Quintana Energy Services (QES) has seen some real struggles to become a public company as the business had to postpone its offering a day and it cut the offer price in a big way. This came even after a failed attempt to go public in the summer of last year.
The company is hard to ¨read¨ as it made a lot of deals during the industry downturn, which makes it hard to gauge how organic sales have performed and what margins can look like. That being said, the net cash position following the offering, current breakeven results and very low sales multiples create relative appeal. This warrants a small speculative position as uncertainty regarding the true underlying business make me cautious to initiate a substantial position.
An Acquisition Product
Quintana was founded in 2006 and is a product of various acquisitions being made in the oilfield service industry. The company has expanded into drilling, cementing, and pressure pumping in an acquisition spree which has created quite a…