Enterprise Group Inc.

lockPrivate Group

Enterprise Group has maintained a strong vision to be the largest construction services and specialized equipment rental organization in Western Canada. With development activity in the energy services and civil construction sector expected to increase as the economy strengthens, the Enterprise G...

people47 Members       (0)

Corporate Profile
Group Admins:
  • Thumb 8020 monitor 200 200  png
  • Thumb desmond
  • Thumb no photo
Request Membership


Enterprise Group Inc.

lockPrivateGroup

Enterprise Group has maintained a strong vision to be the largest construction services and specialized equipment ren......

people47 Members       (0)

Thumb 8020 media relations

Media Relations posted an update inENTERPRISE GROUP INC.

1 month

Enterprise Group (TSX: $E. TO) Don't Freeze LNG out of your Portfolio By: Motion Communications

insert_drive_fileDon_t_Freeze_LNG.pdf

!

Management is superb. Trades at more than 1/2 breakup. Sector in the biffy. Doubled from Jan to April 2018. Sector weakened. Once LNG comes online, I think you'll be pleasantly surprised.keyboard_arrow_downShow Post

!
Thumb 8020 monitor 200 200  png

8020 Admin

3 months

8020 Admin  posted an update in ENTERPRISE GROUP INC.

 

How does one generate significant heat with no flame? And once done, what do you do with it? And of course, why?

Artic Therm is the largest proprietary supplier of flameless heat in Canada. And with this winter already starting (early) in the north, the all sizes of flameless heater rental units are moving out the door.

Thermal fluid heating is a type of indirect heating in which a liquid phase heat transfer medium is heated and circulated to one or more heat energy users within a closed loop system. Thermal oil, glycol, and water are common heat transfer mediums for these systems.

The units represent two Enterprise patents; one for the disc and one for the airflow design. The disc agitates the oil and creates 60% of generated heat. The rest is drawn from the operation of the diesel engine and exhaust piping within the unit.

The safety features include:

- Positive Air Shutdown (manual and automatic); set to shut down on engine RPM over-speed,

- Murphy gauges and switches for high temperature or low pressure shutdown on both engine and friction plate,

- Brushless Marine Alternators to ensure there is no source of ignition during operation. Our units are authorized to be in operation up to 7 meters to the wellhead.

Our units are authorized to be in operation up to 7 meters to the wellhead.

Oil and Gas, etc.

1. Pipeline expansion; pre-heat and expand pipe during construction

2.Tank and pipeline drying; dries

3. Curing Coatings; faster heal according to spec to ensure max strength

4. Facility maintenance; building project temp control

5. Well sites; prevent freezing of the wellhead.

- Plant outages/turnarounds

- Grain Drying

- Emergency thawing (or chilling)

- Portable climate control

- Portable cooling solutions

Flameless heat is not merely some fad or a way to speed up heating for convenience reasons. The application can make the difference between a saleable silo of seed as opposed to pretty worthless feed. Also, faster pipe and vessel curing increases the hardening of the materials, markedly lengthening pipe life.

Speaking of which, and with no agenda other than it would good for many companies including Enterprise; lots of pipelines will be built over the next several years. The expertise necessary such as flameless heat, pipeline extension, and curing will be the basis for new technologies. Will it make pipelines 100% safe? They will be safer.

It’s all Happening.

By May 2018, six more pipeline projects were approved. Total investment will be more than C$2 billion. While small, the LNG and Trans Canada Pipeline watusi will likely raise that by ‘billions and billions. (Carl Sagan) Four of the six:

- Located in British Columbia’s Peace River Regional District, the North Montney Mainline (NMML). Consists of a 206 kilometer (km), 42-inch pipeline, two compressor stations, and 14-meter stations. Construction has begun. (Through TransCanada’s subsidiary Nova Gas).

- In February Pembina Pipeline Corporation announced it would spend $120 million on the construction of new fractionation and terminalling facilities at its Empress extraction plant, located north of Medicine Hat.

- In May, MEG Energy disclosed that work is underway on a new expansion of its Christina Lake in situ oil sands project in northern Alberta.

- Keyera Corp. said in May that it is proceeding with phase two of its Wapiti Gas Plant near Grande Prairie, Alta., in the liquids-rich Montney play.

Additional processing capacity will also be added to Keyera Corp.'s Simonette gas plant, near Grande Prairie. The company says the facility continues to achieve record processing volumes.

With world energy needs projecting to increase by 45% by 2040, Canada's LNG plans seem an easier sell than oil, oils sands, etc.; although many of those will be approved. Burns clean and is a great partner to supplement Green tech for consistent clean electricity generation.

As Alberta and BC are one, two in Natural Gas production, companies such as Enterprise (and subsidiary Arctic Therm) are at the thin edge of the wedge for infrastructure building tech. Couple that with competitive and first-class rental equipment, it is hard not to extrapolate decent growth for services over the next decade(s). Add in agricultural demands for drying and other applications and flameless heat will become ubiquitous very quickly.

Another major caveat is the US’s current tariff plan. The effect ongoing will favor renting over buying major equipment pieces.

The top 10 source countries for U.S. steel imports represented 79 percent of the total steel import volume in YTD 2018 at 12.7 million metrics tons (mmt). Canada accounted for the largest share of U.S. imports by source country at 20 percent (3.3 mmt).

Canadian companies such as Enterprise have the equipment to not only survive but thrive, due to its strategies and top shelf and innovative/custom rentals.

The Company can really no longer be viewed merely as a supplier. It is now more of a resource; With exceptional growth potential.

Oh, almost forgot. Our beer cans are affected. That’s just wrong.

Disclaimer: Nothing in this article should be considered as personalized financial advice. We are not licensed under securities laws to address your particular financial situation. No communication by our employees to you should be deemed as personalized financial advice. Please consult a licensed financial advisor before making any investment decision. This is a paid advertisement and is neither an offer nor recommendation to buy or sell any security. We hold no investment licenses and are thus neither licensed nor qualified to provide investment advice. The content in this article is not provided to any individual with a view toward their individual circumstances. Baystreet.ca has been paid a fee of one thousand eight hundred dollars for Enterprise Group advertising. This compensation constitutes a conflict of interest as to our ability to remain objective in our communication regarding the profiled company. Because of this conflict, individuals are strongly encouraged to not use this article as the basis for any investment decision. While all information is believed to be reliable, it is not guaranteed by us to be accurate. Individuals should assume that all information contained in this article is not trustworthy unless verified by their own independent research. Also, because events and circumstances frequently do not occur as expected, there will likely be differences between any predictions and actual results. Always consult a licensed investment professional before making any investment decision. Be extremely careful, investing in securities carries a high degree of risk; you may likely lose some or all of the investment.

!
Thumb 8020 monitor 200 200  png

8020 Admin

3 months

8020 Admin posted a News Item Artic Therm International (an Enterprise Group company) - Safe, Portable Heat Generation (up to 300F); With No Flame in Enterprise Group Inc.

 

How does one generate significant heat with no flame? And once done, what do you do with it? And of course, why?

Artic Therm is the largest proprietary supplier of flameless heat in Canada. And with this winter already starting (early) in the north, the all sizes of flameless heater rental units are moving out the door.

Thermal fluid heating is a type of indirect heating in which a liquid phase heat transfer medium is heated and circulated to one or more heat energy users within a closed loop system. Thermal oil, glycol, and water are common heat transfer mediums for these systems.

The units represent two Enterprise patents; one for the disc and one for the airflow design. The disc agitates the oil and creates 60% of generated heat. The rest is drawn from the operation of the diesel engine and exhaust piping within the unit.

The safety features include:

- Positive Air Shutdown (manual and automatic); set to shut down on engine RPM over-speed,

- Murphy gauges and switches for high temperature or low pressure shutdown on both engine and friction plate,

- Brushless Marine Alternators to ensure there is no source of ignition during operation. Our units are authorized to be in operation up to 7 meters to the wellhead.

Our units are authorized to be in operation up to 7 meters to the wellhead.

Oil and Gas, etc.

1. Pipeline expansion; pre-heat and expand pipe during construction

2.Tank and pipeline drying; dries

3. Curing Coatings; faster heal according to spec to ensure max strength

4. Facility maintenance; building project temp control

5. Well sites; prevent freezing of the wellhead.

- Plant outages/turnarounds

- Grain Drying

- Emergency thawing (or chilling)

- Portable climate control

- Portable cooling solutions

Flameless heat is not merely some fad or a way to speed up heating for convenience reasons. The application can make the difference between a saleable silo of seed as opposed to pretty worthless feed. Also, faster pipe and vessel curing increases the hardening of the materials, markedly lengthening pipe life.

Speaking of which, and with no agenda other than it would good for many companies including Enterprise; lots of pipelines will be built over the next several years. The expertise necessary such as flameless heat, pipeline extension, and curing will be the basis for new technologies. Will it make pipelines 100% safe? They will be safer.

It’s all Happening.

By May 2018, six more pipeline projects were approved. Total investment will be more than C$2 billion. While small, the LNG and Trans Canada Pipeline watusi will likely raise that by ‘billions and billions. (Carl Sagan) Four of the six:

- Located in British Columbia’s Peace River Regional District, the North Montney Mainline (NMML). Consists of a 206 kilometer (km), 42-inch pipeline, two compressor stations, and 14-meter stations. Construction has begun. (Through TransCanada’s subsidiary Nova Gas).

- In February Pembina Pipeline Corporation announced it would spend $120 million on the construction of new fractionation and terminalling facilities at its Empress extraction plant, located north of Medicine Hat.

- In May, MEG Energy disclosed that work is underway on a new expansion of its Christina Lake in situ oil sands project in northern Alberta.

- Keyera Corp. said in May that it is proceeding with phase two of its Wapiti Gas Plant near Grande Prairie, Alta., in the liquids-rich Montney play.

Additional processing capacity will also be added to Keyera Corp.'s Simonette gas plant, near Grande Prairie. The company says the facility continues to achieve record processing volumes.

With world energy needs projecting to increase by 45% by 2040, Canada's LNG plans seem an easier sell than oil, oils sands, etc.; although many of those will be approved. Burns clean and is a great partner to supplement Green tech for consistent clean electricity generation.

As Alberta and BC are one, two in Natural Gas production, companies such as Enterprise (and subsidiary Arctic Therm) are at the thin edge of the wedge for infrastructure building tech. Couple that with competitive and first-class rental equipment, it is hard not to extrapolate decent growth for services over the next decade(s). Add in agricultural demands for drying and other applications and flameless heat will become ubiquitous very quickly.

Another major caveat is the US’s current tariff plan. The effect ongoing will favor renting over buying major equipment pieces.

