As the second part of my post about Canadian stocks I have been adding to recently I want to discuss 3 oil related businesses, Entrec Corporation (ENT.v), Palliser Oil and Gas (PXL.v) and Tesla Exploration (TXL.to)
Entrec Corp (ENT.v)
Another company of which I took a position in the last week is Entrec. Entrec provides oversized hauling, crane services and rigging services in Northern Alberta and the British Columbia. The company was a part of Flint Services until April 2011 when they sold the business to EIS Capital. At the same time EIS acquired a whole bunch of oilfield and transportation services companies (see the 2011 news releases for the past list) amalgamated the companies with Entrec and renamed the consolidated entity to Entrec.
Entrec has been on an acquisition spree since that time. It looks like they’ve acquired 10 different companies, most of which are small, trucking and hauling entities. According to Canaccord (a report which I googled and is available here ) Entrec’s acquisitions between July 2011 and the end of December have averaged 3.44x EBITDA. The latest, GT Crane and Transportation Services, was acquired for 3.5x EBITDA. Read more