Source Energy Services Ltd
TSX:SHLE
Source Energy Services Ltd
Source Energy Services Ltd. engages in the production, supply, and distribution of northern white frac sand. The company is headquartered in Calgary, Alberta and currently employs 351 full-time employees. The company went IPO on 2017-04-13. The firm's services include Proppants, Logistics, Terminals, Chemicals and Field Solutions. The company offers a range of proppant sizes of 20/40, 30/50, 40/70 and 100 mesh for specific well requirements. The company offers last mile logistic solutions, including trucking delivery directly to the wellsite and Sahara proppant storage units. The company owns and operates in-basin terminals in the WCSB. Its terminals are unit-train capable that can hold up to 100 cars on the track. The company also provides storage and logistics services for other bulk oil and gas well completion materials and has developed Sahara, a wellsite mobile sand storage and handling system. Its terminals in Red Deer and Grande Prairie, Alberta are equipped with chemical storage. The firm provides its customers with an end-to-end solution for frac sand.
Source Energy Services Ltd. engages in the production, supply, and distribution of northern white frac sand. The company is headquartered in Calgary, Alberta and currently employs 351 full-time employees. The company went IPO on 2017-04-13. The firm's services include Proppants, Logistics, Terminals, Chemicals and Field Solutions. The company offers a range of proppant sizes of 20/40, 30/50, 40/70 and 100 mesh for specific well requirements. The company offers last mile logistic solutions, including trucking delivery directly to the wellsite and Sahara proppant storage units. The company owns and operates in-basin terminals in the WCSB. Its terminals are unit-train capable that can hold up to 100 cars on the track. The company also provides storage and logistics services for other bulk oil and gas well completion materials and has developed Sahara, a wellsite mobile sand storage and handling system. Its terminals in Red Deer and Grande Prairie, Alberta are equipped with chemical storage. The firm provides its customers with an end-to-end solution for frac sand.
Volume Drop: Sand sales volumes in Q3 2025 were 665,000 tonnes, down 31% from last year due to delayed completions stemming from weak commodity prices and economic uncertainty.
Revenue Impact: Sand revenue fell by $42 million, but average realized price per tonne increased by $3.15 due to terminal mix shifts.
Rebound Expected: Management expects a strong Q4 rebound and full-year 2025 sand volumes to be flat or slightly up versus 2024, with growth likely continuing into 2026.
CapEx Guidance: 2025 capital expenditures are expected in the $45–50 million range, with 2026 plans not yet finalized.
Shareholder Returns: The company reduced debt by $11.7 million in Q3 and began share repurchases, buying back 167,500 shares during the quarter.