The top 10 source countries for U.S. steel imports represented 79 percent of the total steel import volume in YTD 2018 at 12.7 million metrics tons (mmt). Canada accounted for the largest share of U.S. imports by source country at 20 percent (3.3 mmt).

Canadian companies such as Enterprise have the equipment to not only survive but thrive, due to its strategies and top shelf and innovative/custom rentals.

The Company can really no longer be viewed merely as a supplier. It is now more of a resource; With exceptional growth potential.

Oh, almost forgot. Our beer cans are affected. That’s just wrong.

Disclaimer: Nothing in this article should be considered as personalized financial advice. We are not licensed under securities laws to address your particular financial situation. No communication by our employees to you should be deemed as personalized financial advice. Please consult a licensed financial advisor before making any investment decision. This is a paid advertisement and is neither an offer nor recommendation to buy or sell any security. We hold no investment licenses and are thus neither licensed nor qualified to provide investment advice. The content in this article is not provided to any individual with a view toward their individual circumstances. Baystreet.ca has been paid a fee of one thousand eight hundred dollars for Enterprise Group advertising. This compensation constitutes a conflict of interest as to our ability to remain objective in our communication regarding the profiled company. Because of this conflict, individuals are strongly encouraged to not use this article as the basis for any investment decision. While all information is believed to be reliable, it is not guaranteed by us to be accurate. Individuals should assume that all information contained in this article is not trustworthy unless verified by their own independent research. Also, because events and circumstances frequently do not occur as expected, there will likely be differences between any predictions and actual results. Always consult a licensed investment professional before making any investment decision. Be extremely careful, investing in securities carries a high degree of risk; you may likely lose some or all of the investment.

!
Thumb 0

Bob Beaty replied to the press release 8020 Admin  update in ENTERPRISE GROUP INC.

3 months

...

Thoughts on the sector? Any questions for management? Pretty apparent that Enterprise heats up the colder it gets.keyboard_arrow_downShow Post

!
Thumb 8020 monitor 200 200  png

8020 Admin

3 months

8020 Admin  posted an update in ENTERPRISE GROUP INC.

Enterprise Group (TSX:E): Time to Review and Renew

As we approach the time in the far and farther north where ice on a beard or scarf mimics a work of art, companies are gearing up for what is being heralded as a very ugly winter. Ugly is relative as you will see. Whether you subscribe to official weather services or the Farmer’s Almanac; don’t lick any exposed metal. You may be there a while as winter 2018-2019 is going to be, well, ugly.

For oil service companies, the ugly weather is good. The constituents of the sector sell critical heat, power and accommodation solutions for the farm and mine and heat and expertise.

"Ironically, Enterprise's share price is tied to the oil price," states Leonard Jaroszuk, CEO and President. "The reality is that our business of providing specialized industrial rental solutions and technologies should insulate us against that volatility. As well, the fact that we design and build specialty equipment for our clients—15 patents in place with more coming—means that we can be immediately responsive and relevant to address Government customers' unique needs, whether resource-centric or straight public infrastructure." (16.08.17)

Throughout the last year, which remained challenging for oil and oil service companies, Enterprise saw its share price hit a stand-up double moving from C$0.30 to C$0.63 January to June 2018.

The Company also hit some fantastic milestones during the same period:

  • Debt free
  • Raised asset value to C$1.01
  • Shares trading at $0.40
  • $40 million in funds available for growth (developmental, organic, acquisition)
  • Further
  • refinement of its proprietary StarChain technology.

When Enterprise Group acquired Westar Oilfield Rentals in 2014, one of the assets the company was working on was a business management software, known today as ‘STAR.' Enterprise continued to fund and upgrade the project and found itself with a proprietary asset that is critical to the profitability and cost mitigation of all of its subsidiaries.

  • STAR proprietary platform for future development and refinement
  • Task and monitoring capabilities save measurable personnel costs
  • Allows management to plan to deploy company-wide through 3 subs and future acquisitions
  • One of the Company's impressive value propositions over competitors
  • No plans to license; to remain a corporate asset
  • Not aware of any competitive software

The software tracks assets, which in itself cuts costs, utilizing the location and site ID put directly on the invoice. The system always knows where the asset is, and fleet managers confirm that on delivery.

Why Own Enterprise? Salient Points:

• Refocus to grow the lucrative industrial/resource rental business
• Cash flow positive since the beginning of 2015 downturn
• The profitable trend seems intact last three quarters
• Trades at less than half book value (C$1.01)
• Development of StarChain, a revolutionary monitoring and asset management software
• 15 proprietary patents for specialized equipment and processes
• Cost effective custom solutions
• Significant acquisition and capital expenditure
• Significant domestic growth plans

Last year the Company carefully evolved into a focused leader in the industrial rental, tracking software technology development; increasing its patent portfolio to 15.

Enterprise is not just some building with a bunch of old equipment for rent. The material is cutting edge, including a unique series of combo products (combo light/generator) and is keenly focused on the bottom line. The Company is going into, historically its biggest quarters and will, at the end of the year, will change again.

In the first half of 2018, management's efforts more than doubled the stock price. Given the state and plans of the Company and the outlook for large LNG and related contracts, Enterprise may look better now at C$0.40 than it did last year at C$0.30.

Speaking to Joel Bardwell, in charge of Technical Development at Enterprise sub-Hart Oil says that this year feels a lot like 2014 which was just before the energy sector meltdown. That could help with the fact that some snow is already swirling, has the potential to make this a great business year for Enterprise and its subs.

There's another exciting development in the sector. As oil prices rise, the devastation wrought on the oil services companies, particularly small ones appear to be reversing.

From Revenge Of The Oil Services Sector In 2018 - Forbes

Consolidation is rampant across the fragmented sector as firms scramble to keep the lights on and keep drilling.

As this rationalization plays out in 2018, it should become clear that the current producer-contractor relationship is not sustainable. The state of oversupply in the oil-services sector won't last forever. Labor is already tight, and struggling contractors can't afford to hire highly-trained personnel and re-equip without renegotiating their fees. For three years they've been unable to invest because of low oil prices. Producers seeking to ramp up will find that contractor capacity is either insufficient or altogether absent to meet rising demand. The chickens are coming home to roost.

While that quote keys on US companies, the sector is global. Oil services companies are still pretty much at the pricing mercy of their customers, not to mention their peers.

If Enterprise finds itself with all of its equipment deployed, an earlier than normal winter and rising demand, one thing is sure; prices will increase, and the boot will be on the other foot.

The oil service companies have the equipment, expertise, heat and heat systems to keep drills turning and pipelines growing.

Take those away, and it gets dodgy: 'Pay or Don't Play.'

So, what of Enterprise?

As we told you last year: Buy some. Find out.

#############

NB: Enterprise is pleased to support 8020Connect.
Investors want timely Information
Management want to keep shareholders and investors informed
Enter 8020Connect.com; Respectful, Compliant, Monitored.
Free to Join for Investors.

Disclaimer: Nothing in this article should be considered as personalized financial advice. We are not licensed under securities laws to address your particular financial situation. No communication by our employees to you should be deemed as personalized financial advice. Please consult a licensed financial advisor before making any investment decision. This is a paid advertisement and is neither an offer nor recommendation to buy or sell any security. We hold no investment licenses and are thus neither licensed nor qualified to provide investment advice. The content in this article is not provided to any individual with a view toward their individual circumstances. Baystreet.ca has been paid a fee of one thousand eight hundred dollars for Enterprise Group advertising. This compensation constitutes a conflict of interest as to our ability to remain objective in our communication regarding the profiled company. Because of this conflict, individuals are strongly encouraged to not use this article as the basis for any investment decision. While all information is believed to be reliable, it is not guaranteed by us to be accurate. Individuals should assume that all information contained in this article is not trustworthy unless verified by their own independent research. Also, because events and circumstances frequently do not occur as expected, there will likely be differences between any predictions and actual results. Always consult a licensed investment professional before making any investment decision. Be extremely careful, investing in securities carries a high degree of risk; you may likely lose some or all of the investment.

!
Thumb 8020 monitor 200 200  png

8020 Admin

3 months

8020 Admin posted a press release Enterprise Group (TSX:E): Time to Review and Renew in Enterprise Group Inc.

Enterprise Group (TSX:E): Time to Review and Renew

As we approach the time in the far and farther north where ice on a beard or scarf mimics a work of art, companies are gearing up for what is being heralded as a very ugly winter. Ugly is relative as you will see. Whether you subscribe to official weather services or the Farmer’s Almanac; don’t lick any exposed metal. You may be there a while as winter 2018-2019 is going to be, well, ugly.

For oil service companies, the ugly weather is good. The constituents of the sector sell critical heat, power and accommodation solutions for the farm and mine and heat and expertise.

"Ironically, Enterprise's share price is tied to the oil price," states Leonard Jaroszuk, CEO and President. "The reality is that our business of providing specialized industrial rental solutions and technologies should insulate us against that volatility. As well, the fact that we design and build specialty equipment for our clients—15 patents in place with more coming—means that we can be immediately responsive and relevant to address Government customers' unique needs, whether resource-centric or straight public infrastructure." (16.08.17)

Throughout the last year, which remained challenging for oil and oil service companies, Enterprise saw its share price hit a stand-up double moving from C$0.30 to C$0.63 January to June 2018.

The Company also hit some fantastic milestones during the same period:

  • Debt free
  • Raised asset value to C$1.01
  • Shares trading at $0.40
  • $40 million in funds available for growth (developmental, organic, acquisition)
  • Further
  • refinement of its proprietary StarChain technology.

When Enterprise Group acquired Westar Oilfield Rentals in 2014, one of the assets the company was working on was a business management software, known today as ‘STAR.' Enterprise continued to fund and upgrade the project and found itself with a proprietary asset that is critical to the profitability and cost mitigation of all of its subsidiaries.

  • STAR proprietary platform for future development and refinement
  • Task and monitoring capabilities save measurable personnel costs
  • Allows management to plan to deploy company-wide through 3 subs and future acquisitions
  • One of the Company's impressive value propositions over competitors
  • No plans to license; to remain a corporate asset
  • Not aware of any competitive software

The software tracks assets, which in itself cuts costs, utilizing the location and site ID put directly on the invoice. The system always knows where the asset is, and fleet managers confirm that on delivery.

Why Own Enterprise? Salient Points:

• Refocus to grow the lucrative industrial/resource rental business
• Cash flow positive since the beginning of 2015 downturn
• The profitable trend seems intact last three quarters
• Trades at less than half book value (C$1.01)
• Development of StarChain, a revolutionary monitoring and asset management software
• 15 proprietary patents for specialized equipment and processes
• Cost effective custom solutions
• Significant acquisition and capital expenditure
• Significant domestic growth plans

Last year the Company carefully evolved into a focused leader in the industrial rental, tracking software technology development; increasing its patent portfolio to 15.

