Secure Energy Services Inc
TSX:SES
Secure Energy Services Inc
Secure Energy Services Inc. operates within the intricate world of midstream and environmental solutions in the oil and gas industry, carving out a distinct niche by mingling traditional services with innovative environmental stewardship. Born out of the pressing need to manage the by-products of energy production sustainably, Secure Energy offers a suite of services that includes oilfield waste management, recycling, and water treatment solutions, all essential for modern energy companies seeking to reduce their environmental footprint. The company’s business model hinges on providing comprehensive and compliant solutions for the treatment and disposal of waste materials, enabling its clients to focus on extracting energy while Secure handles the rest. This approach not only mitigates environmental impact but also helps companies meet increasingly stringent regulatory requirements.
While adapting to the shifting energy landscape, Secure Energy Services has cultivated a dual-stream revenue model anchored in both its core environmental services and essential midstream processing infrastructure. The company operates an extensive network of facilities strategically located to optimize the logistics of gathering, processing, and transporting oilfield waste and crude oil. By offering integrated midstream services, including oil processing, recovery, and marketing, Secure Energy capitalizes on efficiencies and economies of scale that enhance profitability. These facilities enable the recovery and resale of valuable hydrocarbons, effectively turning waste into a revenue stream while optimizing returns for the company and its clients. As the energy sector continues to evolve, Secure Energy stands poised at the intersection of necessity and innovation, providing critical solutions that support sustainable development in a resource-heavy industry.
Secure Energy Services Inc. operates within the intricate world of midstream and environmental solutions in the oil and gas industry, carving out a distinct niche by mingling traditional services with innovative environmental stewardship. Born out of the pressing need to manage the by-products of energy production sustainably, Secure Energy offers a suite of services that includes oilfield waste management, recycling, and water treatment solutions, all essential for modern energy companies seeking to reduce their environmental footprint. The company’s business model hinges on providing comprehensive and compliant solutions for the treatment and disposal of waste materials, enabling its clients to focus on extracting energy while Secure handles the rest. This approach not only mitigates environmental impact but also helps companies meet increasingly stringent regulatory requirements.
While adapting to the shifting energy landscape, Secure Energy Services has cultivated a dual-stream revenue model anchored in both its core environmental services and essential midstream processing infrastructure. The company operates an extensive network of facilities strategically located to optimize the logistics of gathering, processing, and transporting oilfield waste and crude oil. By offering integrated midstream services, including oil processing, recovery, and marketing, Secure Energy capitalizes on efficiencies and economies of scale that enhance profitability. These facilities enable the recovery and resale of valuable hydrocarbons, effectively turning waste into a revenue stream while optimizing returns for the company and its clients. As the energy sector continues to evolve, Secure Energy stands poised at the intersection of necessity and innovation, providing critical solutions that support sustainable development in a resource-heavy industry.
EBITDA Guidance Cut: 2025 adjusted EBITDA guidance was lowered to approximately $500 million, mainly due to weaker metals recycling and lower drilling activity, but still represents 5% growth over 2024.
Q3 Profitability: Adjusted EBITDA for Q3 was $135 million, up 6% year-over-year; underlying profitability stayed stable despite a sharp drop in net income from a noncash provision.
Metals Recycling Headwinds: The metals business faced continued weakness from Canadian steel tariffs and oversupply, leading to a strategic pivot to U.S. markets; full benefit expected in 2026.
Volume Pressures: Produced water, processing, and landfill volumes all fell quarter-over-quarter, driven by lower drilling, planned maintenance, and project deferrals.
Shareholder Returns: $335 million returned to shareholders year-to-date through dividends and buybacks, with outstanding shares down 8%.
Strong Cash Flow & Balance Sheet: The company highlights stable cash flow, a leverage ratio of 2.1x, and over $300 million in liquidity.
Infrastructure Growth: Major long-cycle, contract-backed projects remain on track, with new facilities expected online late 2025 and early 2026 to underpin future growth.
2026 Outlook: Management expects stronger momentum in 2026 as new infrastructure ramps up and metal recycling logistics are optimized.
