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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 Energy Services' recent performance was driven by a 56% year-over-year increase in Q4 2025 net income, accompanied by a 15% dividend hike, indicating robust financial health. The company's renewal of its normal course issuer bid, allowing the repurchase of up to 19,367,434 common shares, signals confidence in its stock value and commitment to enhancing shareholder returns. CIBC Capital Markets' maintained neutral rating and C$20.00 price target ahead of Q1 results reflect a stable outlook. These developments underscore the company's solid operational and financial standing.

1.c. Company Highlights

2. SECURE Waste Infrastructure Corp. Delivers Strong 2025 Results with 5% Adjusted EBITDA Growth

SECURE Waste Infrastructure Corp.'s financial performance in 2025 was marked by a 5% year-over-year growth in adjusted EBITDA to $501 million on a pro forma basis. In Q4, adjusted EBITDA was $135 million, representing a 15% year-over-year increase and 24% growth on a per-share basis. The company's earnings per share (EPS) came in at $0.2341, below analyst estimates of $0.2935. The company returned $373 million to shareholders through dividends and share buybacks, repurchasing nearly 19 million shares at an average price below $15.

Publication Date: Mar -08

📋 Highlights
  • Full-Year Adjusted EBITDA Growth: Achieved $501 million, reflecting 5% year-over-year growth, driven by waste management and energy infrastructure resilience.
  • Q4 EBITDA Surge: Delivered $135 million in adjusted EBITDA, a 15% annual increase, with 24% per-share growth, highlighting operational momentum.
  • Shareholder Returns: Returned $373 million through dividends and share repurchases, including 19 million shares repurchased at an average price under $15.
  • 2026 EBITDA Guidance: Targets $520–$550 million, supported by contracted projects and infrastructure expansions, with $75 million allocated for organic growth CapEx.
  • Metals Business Impact: EBITDA declined 10–15% due to Canadian market disruptions, but inventory normalization efforts are expected to restore balance by mid-2026.

Operational Highlights

The company disposed of approximately 95,000 barrels per day of produced water, processed 38,000 barrels per day of liquid waste, and safely disposed of 3.2 million tons of solid waste in 2025. The waste management business saw significant investments in LNG projects, petrochemical industry expansions, and energy demand growth, driven by a 2% annual growth in Western Canadian energy production through 2030.

Guidance and Capital Allocation

For 2026, SECURE Waste Infrastructure Corp. provided adjusted EBITDA guidance of $520 million to $550 million, supported by contracted projects and infrastructure-backed cash flows. The company plans to invest $75 million in organic growth projects, with a focus on waste management business expansions, particularly in the Montney region. The dividend is expected to grow by 5% to $0.42 per share annualized, beginning with the second quarter of 2026.

Valuation and Metrics

With a P/E Ratio of 35.11 and EV/EBITDA of 11.24, the company's valuation metrics suggest a premium for its growth prospects. The Dividend Yield stands at 2.07%, providing a relatively stable return for investors. The company's ROIC of 10.27% and ROE of 14.65% indicate a strong ability to generate returns on capital and equity. The Net Debt / EBITDA ratio of 2.37 suggests a manageable debt burden.

Business Segment Performance

The metals recycling business faced challenges in 2025 due to Canadian market disruption, resulting in a 10-15% decline in EBITDA. However, investments in railcars and logistics helped normalize inventory levels, and the company expects to return to normal inventory turns by the midpoint of 2026. The Specialty Chemicals business continued to grow, driven by increased production in paraffins and wax.

Outlook and Risks

The company's guidance assumes a slow improvement in activity levels if crude prices remain around $60-65 WTI. The metals recycling business is working through inventory built up in 2025, and the company is well-positioned to ship to both Canadian and US mills. A potential rollback of tariffs could be a tailwind for the business, although this is difficult to predict.

3. NewsRoom

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A Look At SECURE Waste Infrastructure (TSX:SES) Valuation After Its Recent Rebrand And Strong Shareholder Returns

Feb -24

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Secure Energy Services Q4 Earnings Call Highlights

Feb -24

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CIBC Confirms Neutral Rating on Secure Waste Infrastructure and Raises Target to $22.5 on Q4 Results

Feb -23

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Secure Waste Infrastructure Corp (SECYF) Q4 2025 Earnings Call Highlights: Strong Revenue ...

Feb -20

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Secure Energy Services Books 56% YoY Increase in Q4 2025 Net Income, Hikes Dividend

Feb -20

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Secure Waste Infrastructure Maintained at Neutral at CIBC Ahead of Q1 Results; Price Target Kept at C$20.00

Feb -17

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SECURE ANNOUNCES RENEWAL OF NORMAL COURSE ISSUER BID

Dec -15

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SECURE ANNOUNCES CLOSING OF $300 MILLION SENIOR UNSECURED NOTE FINANCING

Nov -20

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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: 7.4/10

Value: 8.4

Growth: 9.2

Quality: 6.1

Yield: 10.0

Momentum: 4.5

Volatility: 6.3

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Mueller Industries

A-Score: 6.4/10

Value: 4.3

Growth: 7.1

Quality: 7.9

Yield: 2.0

Momentum: 9.0

Volatility: 8.0

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Golden Ocean

A-Score: 5.5/10

Value: 6.8

Growth: 3.3

Quality: 5.2

Yield: 8.0

Momentum: 3.5

Volatility: 6.3

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Secure Energy Services

A-Score: 5.4/10

Value: 3.8

Growth: 8.3

Quality: 3.5

Yield: 2.0

Momentum: 8.0

Volatility: 6.7

1-Year Total Return ->

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Clean Harbors

A-Score: 4.9/10

Value: 3.0

Growth: 7.6

Quality: 6.6

Yield: 0.0

Momentum: 4.0

Volatility: 8.3

1-Year Total Return ->

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Casella Waste Systems

A-Score: 3.9/10

Value: 3.1

Growth: 5.6

Quality: 4.0

Yield: 0.0

Momentum: 3.0

Volatility: 8.0

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

20.18$

Current Price

20.18$

Potential

-0.00%

Expected Cash-Flows