Enterprise is not just some building with a bunch of old equipment for rent. The material is cutting edge, including a unique series of combo products (combo light/generator) and is keenly focused on the bottom line. The Company is going into, historically its biggest quarters and will, at the end of the year, will change again.

In the first half of 2018, management's efforts more than doubled the stock price. Given the state and plans of the Company and the outlook for large LNG and related contracts, Enterprise may look better now at C$0.40 than it did last year at C$0.30.

Speaking to Joel Bardwell, in charge of Technical Development at Enterprise sub-Hart Oil says that this year feels a lot like 2014 which was just before the energy sector meltdown. That could help with the fact that some snow is already swirling, has the potential to make this a great business year for Enterprise and its subs.

There's another exciting development in the sector. As oil prices rise, the devastation wrought on the oil services companies, particularly small ones appear to be reversing.

From Revenge Of The Oil Services Sector In 2018 - Forbes

Consolidation is rampant across the fragmented sector as firms scramble to keep the lights on and keep drilling.

As this rationalization plays out in 2018, it should become clear that the current producer-contractor relationship is not sustainable. The state of oversupply in the oil-services sector won't last forever. Labor is already tight, and struggling contractors can't afford to hire highly-trained personnel and re-equip without renegotiating their fees. For three years they've been unable to invest because of low oil prices. Producers seeking to ramp up will find that contractor capacity is either insufficient or altogether absent to meet rising demand. The chickens are coming home to roost.

While that quote keys on US companies, the sector is global. Oil services companies are still pretty much at the pricing mercy of their customers, not to mention their peers.

If Enterprise finds itself with all of its equipment deployed, an earlier than normal winter and rising demand, one thing is sure; prices will increase, and the boot will be on the other foot.

The oil service companies have the equipment, expertise, heat and heat systems to keep drills turning and pipelines growing.

Take those away, and it gets dodgy: 'Pay or Don't Play.'

So, what of Enterprise?

As we told you last year: Buy some. Find out.

#############

NB: Enterprise is pleased to support 8020Connect.
Investors want timely Information
Management want to keep shareholders and investors informed
Enter 8020Connect.com; Respectful, Compliant, Monitored.
Free to Join for Investors.

Disclaimer: Nothing in this article should be considered as personalized financial advice. We are not licensed under securities laws to address your particular financial situation. No communication by our employees to you should be deemed as personalized financial advice. Please consult a licensed financial advisor before making any investment decision. This is a paid advertisement and is neither an offer nor recommendation to buy or sell any security. We hold no investment licenses and are thus neither licensed nor qualified to provide investment advice. The content in this article is not provided to any individual with a view toward their individual circumstances. Baystreet.ca has been paid a fee of one thousand eight hundred dollars for Enterprise Group advertising. This compensation constitutes a conflict of interest as to our ability to remain objective in our communication regarding the profiled company. Because of this conflict, individuals are strongly encouraged to not use this article as the basis for any investment decision. While all information is believed to be reliable, it is not guaranteed by us to be accurate. Individuals should assume that all information contained in this article is not trustworthy unless verified by their own independent research. Also, because events and circumstances frequently do not occur as expected, there will likely be differences between any predictions and actual results. Always consult a licensed investment professional before making any investment decision. Be extremely careful, investing in securities carries a high degree of risk; you may likely lose some or all of the investment.

!

Media Relations posted a News Item Investors: Winter is Coming in Enterprise Group Inc.

Artic Therm is Ready.

Whether pro-pipeline or con, most have no idea the science and safety protocols employed when an oil or natural gas line is laid. The general consensus --that a truckload of pipe is rolled up to a ditch and dumped in is -- in a word, crazy.

Why Artic Therm?

- Since 1997, pioneers in flameless heating and pipeline thermal expansion solutions

- ATI uses portable equipment and proprietary technology to provide efficient ‘Flameless Heat’ and breathable ‘Green Air’ in remote locations that present extreme climate challenges

- Outputs of 125,000 to 3.3 million BTUs

- Blower technology provides up to 15,000 CFM (Cubic feet per minute)

- Versatility that facilitates numerous heating and thawing applications

Laying pipeline is a complex industrial dance of extreme safety measures. Not the least of which is the expansion and contraction of the pipeline sections themselves. Artic Therm (ATI) is the leader in this sector, not to mention other areas (thawing, grain drying, etc.). The Company has and continues to develop a myriad of applications for its flameless heat technology. This time of year, is when companies are organizing the equipment necessary to realize their planned infrastructure builds. Pipeline construction has a very precise set of preparatory steps.

Artic Therm specializes in pipe diameters ranging from 4 to 48 inches: And pipe lengths from a few feet to several kilometers. In the Arctic, the difference in the ambient temperature versus the temperature of the liquid flowing through can have a massive effect on its integrity. Even high school physics teaches that really hot versus really cold is a recipe for disaster for pipe not properly prepared. Relatively complex calculations are employed to determine the time and temperature necessary to expand and lengthen the pipe, which thereby reduces stresses as well as the need for numerous expansion couplings, or indeed any at all.

The process changes little with size or length; however non-insulated lines have many variables that can affect the pre-heating. ATI engineering helps to determine the section lengths which are dependent upon the pipeline scope, size and ambient temperatures. On the smaller diameter lines, the Company will utilize a drafting method to allow consistent flow and absorption of heat. Drafting involves using a heating unit to push the heat and a blower on the distal end to draw the heat.

‘Over 20 years ago, Artic Therm pioneered this technology and now has the largest fleet of flameless units in the country” stated Des O’Kell, SVP of Enterprise Group. “During the construction phase of a 79,494 m3 tank, the ATI 2500 supplied breathable heated air into the tank; which melted built up snow and ice, over 8’’(20.32cm) thick . For this size of tank, the ATI 2500 with 2,500,000 BTU, 8,500 CFM, and a maximum output of 115°C was flawless.”

500,000 Barrel Tanks•Internal temperature achieved 112°C •Average ambient temperature -15°C

The other aspect to the heating is ATI’s ‘Green Air’, which ensures that should personnel have to work in the environment, the air is contaminant free. When that pipe is installed, along with other protocols, the normal stress upon flow has been vastly reduced and the pipe is contaminant free. Normally the oil etc., is treated as well to eliminate contaminants.

Heat in the arctic is as important as water in the desert.

Safety Never Takes A Holiday

- Positive air shut down
- Murphy gauges
- Double containment
- Brushless alternators
- Operating beacon lights
- User friendly system
- GPS software

Should any onboard systems fail or approach failure, the units’ Murphy Gauges will shut the equipment down and alert the operator either onsite or off. The CFM pusher fan located near the rear of the unit then drives the clean breathable heat through the 12 or 16-inch manual outlets into the target area. The heat that the engine and exhaust produces is reclaimed and recirculated.

Keep up with the Jeeps

The purpose of heating is to see who can have the prettiest pipeline but is employed to make these crucial pieces of infrastructure as safe with the longest life possible. Pipelines are coated with a non-conductive coating. During transport and deployment, the coating can suffer anything from a large gash to an imperceptible crack, exposing the metal pipe. As with all welds, the pipe is x-rayed to both check integrity and identify other imperfections know as jeeps.

ATI’s mission is to provide an efficient flameless and breathable heat for multiple applications in remote locations and extreme climate challenges. ATI achieves this with three divisions. The first being rentals, which consists of over 150 portable tow-behind Heaters as well as several large self-contained truck mounted flameless units. ATI’s climate control technology focuses on air quality within confined spaces. And lastly, ATI projects division, that utilizes the same technology, but on a much larger scale, allows versatility for the varied and unique client specifications.

Investors Take Note. Now.

For investors, ATI and Enterprise are bearing down on a potentially record season. Quote requests are up smartly, and the company feels complete deployment of heating units is likely. The shares more than doubled this year (C$0.29-C$0.62) and have settled back to the C$0.40 per share range. Spring and early summer tend to be quieter as the Company ramps up for fall and winter; historically a reasonable time to pick up some shares.

Also, with the uncertainty of US tariffs, prices for new machines are rising as are parts. It is within the realm of certainty that all of these factors could well lead Enterprise into record revenue territory.

The one thing this tariff watusi tells us is that while always a good business call, renting likely was never so important.

Winter is Coming: Operators await.

 

Disclaimer: Nothing in this article should be considered as personalized financial advice. We are not licensed under securities laws to address your particular financial situation. No communication by our employees to you should be deemed as personalized financial advice. Please consult a licensed financial advisor before making any investment decision. This is a paid advertisement and is neither an offer nor recommendation to buy or sell any security. We hold no investment licenses and are thus neither licensed nor qualified to provide investment advice. The content in this article is not provided to any individual with a view toward their individual circumstances. Baystreet.ca has been paid a fee of one thousand eight hundred dollars for Enterprise Group advertising. This compensation constitutes a conflict of interest as to our ability to remain objective in our communication regarding the profiled company. Because of this conflict, individuals are strongly encouraged to not use this article as the basis for any investment decision. While all information is believed to be reliable, it is not guaranteed by us to be accurate. Individuals should assume that all information contained in this article is not trustworthy unless verified by their own independent research. Also, because events and circumstances frequently do not occur as expected, there will likely be differences between any predictions and actual results. Always consult a licensed investment professional before making any investment decision. Be extremely careful, investing in securities carries a high degree of risk; you may likely lose some or all of the investment.

!
Thumb 8020 monitor 200 200  png

8020 Admin

4 months

8020 Admin posted a press release Enterprise Group Announces Normal Course Issuer Bid in Enterprise Group Inc.

ST. ALBERT, AB, Aug. 17, 2018 /CNW/ - Enterprise Group, Inc. ("Enterprise," or "the Company") (TSX: E) announces that the Toronto Stock Exchange ("TSX") has accepted its notice of intention to make a normal course issuer bid to purchase outstanding common shares of the Company ("Shares") on the open market in accordance with the rules of the TSX. 

The Company is authorized to purchase up to 4,393,820 Shares under the normal course issuer bid, representing 10% of its public float, as of August 7, 2018. As of that date, there were 55,147,374 Shares issued and outstanding. The average daily trading volume of the Shares for the six months ended August 7, 2018, calculated in accordance with the rules of the TSX, was 37,550 Shares. Enterprise is subject to a daily repurchase limit of 25% of such volume, being 9,387 Shares, except where such purchases are made in accordance with the block purchase exemption under TSX rules.

Enterprise intends to commence the normal course issuer bid on August 21, 2018 and terminate the bid on August 20, 2019 or such earlier time as the bid is completed or terminated at the option of the Company. All Shares purchased under this bid will be purchased in the open market through the facilities of the TSX or alternative Canadian trading systems at the prevailing market price at the time of such transaction. Shares acquired under the bid will be cancelled. During the past 12 months, the Company has purchased an aggregate of 505,000 Shares at a weighted average price of $0.4225 per Share. The previous normal course issuer bid expired on June 11, 2018.

