, North American Energy Partners provides a range of mining and site preparation, piling and pipeline installation services for oil and natural gas and other natural resource companies.
The outlook for the natural gas industry of Western Canada is positive as its industrial consumption is projected to rise significantly in the coming years. As per the findings of Energy Information Administration (EIA), Canada, presently the source of almost 90 percent of U.S. net natural gas imports would remain the prime source of natural gas imported into the United States until 2010.
Western Canadian Sedimentary Basin is the major gas producing area in Canada, with about 80% of gas production coming from Alberta. The prospects of the company appear good, as its operations are heavily concentrated in Alberta oil Sands. The third quarter performance of the company was also remarkable with over 28% glide in the revenues. Company’s mining and site preparation as well as piling segment performed well due to the ramp up of 10-year CNRL contract along with extensive operations in Alberta and British Columbia. Also, the company has recently bagged a five-year construction contract from one of its major customers ‘Suncor’ that could boost its piling segment that now constitutes about 19% of the turnover.
One of the concerns for the company was the pipeline division that reported an operating loss due to unsupportive weather and operational concerns. However, the company has lately reached the final stage of negotiations with Kinder Morgan, one of the largest energy transportation companies, which could lessen their challenges for the pipeline segment, given the risk mitigation strategies. Additionally, proceeds from the IPO have been used to retire over 23% of their debt, which could aid the bottom lines in the future. Looking ahead, management expects to pass on part of the surging equipment costs led by higher tire outlay through increased pricing in the coming years. Given, these factors, the company does exhibit optimism at the current price levels.