Enterprise's Board of Directors has authorized the normal course issuer bid as it is believed that the purchase of the Shares pursuant to the normal course issuer bid is in the best interest of shareholders as the Shares may become available at prices that make an attractive investment and appropriate use of the Company's funds. 

About Enterprise Group, Inc.

Enterprise Group, Inc. is a consolidator of services to the energy sector. The Company's focus is primarily specialized equipment rental. The Company's strategy is to acquire complementary service companies in Western Canada, consolidating capital, management, and human resources to support continued growth. More information is available at the Company's website www.enterprisegrp.ca. Corporate filings can be found on www.sedar.com

Forward-Looking Information

This news release may contain certain forward-looking information as defined under applicable Canadian securities legislation, that is not based on historical fact, including without limitation statements containing the words "believes", "anticipates", "plans", "intends", "will", "should", "expects", "continue", "estimate", "forecasts" and other similar expressions. In particular, this news release includes forward-looking information relating to the Company's intention to purchase Shares pursuant to the normal course issuer bid, the number of Shares to be purchased, the timing of such purchases and the impact of such purchases on the value of the remaining Shares. Actual results, events or developments could be materially different from those expressed or implied by these forward-looking statements. There is no assurance that any of the events or expectations will occur or be realized. By their nature, forward-looking statements are subject to numerous assumptions and risk factors including those discussed in the Company's Annual Information Form and most recent MD&A which are incorporated herein by reference and are available through SEDAR at www.sedar.com. The forward-looking statements contained in this news release are expressly qualified by this cautionary statement and are made as of the date hereof. The Company disclaims any intention and has no obligation or responsibility, except as required by law, to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.

SOURCE Enterprise Group, Inc.

View original content: http://www.newswire.ca/en/releases/archive/August2018/17/c1942.html

For questions or additional information, please contact: Leonard Jaroszuk: President & CEO, or Desmond O'Kell: Senior Vice-President, contact@enterprisegrp.ca, 780-418-4400Copyright CNW Group 2018

!
Thumb 8020 monitor 200 200  png

8020 Admin

4 months

8020 Admin posted a press release Enterprise Group Announces Results for Second Quarter 2018 in Enterprise Group Inc.

St. Albert, Alberta (FSCwire) - Enterprise Group, Inc. (the “Company” or “Enterprise”) (TSX: E), a consolidator of services to the energy sector; focused primarily on specialized equipment rental; today released its Q2 2018 results.

(1) Identified and defined under “Non-IFRS Measures”.

(2) In March 2018, the Company closed a transaction to divest substantially all the assets of CTHA. The net operations of CTHA, including the prior period, are presented as a single amount in the consolidated statements of income (loss) and comprehensive income (loss)

• The Company’s operations are subject to seasonality and historically experiences lower activity in the second quarter. The second quarter of 2018 was no exception with spring break thaw and road bans slowing activity. Many customers also chose to delay the re-start of operations after spring thaw and only began renting equipment in June and July.

• Despite the reduced activity during the second quarter, for the six months ended June 30, 2018, the Company generated positive cash flow from operations of $1,857,387 and over the same period the Company purchased and cancelled 310,500 shares valued at $142,100. Enterprise believes its stock remains undervalued and will continue to re-invest positive cash flow to buy-back shares to enhance shareholder value. Enterprise is in the process of obtaining approval for a normal course issuer bid to purchase up to 10% of its outstanding stock.

• Over the last 2 years, the Company has made significant improvements to its statement of financial position and overall total debt and continues to make regular debt repayments. At June 30, 2018, after adjusting for goodwill and deferred taxes, the Company has assets more than total debt of approximately $50,000,000. Enterprise will continue to look for opportunities to improve its financial position and opportunities that will allow the Company to diversify and expand.

• For the six months ended June 30, 2018, Enterprise added $2,267,114 of capital assets to complement its rental fleet. Most of the equipment added, was at the request of, or in consultation with Enterprise’s customers, and as a result, these additions were generating revenue shortly after acquired. Also, in June 2018, Enterprise acquired property that it was previously renting in Pouce Coupe, British Columbia. Ownership of the Pouce Coupe property will allow for diversification and expansion in that region to better service customers.

• Revenue for the three months ended June 30, 2018, of $3,240,620 decreased by $991,832 or 23% when compared with the prior period. Revenue for the six months ended June 30, 2018, of $10,050,856 decreased by $1,196,875 compared to the prior period because of the slower second quarter as explained above.

• Gross margin for the three months ended June 30, 2018, of $(1,312,114) or (40%), decreased compared to the prior period and EBITDA for the same period decreased to $(2,181,411). The decrease in gross margin and EBITDA are consistent with decreased revenue as explained above. During the second quarter, Enterprise was successful maintaining its existing customer base, however customer demand was for lower margin services compared to demand in the prior period. Management is committed to maintaining a high quality of service provided to its customers to position the Company to benefit from future increases in activity levels and additional work from large project approvals. Gross margin for the six months ended June 30, 2018, was $813,380, a decrease of $2,359,144 from the prior period. The decrease is due to slower second quarter activity as explained above.

Outlook

The second half of 2018 continues to look positive and we anticipate growth throughout the industry. The restart of the Site C Damn project in Fort St. John, B.C., is expected to begin in 2018, the purchase of the Trans Mountain pipeline by the Federal Government has increased the likelihood of this project proceeding, and the final decision on the LNG Canada project is also likely by the end of 2018.

As a result of ongoing discussions with customers, management’s confidence is building in its outlook for the Company and its services. Management remains confident in its strategic and operational plans and has a seasoned leadership team to guide the Company. Enterprise is committed to its customer base throughout the Western Canadian provinces and strives to provide excellent customer service and is excited about its future prospects.

About Enterprise Group, Inc.

Enterprise Group, Inc. is a consolidator of services to the energy sector. The Company’s focus is primarily on specialized equipment rental. The Company’s strategy is to acquire complementary service companies in Western Canada, consolidating capital, management, and human resources to support continued growth. More information is available at the Company’s website www.enterprisegrp.ca. Corporate filings can be found on www.sedar.com.

For questions or additional information, please contact:

Leonard Jaroszuk, President & CEO, or
Desmond O’Kell, Senior Vice-President
780-418-4400
contact@enterprisegrp.ca

Forward-Looking Information

Certain statements contained in this news release constitute forward-looking information. These statements relate to future events or the Company’s future performance. The use of any of the words "could", "expect", "believe", "will", "projected", "estimated" and similar expressions and statements relating to matters that are not historical facts are intended to identify forward-looking information and are based on the Company's current belief or assumptions as to the outcome and timing of such future events. Actual future results may differ materially. The Company's Annual Information Form and other documents filed with securities regulatory authorities (accessible through the SEDAR website www.sedar.com) describe the risks, material assumptions and other factors that could influence actual results and which are incorporated herein by reference. The Company disclaims any intention or obligation to publicly update or revise any forward-looking information, whether as a result of new information, future events or otherwise, except as may be expressly required by applicable securities laws.

Non-IFRS Measures

The Company uses International Financial Reporting Standards (“IFRS”). EBITDA is not a measure that has any standardized meaning prescribed by IFRS and is therefore referred to as a non-IFRS measure. This news release contains references to EBITDA. This non-IFRS measure used by the Company may not be comparable to a similar measure used by other companies. Management believes that in addition to net income, EBITDA is a useful supplemental measure as it provides an indication of the results generated by the Company’s principal business activities prior to consideration of how those activities are financed or how the results are taxed. EBITDA is calculated as net income excluding depreciation, amortization, interest, taxes and stock based compensation.

To view the original release, please click here

Source: Enterprise Group Inc. (TSX:E)

News Provided by FSCwire via QuoteMedia

!
Thumb 0

Bob Beaty

5 months

Bob Beaty posted a News Item LNG Development 2.0 Could be Generational; Enterprise Group (TSX:E) in Enterprise Group Inc.

 

LNG Development 2.0 Could be Generational; Enterprise Group (E:TSX)

Not long ago, in a land not far from here or there, the Canadian Resource sector took two near fatal mortar rounds to the chest. The first was the oil price decline that left the sector neutered in 2015 with many casualties. In the midst of that recovery, the jubilation for LNG exports to Asia – perceived saviour of the industry—was derailed as major partners went to ground.

One theory that might be more prudent this time is to put early investment dollars into equipment and infrastructure companies that are gearing up.

As a proxy for this growth, Enterprise Group (E:TSX), the premier industrial rental company in Western Canada comes into this burgeoning market aggressively and debt free: The Company appears to be a substantial proxy and winner as several huge potential developments unfold in its target area. As well, the Company has significant access to funds for buying equipment, complementary companies or both. Enterprises history is to buy accretive assets, utilized them for several years to generate significant revenue and then sell at a profit.

As the LNG 2.0 growth commences, Enterprise is known as a one stop shop very well known by the industry as having exceptional equipment coupled with wide ranging custom solutions. Not to mention the plaudits it gained by working with clients to help in the downtimes. Not everything is about money.

And at C$0.45 trades at less than ½ book value of C$1.01.

Why Own Enterprise? Salient Points:

  • • Refocus to grow the lucrative industrial/resource rental business
  • • Cash flow positive since the beginning of 2015 downturn
  • Profitable trend seems intact last three quarters
  • • Trades at less than half book value (C$1.01)
  • Development of StarChain, a revolutionary monitoring and asset management software
  • • 15 proprietary patents for specialized equipment and processes
  • • Cost effective custom solutions
  • • Significant acquisition and capital expenditure
  • Significant domestic growth plans

 

Third Time the Charm

Due to the vagaries of the sector, these products and services are always needed. If it all comes together at once—LNG Canada commences and oil stays reasonable the renaissance of multiple sectors is or could soon be apparent.

"If you think back three, four years ago when we all had LNG euphoria, that there was a slew of projects ahead of us, we certainly didn't see any boxes being ticked to the same degree that they are today," stated Horizon North Logistics Inc. (HNL:TSX ) Chief Financial Officer Scott Matson. "Our view internally is that the flag in the ground was Petronas buying in. We have a hard time believing they would spend an ounce of time, energy or a dollar unless they had a clean line of sight to the project moving ahead."

LNG Canada is a joint venture between Royal Dutch Shell Plc, PetroChina Co. Ltd, Mitsubishi Corp and Korea Gas Corp. TransCanada Corp will build the pipeline.

The Centre of the Universe?

In St. Albert near Edmonton Alberta, there were several reasons the Enterprise C-Suite team worked to save, expand and grow Enterprise Group. During the almost fatal resource decline mid-decade, one main reason was the new prospect of the significant resurgence of massive LNG spending.

The reasons for this renewed activity years on --after Pacific Northwest LNG populated mainly by Malaysia's Petronas cancelled participation in 2017. Always watch the left hand as in a feat of corporate legerdemain it is now a major partner in the phoenix-like reanimation of LNG Canada. The workforce will not be a vast majority of TFW (temporary foreign workers) which was a major plank of the previous plan, but the vast majority (approximately 95%) Canadian.

" The potential for the development of LNG to announce and go ahead in the fall is roughly an 8 out of 10," stated Des O'Kell SVP of Enterprise. " Related activity is apparent from Kitimat to Fort St. John; negotiations with First Nations, equipment plans and office leasing. All of this is against a backdrop of high condensate prices to make the bitumen flow effectively. The reality is that early exposure to this development trend is key; with an eye to commodity prices. Opening a valve to Asia would very simply provide massive growth of Canada's energy exports."

To give some perspective, Alberta's Black Diamond (BDI: TSX) announced to a contingent $42.5 million camp contract in concert with indigenous partnerships. The landscape is getting thicker with a growing list of monies to be spent and plans to be executed. Houston-based Civeo Corp (NYSE: CVEO) has already been awarded conditional contracts for a 440-bed permanent facility at Kitimat and a 4,500-bed temporary camp for the export terminal construction phase.

Kitimat’s Haisla Nation has made its support apparent through a letter to the NDP from Chief Councillor Crystal Smith:

Unlike others who think the answer is simply ‘no’ to development, we believe in balance between the economy and the environment. Projects can be built right. A project like LNG Canada provides the right balance for us, being a potential major employer and the lowest CO2 emitting LNG facility in the world. We’ve spent more than a decade speaking with LNG proponents to emphasize what’s important to us in our communities and we’ve enjoyed the debate which has led us to today.”

BC Opposition is also onside. Former BC Liberal LNG Minister Rich Coleman stated; "It would get a product we have a huge amount of, we have a 150-year supply of natural gas and would allow us to ship it to China and other countries. Shipping to China would help with climate issues and everything else."

LNG has much going for it, not the least of which, along with massive supplies is, no apology to Trump, the natural replacement for coal. It's also important to realize the Trump factor which seems that he could do something ridiculous that could help or hurt the resource sector. He could do nothing with the same result. There will be no in between.

From the Financial Post: "Those LNG markets are turning around, says Shell's 2018 LNG outlook. It found the market has defied expectations, growing by 29 million tonnes in 2017."Based on current demand projections, Shell sees a potential for a supply shortage developing in the mid-2020s, unless new LNG production project commitments are made soon."

So, what do we get? We unlock a giant-killing amount of Nat gas, open up LNG markets to lessen dependence on the US. As well as essential jobs created for decades and the prospect of further projects. Considerable interaction with First Nations as substantive partners. Get bitumen flowing to markets. This situation is not merely some ‘nice little resource deal.' It is an entirely and possibly multi-generational expansion that, until alternatives come online, provides a viable and cleaner source of power that of coal, oil, etc.

After the last two go-arounds this decade, trepidation would likely be an apt description. But as any risk-taking investor will tell you; Fortune Favors the Bold and merde happens.

Faites vos jeux, mes amis.

!
Thumb 0

Bob Beaty

5 months

Bob Beaty posted a News Item Enterprise Group (TSX:E) Brings the Heat to Farmers and Investors in Enterprise Group Inc.

From a farmer’s grain bin to the massive reaches of the frozen north of Canada, where virtually every fuel and metal on Earth is extracted, what is the most sought-after commodity?

Heat. Particularly Flameless Heat.

A couple of years ago, Artic Therm (ATI)-- a wholly owned subsidiary of Alberta-based Enterprise Group (E: TSX) began expanding applications for its flameless heat business. That gamble has resulted in roughly a 25% growth in business year over year. (Ask any fireman and he will tell you fighting a fire in freezing weather is the ultimate nightmare).

With approximately 150 units, these robust and versatile units from retail size to those large enough to heat and condition massive lengths of pipelines and require an operator 24/7.

Hands up! Who Likes Wet Grain?

No one.

Drying grain, thawing frozen equipment, heating a barn or living quarters or prepping a pipeline section; it is pretty much the only economical way to keep things warm and dry. Temperatures that can reach minus 50, and that’s before the addition of the almost constant deadly wind chills.

Let’s chat about Grain Drying.

The traditional process; combine, bin, remove, dry with a natural gas dryer. Downsides? Time and portability. The new way, combine, bin, turn on aeration fan, hook up Artic Therm Dryer. Each grain has or is reduced to an acceptable level of moisture. The faster the excess can be removed, the longer the quality and salability are maintained. Check out the chart below and the nifty truck pic:

Weight of water in barley at various moisture contents

Utilizing one of Artic Therm’s 150 flameless heaters, with maximum heat ranging from 500K btu to just over 3 million btu, the goal is to add the dryer and upping the efficiency of the bin’s aeration fan. By speeding up drying by a point (1%) a day, the process is not only cost effective but gets the grain to market faster thereby securing better prices. The barley chart above delineates the moisture reduction.

As well, since grain can be binned all over a large farm, portability is critical. The stakes are high; if not done correctly, a lucrative crop will quickly be reduced to worthless seed.

What are the costs per bushel for this grain drying?

With a monthly rental cost in the low four figures, the cost of retaining quality top price grain is worth the incremental heating cost, which works out to pennies a bushel. If the process gets the good product to market faster, even slightly, it’s a small price to pay.

Again, this is probably best illustrated with an example calculation using several assumptions. Keep in mind that this example includes fuel costs only and does not include the additional costs of labor, electricity, grain handling, depreciation, and other less direct costs.

- 1 gigajoule (GJ) = 1,000,000 BTU (1 GJ/1,000,000 BTU) 
- Natural gas costs $5/GJ
- Weight of water to remove: 9.6 lb. - 7.1 lb. = 2.5 lb./bu
- 2.5 lb./bu X 2000 BTU/lb. = 5000 BTU/bu needed
- $5/GJ X 1GJ/1,000,000 BTU X 5000 BTU/bu = $0.025/bu

Take out the Nat Gas portion and drying costs per bushel drop dramatically

“The drying concept is not actually to blow massive amounts of heat into the grain but to make the aeration fans in the bins more efficient,” states Desmond O’Kell SVP of Enterprise. “While an aeration fan will eventually dry the grain, and/or with the use of expensive natural gas, our units vastly shorten drying time and more cost-effectively allow our client to get the best or desired price for the crops whether going to market immediately or resting in a grain silo. Like most products at our subsidiaries, management keeps assets in top shape and rented. That means coming up with a myriad of uses that both maximize rental time and ultimately revenues.”

Why Should Investors Care About Wet Grain?

They shouldn’t. They should care about dry grain.

 

With significant growth rates, ATI is quickly educating farmers to eschew their healthy and usually wise resistance to new processes.

“Once a cereal crop is harvested, it may have to be stored for a period before it can be marketed or used as feed or seed. The length of time cereal can be safely stored will depend on the condition it was harvested, and the type of storage facility being utilized. Grain binned at lower temperatures and moisture contents can be kept in storage for longer periods of time before its quality will deteriorate. The presence and build-up of insects, mites, molds and fungi, which are all affected by grain temperature and grain moisture content, will affect the grain quality and duration of grain storage.” (Alberta Agriculture and Forestry)

Bottom Line

Using heat to make the drying process more efficient is a relatively new process but quickly becoming an impressive profit centre. There are very few companies who have made an ATI size commitment and the Company is arguably the most significant player. Even ATI/Enterprise don’t know the exact size of what is undoubtedly a massive market. The Company is confident that as efficacy of the process spreads, the current and initial 25% year over year growth rate should climb dramatically. From an idea born at ATI to generate revenues during the 2015 downturn, grain drying is looking to become a significant revenue generator; along with all the other necessary uses of this unique flameless application.

Harvest is looming, and the Company is already seeing increased quote requests over last year.

Farmers and investors are not dissimilar. Those that are successful watch over their investments and find the best ways to maximize revenue and profits. It’s healthy that both are somewhat skeptical of new processes, but as Grain Drying is already a success and has potentially a massive growth path, it will become mainstream soon.

Almost forgot: Using the traditional drying methods, the aeration fan pulls out the moisture which tends to gather on the inside roof of the bin; meaning the drying takes longer without an ATI product. As a result, the traditional process can result in the first few feet of the top grain becoming wet, moldy and uneconomic. With the dryer combined the aeration fan(s), the result is a much higher volume of dry, saleable grain.

Disclaimer: Nothing in this article should be considered as personalized financial advice. We are not licensed under securities laws to address your particular financial situation. No communication by our employees to you should be deemed as personalized financial advice. Please consult a licensed financial advisor before making any investment decision. This is a paid advertisement and is neither an offer nor recommendation to buy or sell any security. We hold no investment licenses and are thus neither licensed nor qualified to provide investment advice. The content in this article is not provided to any individual with a view toward their individual circumstances. Baystreet.ca has been paid a fee of one thousand two hundred dollars for Enterprise Group advertising. This compensation constitutes a conflict of interest as to our ability to remain objective in our communication regarding the profiled company. Because of this conflict, individuals are strongly encouraged to not use this article as the basis for any investment decision. While all information is believed to be reliable, it is not guaranteed by us to be accurate. Individuals should assume that all information contained in this article is not trustworthy unless verified by their own independent research. Also, because events and circumstances frequently do not occur as expected, there will likely be differences between any predictions and actual results. Always consult a licensed investment professional before making any investment decision. Be extremely careful, investing in securities carries a high degree of risk; you may likely lose some or all of the investment.

News Provided by Livemoney via QuoteMedia

!

Enterprise Group Inc.

lockPrivate Group

Enterprise Group has maintained a strong vision to be the largest construction services and specialized equipment rental organization in Western Canada. With development activity in the energy services and civil construction sector expected to increase as the economy strengthens, the Enterprise G...

people47 Members       (0)

Corporate Profile
Group Admins:
  • Thumb 8020 monitor 200 200  png
  • Thumb desmond
  • Thumb no photo
Request Membership


Enterprise Group Inc.

lockPrivateGroup

Enterprise Group has maintained a strong vision to be the largest construction services and specialized equipment ren......

people47 Members       (0)

Thumb 8020 media relations

Media Relations posted an update inENTERPRISE GROUP INC.

1 month

Enterprise Group (TSX: $E. TO) Don't Freeze LNG out of your Portfolio By: Motion Communications

insert_drive_fileDon_t_Freeze_LNG.pdf

!

Management is superb. Trades at more than 1/2 breakup. Sector in the biffy. Doubled from Jan to April 2018. Sector weakened. Once LNG comes online, I think you'll be pleasantly surprised.keyboard_arrow_downShow Post

!
Thumb 8020 monitor 200 200  png

8020 Admin

3 months

8020 Admin  posted an update in ENTERPRISE GROUP INC.

 

How does one generate significant heat with no flame? And once done, what do you do with it? And of course, why?

Artic Therm is the largest proprietary supplier of flameless heat in Canada. And with this winter already starting (early) in the north, the all sizes of flameless heater rental units are moving out the door.

Thermal fluid heating is a type of indirect heating in which a liquid phase heat transfer medium is heated and circulated to one or more heat energy users within a closed loop system. Thermal oil, glycol, and water are common heat transfer mediums for these systems.

The units represent two Enterprise patents; one for the disc and one for the airflow design. The disc agitates the oil and creates 60% of generated heat. The rest is drawn from the operation of the diesel engine and exhaust piping within the unit.

The safety features include:

- Positive Air Shutdown (manual and automatic); set to shut down on engine RPM over-speed,

- Murphy gauges and switches for high temperature or low pressure shutdown on both engine and friction plate,

- Brushless Marine Alternators to ensure there is no source of ignition during operation. Our units are authorized to be in operation up to 7 meters to the wellhead.

Our units are authorized to be in operation up to 7 meters to the wellhead.

Oil and Gas, etc.

1. Pipeline expansion; pre-heat and expand pipe during construction

2.Tank and pipeline drying; dries

3. Curing Coatings; faster heal according to spec to ensure max strength

4. Facility maintenance; building project temp control

5. Well sites; prevent freezing of the wellhead.

- Plant outages/turnarounds

- Grain Drying

- Emergency thawing (or chilling)

- Portable climate control

- Portable cooling solutions

Flameless heat is not merely some fad or a way to speed up heating for convenience reasons. The application can make the difference between a saleable silo of seed as opposed to pretty worthless feed. Also, faster pipe and vessel curing increases the hardening of the materials, markedly lengthening pipe life.

Speaking of which, and with no agenda other than it would good for many companies including Enterprise; lots of pipelines will be built over the next several years. The expertise necessary such as flameless heat, pipeline extension, and curing will be the basis for new technologies. Will it make pipelines 100% safe? They will be safer.

It’s all Happening.

By May 2018, six more pipeline projects were approved. Total investment will be more than C$2 billion. While small, the LNG and Trans Canada Pipeline watusi will likely raise that by ‘billions and billions. (Carl Sagan) Four of the six:

- Located in British Columbia’s Peace River Regional District, the North Montney Mainline (NMML). Consists of a 206 kilometer (km), 42-inch pipeline, two compressor stations, and 14-meter stations. Construction has begun. (Through TransCanada’s subsidiary Nova Gas).

- In February Pembina Pipeline Corporation announced it would spend $120 million on the construction of new fractionation and terminalling facilities at its Empress extraction plant, located north of Medicine Hat.

- In May, MEG Energy disclosed that work is underway on a new expansion of its Christina Lake in situ oil sands project in northern Alberta.

- Keyera Corp. said in May that it is proceeding with phase two of its Wapiti Gas Plant near Grande Prairie, Alta., in the liquids-rich Montney play.

Additional processing capacity will also be added to Keyera Corp.'s Simonette gas plant, near Grande Prairie. The company says the facility continues to achieve record processing volumes.

With world energy needs projecting to increase by 45% by 2040, Canada's LNG plans seem an easier sell than oil, oils sands, etc.; although many of those will be approved. Burns clean and is a great partner to supplement Green tech for consistent clean electricity generation.

As Alberta and BC are one, two in Natural Gas production, companies such as Enterprise (and subsidiary Arctic Therm) are at the thin edge of the wedge for infrastructure building tech. Couple that with competitive and first-class rental equipment, it is hard not to extrapolate decent growth for services over the next decade(s). Add in agricultural demands for drying and other applications and flameless heat will become ubiquitous very quickly.

Another major caveat is the US’s current tariff plan. The effect ongoing will favor renting over buying major equipment pieces.

The top 10 source countries for U.S. steel imports represented 79 percent of the total steel import volume in YTD 2018 at 12.7 million metrics tons (mmt). Canada accounted for the largest share of U.S. imports by source country at 20 percent (3.3 mmt).

Canadian companies such as Enterprise have the equipment to not only survive but thrive, due to its strategies and top shelf and innovative/custom rentals.

The Company can really no longer be viewed merely as a supplier. It is now more of a resource; With exceptional growth potential.

Oh, almost forgot. Our beer cans are affected. That’s just wrong.

Disclaimer: Nothing in this article should be considered as personalized financial advice. We are not licensed under securities laws to address your particular financial situation. No communication by our employees to you should be deemed as personalized financial advice. Please consult a licensed financial advisor before making any investment decision. This is a paid advertisement and is neither an offer nor recommendation to buy or sell any security. We hold no investment licenses and are thus neither licensed nor qualified to provide investment advice. The content in this article is not provided to any individual with a view toward their individual circumstances. Baystreet.ca has been paid a fee of one thousand eight hundred dollars for Enterprise Group advertising. This compensation constitutes a conflict of interest as to our ability to remain objective in our communication regarding the profiled company. Because of this conflict, individuals are strongly encouraged to not use this article as the basis for any investment decision. While all information is believed to be reliable, it is not guaranteed by us to be accurate. Individuals should assume that all information contained in this article is not trustworthy unless verified by their own independent research. Also, because events and circumstances frequently do not occur as expected, there will likely be differences between any predictions and actual results. Always consult a licensed investment professional before making any investment decision. Be extremely careful, investing in securities carries a high degree of risk; you may likely lose some or all of the investment.

!
Thumb 8020 monitor 200 200  png

8020 Admin

3 months

8020 Admin posted a News Item Artic Therm International (an Enterprise Group company) - Safe, Portable Heat Generation (up to 300F); With No Flame in Enterprise Group Inc.

 

How does one generate significant heat with no flame? And once done, what do you do with it? And of course, why?

Artic Therm is the largest proprietary supplier of flameless heat in Canada. And with this winter already starting (early) in the north, the all sizes of flameless heater rental units are moving out the door.

Thermal fluid heating is a type of indirect heating in which a liquid phase heat transfer medium is heated and circulated to one or more heat energy users within a closed loop system. Thermal oil, glycol, and water are common heat transfer mediums for these systems.

The units represent two Enterprise patents; one for the disc and one for the airflow design. The disc agitates the oil and creates 60% of generated heat. The rest is drawn from the operation of the diesel engine and exhaust piping within the unit.

The safety features include:

- Positive Air Shutdown (manual and automatic); set to shut down on engine RPM over-speed,

- Murphy gauges and switches for high temperature or low pressure shutdown on both engine and friction plate,

- Brushless Marine Alternators to ensure there is no source of ignition during operation. Our units are authorized to be in operation up to 7 meters to the wellhead.

Our units are authorized to be in operation up to 7 meters to the wellhead.

Oil and Gas, etc.

1. Pipeline expansion; pre-heat and expand pipe during construction

2.Tank and pipeline drying; dries

3. Curing Coatings; faster heal according to spec to ensure max strength

4. Facility maintenance; building project temp control

5. Well sites; prevent freezing of the wellhead.

- Plant outages/turnarounds

- Grain Drying

- Emergency thawing (or chilling)

- Portable climate control

- Portable cooling solutions

Flameless heat is not merely some fad or a way to speed up heating for convenience reasons. The application can make the difference between a saleable silo of seed as opposed to pretty worthless feed. Also, faster pipe and vessel curing increases the hardening of the materials, markedly lengthening pipe life.

Speaking of which, and with no agenda other than it would good for many companies including Enterprise; lots of pipelines will be built over the next several years. The expertise necessary such as flameless heat, pipeline extension, and curing will be the basis for new technologies. Will it make pipelines 100% safe? They will be safer.

It’s all Happening.

By May 2018, six more pipeline projects were approved. Total investment will be more than C$2 billion. While small, the LNG and Trans Canada Pipeline watusi will likely raise that by ‘billions and billions. (Carl Sagan) Four of the six:

- Located in British Columbia’s Peace River Regional District, the North Montney Mainline (NMML). Consists of a 206 kilometer (km), 42-inch pipeline, two compressor stations, and 14-meter stations. Construction has begun. (Through TransCanada’s subsidiary Nova Gas).

- In February Pembina Pipeline Corporation announced it would spend $120 million on the construction of new fractionation and terminalling facilities at its Empress extraction plant, located north of Medicine Hat.

- In May, MEG Energy disclosed that work is underway on a new expansion of its Christina Lake in situ oil sands project in northern Alberta.

- Keyera Corp. said in May that it is proceeding with phase two of its Wapiti Gas Plant near Grande Prairie, Alta., in the liquids-rich Montney play.

Additional processing capacity will also be added to Keyera Corp.'s Simonette gas plant, near Grande Prairie. The company says the facility continues to achieve record processing volumes.

With world energy needs projecting to increase by 45% by 2040, Canada's LNG plans seem an easier sell than oil, oils sands, etc.; although many of those will be approved. Burns clean and is a great partner to supplement Green tech for consistent clean electricity generation.

As Alberta and BC are one, two in Natural Gas production, companies such as Enterprise (and subsidiary Arctic Therm) are at the thin edge of the wedge for infrastructure building tech. Couple that with competitive and first-class rental equipment, it is hard not to extrapolate decent growth for services over the next decade(s). Add in agricultural demands for drying and other applications and flameless heat will become ubiquitous very quickly.

Another major caveat is the US’s current tariff plan. The effect ongoing will favor renting over buying major equipment pieces.

The top 10 source countries for U.S. steel imports represented 79 percent of the total steel import volume in YTD 2018 at 12.7 million metrics tons (mmt). Canada accounted for the largest share of U.S. imports by source country at 20 percent (3.3 mmt).

Canadian companies such as Enterprise have the equipment to not only survive but thrive, due to its strategies and top shelf and innovative/custom rentals.

The Company can really no longer be viewed merely as a supplier. It is now more of a resource; With exceptional growth potential.

Oh, almost forgot. Our beer cans are affected. That’s just wrong.

Disclaimer: Nothing in this article should be considered as personalized financial advice. We are not licensed under securities laws to address your particular financial situation. No communication by our employees to you should be deemed as personalized financial advice. Please consult a licensed financial advisor before making any investment decision. This is a paid advertisement and is neither an offer nor recommendation to buy or sell any security. We hold no investment licenses and are thus neither licensed nor qualified to provide investment advice. The content in this article is not provided to any individual with a view toward their individual circumstances. Baystreet.ca has been paid a fee of one thousand eight hundred dollars for Enterprise Group advertising. This compensation constitutes a conflict of interest as to our ability to remain objective in our communication regarding the profiled company. Because of this conflict, individuals are strongly encouraged to not use this article as the basis for any investment decision. While all information is believed to be reliable, it is not guaranteed by us to be accurate. Individuals should assume that all information contained in this article is not trustworthy unless verified by their own independent research. Also, because events and circumstances frequently do not occur as expected, there will likely be differences between any predictions and actual results. Always consult a licensed investment professional before making any investment decision. Be extremely careful, investing in securities carries a high degree of risk; you may likely lose some or all of the investment.

!
Thumb 0

Bob Beaty replied to the press release 8020 Admin  update in ENTERPRISE GROUP INC.

3 months

...

Thoughts on the sector? Any questions for management? Pretty apparent that Enterprise heats up the colder it gets.keyboard_arrow_downShow Post

!
Thumb 8020 monitor 200 200  png

8020 Admin

3 months

8020 Admin  posted an update in ENTERPRISE GROUP INC.

Enterprise Group (TSX:E): Time to Review and Renew

As we approach the time in the far and farther north where ice on a beard or scarf mimics a work of art, companies are gearing up for what is being heralded as a very ugly winter. Ugly is relative as you will see. Whether you subscribe to official weather services or the Farmer’s Almanac; don’t lick any exposed metal. You may be there a while as winter 2018-2019 is going to be, well, ugly.

For oil service companies, the ugly weather is good. The constituents of the sector sell critical heat, power and accommodation solutions for the farm and mine and heat and expertise.

"Ironically, Enterprise's share price is tied to the oil price," states Leonard Jaroszuk, CEO and President. "The reality is that our business of providing specialized industrial rental solutions and technologies should insulate us against that volatility. As well, the fact that we design and build specialty equipment for our clients—15 patents in place with more coming—means that we can be immediately responsive and relevant to address Government customers' unique needs, whether resource-centric or straight public infrastructure." (16.08.17)

Throughout the last year, which remained challenging for oil and oil service companies, Enterprise saw its share price hit a stand-up double moving from C$0.30 to C$0.63 January to June 2018.

The Company also hit some fantastic milestones during the same period:

  • Debt free
  • Raised asset value to C$1.01
  • Shares trading at $0.40
  • $40 million in funds available for growth (developmental, organic, acquisition)
  • Further
  • refinement of its proprietary StarChain technology.

When Enterprise Group acquired Westar Oilfield Rentals in 2014, one of the assets the company was working on was a business management software, known today as ‘STAR.' Enterprise continued to fund and upgrade the project and found itself with a proprietary asset that is critical to the profitability and cost mitigation of all of its subsidiaries.

  • STAR proprietary platform for future development and refinement
  • Task and monitoring capabilities save measurable personnel costs
  • Allows management to plan to deploy company-wide through 3 subs and future acquisitions
  • One of the Company's impressive value propositions over competitors
  • No plans to license; to remain a corporate asset
  • Not aware of any competitive software

The software tracks assets, which in itself cuts costs, utilizing the location and site ID put directly on the invoice. The system always knows where the asset is, and fleet managers confirm that on delivery.

Why Own Enterprise? Salient Points:

• Refocus to grow the lucrative industrial/resource rental business
• Cash flow positive since the beginning of 2015 downturn
• The profitable trend seems intact last three quarters
• Trades at less than half book value (C$1.01)
• Development of StarChain, a revolutionary monitoring and asset management software
• 15 proprietary patents for specialized equipment and processes
• Cost effective custom solutions
• Significant acquisition and capital expenditure
• Significant domestic growth plans

Last year the Company carefully evolved into a focused leader in the industrial rental, tracking software technology development; increasing its patent portfolio to 15.

Enterprise is not just some building with a bunch of old equipment for rent. The material is cutting edge, including a unique series of combo products (combo light/generator) and is keenly focused on the bottom line. The Company is going into, historically its biggest quarters and will, at the end of the year, will change again.

In the first half of 2018, management's efforts more than doubled the stock price. Given the state and plans of the Company and the outlook for large LNG and related contracts, Enterprise may look better now at C$0.40 than it did last year at C$0.30.

Speaking to Joel Bardwell, in charge of Technical Development at Enterprise sub-Hart Oil says that this year feels a lot like 2014 which was just before the energy sector meltdown. That could help with the fact that some snow is already swirling, has the potential to make this a great business year for Enterprise and its subs.

There's another exciting development in the sector. As oil prices rise, the devastation wrought on the oil services companies, particularly small ones appear to be reversing.

From Revenge Of The Oil Services Sector In 2018 - Forbes

Consolidation is rampant across the fragmented sector as firms scramble to keep the lights on and keep drilling.

As this rationalization plays out in 2018, it should become clear that the current producer-contractor relationship is not sustainable. The state of oversupply in the oil-services sector won't last forever. Labor is already tight, and struggling contractors can't afford to hire highly-trained personnel and re-equip without renegotiating their fees. For three years they've been unable to invest because of low oil prices. Producers seeking to ramp up will find that contractor capacity is either insufficient or altogether absent to meet rising demand. The chickens are coming home to roost.

While that quote keys on US companies, the sector is global. Oil services companies are still pretty much at the pricing mercy of their customers, not to mention their peers.

If Enterprise finds itself with all of its equipment deployed, an earlier than normal winter and rising demand, one thing is sure; prices will increase, and the boot will be on the other foot.

The oil service companies have the equipment, expertise, heat and heat systems to keep drills turning and pipelines growing.

Take those away, and it gets dodgy: 'Pay or Don't Play.'

So, what of Enterprise?

As we told you last year: Buy some. Find out.

#############

NB: Enterprise is pleased to support 8020Connect.
Investors want timely Information
Management want to keep shareholders and investors informed
Enter 8020Connect.com; Respectful, Compliant, Monitored.
Free to Join for Investors.

Disclaimer: Nothing in this article should be considered as personalized financial advice. We are not licensed under securities laws to address your particular financial situation. No communication by our employees to you should be deemed as personalized financial advice. Please consult a licensed financial advisor before making any investment decision. This is a paid advertisement and is neither an offer nor recommendation to buy or sell any security. We hold no investment licenses and are thus neither licensed nor qualified to provide investment advice. The content in this article is not provided to any individual with a view toward their individual circumstances. Baystreet.ca has been paid a fee of one thousand eight hundred dollars for Enterprise Group advertising. This compensation constitutes a conflict of interest as to our ability to remain objective in our communication regarding the profiled company. Because of this conflict, individuals are strongly encouraged to not use this article as the basis for any investment decision. While all information is believed to be reliable, it is not guaranteed by us to be accurate. Individuals should assume that all information contained in this article is not trustworthy unless verified by their own independent research. Also, because events and circumstances frequently do not occur as expected, there will likely be differences between any predictions and actual results. Always consult a licensed investment professional before making any investment decision. Be extremely careful, investing in securities carries a high degree of risk; you may likely lose some or all of the investment.

!
Thumb 8020 monitor 200 200  png

8020 Admin

3 months

8020 Admin posted a press release Enterprise Group (TSX:E): Time to Review and Renew in Enterprise Group Inc.

Enterprise Group (TSX:E): Time to Review and Renew

As we approach the time in the far and farther north where ice on a beard or scarf mimics a work of art, companies are gearing up for what is being heralded as a very ugly winter. Ugly is relative as you will see. Whether you subscribe to official weather services or the Farmer’s Almanac; don’t lick any exposed metal. You may be there a while as winter 2018-2019 is going to be, well, ugly.

For oil service companies, the ugly weather is good. The constituents of the sector sell critical heat, power and accommodation solutions for the farm and mine and heat and expertise.

"Ironically, Enterprise's share price is tied to the oil price," states Leonard Jaroszuk, CEO and President. "The reality is that our business of providing specialized industrial rental solutions and technologies should insulate us against that volatility. As well, the fact that we design and build specialty equipment for our clients—15 patents in place with more coming—means that we can be immediately responsive and relevant to address Government customers' unique needs, whether resource-centric or straight public infrastructure." (16.08.17)

Throughout the last year, which remained challenging for oil and oil service companies, Enterprise saw its share price hit a stand-up double moving from C$0.30 to C$0.63 January to June 2018.

The Company also hit some fantastic milestones during the same period:

  • Debt free
  • Raised asset value to C$1.01
  • Shares trading at $0.40
  • $40 million in funds available for growth (developmental, organic, acquisition)
  • Further
  • refinement of its proprietary StarChain technology.

When Enterprise Group acquired Westar Oilfield Rentals in 2014, one of the assets the company was working on was a business management software, known today as ‘STAR.' Enterprise continued to fund and upgrade the project and found itself with a proprietary asset that is critical to the profitability and cost mitigation of all of its subsidiaries.

  • STAR proprietary platform for future development and refinement
  • Task and monitoring capabilities save measurable personnel costs
  • Allows management to plan to deploy company-wide through 3 subs and future acquisitions
  • One of the Company's impressive value propositions over competitors
  • No plans to license; to remain a corporate asset
  • Not aware of any competitive software

The software tracks assets, which in itself cuts costs, utilizing the location and site ID put directly on the invoice. The system always knows where the asset is, and fleet managers confirm that on delivery.

Why Own Enterprise? Salient Points:

• Refocus to grow the lucrative industrial/resource rental business
• Cash flow positive since the beginning of 2015 downturn
• The profitable trend seems intact last three quarters
• Trades at less than half book value (C$1.01)
• Development of StarChain, a revolutionary monitoring and asset management software
• 15 proprietary patents for specialized equipment and processes
• Cost effective custom solutions
• Significant acquisition and capital expenditure
• Significant domestic growth plans

Last year the Company carefully evolved into a focused leader in the industrial rental, tracking software technology development; increasing its patent portfolio to 15.

Enterprise is not just some building with a bunch of old equipment for rent. The material is cutting edge, including a unique series of combo products (combo light/generator) and is keenly focused on the bottom line. The Company is going into, historically its biggest quarters and will, at the end of the year, will change again.

In the first half of 2018, management's efforts more than doubled the stock price. Given the state and plans of the Company and the outlook for large LNG and related contracts, Enterprise may look better now at C$0.40 than it did last year at C$0.30.

Speaking to Joel Bardwell, in charge of Technical Development at Enterprise sub-Hart Oil says that this year feels a lot like 2014 which was just before the energy sector meltdown. That could help with the fact that some snow is already swirling, has the potential to make this a great business year for Enterprise and its subs.

There's another exciting development in the sector. As oil prices rise, the devastation wrought on the oil services companies, particularly small ones appear to be reversing.

From Revenge Of The Oil Services Sector In 2018 - Forbes

Consolidation is rampant across the fragmented sector as firms scramble to keep the lights on and keep drilling.

As this rationalization plays out in 2018, it should become clear that the current producer-contractor relationship is not sustainable. The state of oversupply in the oil-services sector won't last forever. Labor is already tight, and struggling contractors can't afford to hire highly-trained personnel and re-equip without renegotiating their fees. For three years they've been unable to invest because of low oil prices. Producers seeking to ramp up will find that contractor capacity is either insufficient or altogether absent to meet rising demand. The chickens are coming home to roost.

While that quote keys on US companies, the sector is global. Oil services companies are still pretty much at the pricing mercy of their customers, not to mention their peers.

If Enterprise finds itself with all of its equipment deployed, an earlier than normal winter and rising demand, one thing is sure; prices will increase, and the boot will be on the other foot.

The oil service companies have the equipment, expertise, heat and heat systems to keep drills turning and pipelines growing.

Take those away, and it gets dodgy: 'Pay or Don't Play.'

So, what of Enterprise?

As we told you last year: Buy some. Find out.

#############

NB: Enterprise is pleased to support 8020Connect.
Investors want timely Information
Management want to keep shareholders and investors informed
Enter 8020Connect.com; Respectful, Compliant, Monitored.
Free to Join for Investors.

Disclaimer: Nothing in this article should be considered as personalized financial advice. We are not licensed under securities laws to address your particular financial situation. No communication by our employees to you should be deemed as personalized financial advice. Please consult a licensed financial advisor before making any investment decision. This is a paid advertisement and is neither an offer nor recommendation to buy or sell any security. We hold no investment licenses and are thus neither licensed nor qualified to provide investment advice. The content in this article is not provided to any individual with a view toward their individual circumstances. Baystreet.ca has been paid a fee of one thousand eight hundred dollars for Enterprise Group advertising. This compensation constitutes a conflict of interest as to our ability to remain objective in our communication regarding the profiled company. Because of this conflict, individuals are strongly encouraged to not use this article as the basis for any investment decision. While all information is believed to be reliable, it is not guaranteed by us to be accurate. Individuals should assume that all information contained in this article is not trustworthy unless verified by their own independent research. Also, because events and circumstances frequently do not occur as expected, there will likely be differences between any predictions and actual results. Always consult a licensed investment professional before making any investment decision. Be extremely careful, investing in securities carries a high degree of risk; you may likely lose some or all of the investment.

!

Media Relations posted a News Item Investors: Winter is Coming in Enterprise Group Inc.

Artic Therm is Ready.

Whether pro-pipeline or con, most have no idea the science and safety protocols employed when an oil or natural gas line is laid. The general consensus --that a truckload of pipe is rolled up to a ditch and dumped in is -- in a word, crazy.

Why Artic Therm?

- Since 1997, pioneers in flameless heating and pipeline thermal expansion solutions

- ATI uses portable equipment and proprietary technology to provide efficient ‘Flameless Heat’ and breathable ‘Green Air’ in remote locations that present extreme climate challenges

- Outputs of 125,000 to 3.3 million BTUs

- Blower technology provides up to 15,000 CFM (Cubic feet per minute)

- Versatility that facilitates numerous heating and thawing applications

Laying pipeline is a complex industrial dance of extreme safety measures. Not the least of which is the expansion and contraction of the pipeline sections themselves. Artic Therm (ATI) is the leader in this sector, not to mention other areas (thawing, grain drying, etc.). The Company has and continues to develop a myriad of applications for its flameless heat technology. This time of year, is when companies are organizing the equipment necessary to realize their planned infrastructure builds. Pipeline construction has a very precise set of preparatory steps.

Artic Therm specializes in pipe diameters ranging from 4 to 48 inches: And pipe lengths from a few feet to several kilometers. In the Arctic, the difference in the ambient temperature versus the temperature of the liquid flowing through can have a massive effect on its integrity. Even high school physics teaches that really hot versus really cold is a recipe for disaster for pipe not properly prepared. Relatively complex calculations are employed to determine the time and temperature necessary to expand and lengthen the pipe, which thereby reduces stresses as well as the need for numerous expansion couplings, or indeed any at all.

The process changes little with size or length; however non-insulated lines have many variables that can affect the pre-heating. ATI engineering helps to determine the section lengths which are dependent upon the pipeline scope, size and ambient temperatures. On the smaller diameter lines, the Company will utilize a drafting method to allow consistent flow and absorption of heat. Drafting involves using a heating unit to push the heat and a blower on the distal end to draw the heat.

‘Over 20 years ago, Artic Therm pioneered this technology and now has the largest fleet of flameless units in the country” stated Des O’Kell, SVP of Enterprise Group. “During the construction phase of a 79,494 m3 tank, the ATI 2500 supplied breathable heated air into the tank; which melted built up snow and ice, over 8’’(20.32cm) thick . For this size of tank, the ATI 2500 with 2,500,000 BTU, 8,500 CFM, and a maximum output of 115°C was flawless.”

500,000 Barrel Tanks•Internal temperature achieved 112°C •Average ambient temperature -15°C

The other aspect to the heating is ATI’s ‘Green Air’, which ensures that should personnel have to work in the environment, the air is contaminant free. When that pipe is installed, along with other protocols, the normal stress upon flow has been vastly reduced and the pipe is contaminant free. Normally the oil etc., is treated as well to eliminate contaminants.

Heat in the arctic is as important as water in the desert.

Safety Never Takes A Holiday

- Positive air shut down
- Murphy gauges
- Double containment
- Brushless alternators
- Operating beacon lights
- User friendly system
- GPS software

Should any onboard systems fail or approach failure, the units’ Murphy Gauges will shut the equipment down and alert the operator either onsite or off. The CFM pusher fan located near the rear of the unit then drives the clean breathable heat through the 12 or 16-inch manual outlets into the target area. The heat that the engine and exhaust produces is reclaimed and recirculated.

Keep up with the Jeeps

The purpose of heating is to see who can have the prettiest pipeline but is employed to make these crucial pieces of infrastructure as safe with the longest life possible. Pipelines are coated with a non-conductive coating. During transport and deployment, the coating can suffer anything from a large gash to an imperceptible crack, exposing the metal pipe. As with all welds, the pipe is x-rayed to both check integrity and identify other imperfections know as jeeps.

ATI’s mission is to provide an efficient flameless and breathable heat for multiple applications in remote locations and extreme climate challenges. ATI achieves this with three divisions. The first being rentals, which consists of over 150 portable tow-behind Heaters as well as several large self-contained truck mounted flameless units. ATI’s climate control technology focuses on air quality within confined spaces. And lastly, ATI projects division, that utilizes the same technology, but on a much larger scale, allows versatility for the varied and unique client specifications.

Investors Take Note. Now.

For investors, ATI and Enterprise are bearing down on a potentially record season. Quote requests are up smartly, and the company feels complete deployment of heating units is likely. The shares more than doubled this year (C$0.29-C$0.62) and have settled back to the C$0.40 per share range. Spring and early summer tend to be quieter as the Company ramps up for fall and winter; historically a reasonable time to pick up some shares.

Also, with the uncertainty of US tariffs, prices for new machines are rising as are parts. It is within the realm of certainty that all of these factors could well lead Enterprise into record revenue territory.

The one thing this tariff watusi tells us is that while always a good business call, renting likely was never so important.

Winter is Coming: Operators await.

 

Disclaimer: Nothing in this article should be considered as personalized financial advice. We are not licensed under securities laws to address your particular financial situation. No communication by our employees to you should be deemed as personalized financial advice. Please consult a licensed financial advisor before making any investment decision. This is a paid advertisement and is neither an offer nor recommendation to buy or sell any security. We hold no investment licenses and are thus neither licensed nor qualified to provide investment advice. The content in this article is not provided to any individual with a view toward their individual circumstances. Baystreet.ca has been paid a fee of one thousand eight hundred dollars for Enterprise Group advertising. This compensation constitutes a conflict of interest as to our ability to remain objective in our communication regarding the profiled company. Because of this conflict, individuals are strongly encouraged to not use this article as the basis for any investment decision. While all information is believed to be reliable, it is not guaranteed by us to be accurate. Individuals should assume that all information contained in this article is not trustworthy unless verified by their own independent research. Also, because events and circumstances frequently do not occur as expected, there will likely be differences between any predictions and actual results. Always consult a licensed investment professional before making any investment decision. Be extremely careful, investing in securities carries a high degree of risk; you may likely lose some or all of the investment.

!
Thumb 8020 monitor 200 200  png

8020 Admin

4 months

8020 Admin posted a press release Enterprise Group Announces Normal Course Issuer Bid in Enterprise Group Inc.

ST. ALBERT, AB, Aug. 17, 2018 /CNW/ - Enterprise Group, Inc. ("Enterprise," or "the Company") (TSX: E) announces that the Toronto Stock Exchange ("TSX") has accepted its notice of intention to make a normal course issuer bid to purchase outstanding common shares of the Company ("Shares") on the open market in accordance with the rules of the TSX. 

The Company is authorized to purchase up to 4,393,820 Shares under the normal course issuer bid, representing 10% of its public float, as of August 7, 2018. As of that date, there were 55,147,374 Shares issued and outstanding. The average daily trading volume of the Shares for the six months ended August 7, 2018, calculated in accordance with the rules of the TSX, was 37,550 Shares. Enterprise is subject to a daily repurchase limit of 25% of such volume, being 9,387 Shares, except where such purchases are made in accordance with the block purchase exemption under TSX rules.

Enterprise intends to commence the normal course issuer bid on August 21, 2018 and terminate the bid on August 20, 2019 or such earlier time as the bid is completed or terminated at the option of the Company. All Shares purchased under this bid will be purchased in the open market through the facilities of the TSX or alternative Canadian trading systems at the prevailing market price at the time of such transaction. Shares acquired under the bid will be cancelled. During the past 12 months, the Company has purchased an aggregate of 505,000 Shares at a weighted average price of $0.4225 per Share. The previous normal course issuer bid expired on June 11, 2018.

Enterprise's Board of Directors has authorized the normal course issuer bid as it is believed that the purchase of the Shares pursuant to the normal course issuer bid is in the best interest of shareholders as the Shares may become available at prices that make an attractive investment and appropriate use of the Company's funds. 

About Enterprise Group, Inc.

Enterprise Group, Inc. is a consolidator of services to the energy sector. The Company's focus is primarily specialized equipment rental. The Company's strategy is to acquire complementary service companies in Western Canada, consolidating capital, management, and human resources to support continued growth. More information is available at the Company's website www.enterprisegrp.ca. Corporate filings can be found on www.sedar.com

Forward-Looking Information

This news release may contain certain forward-looking information as defined under applicable Canadian securities legislation, that is not based on historical fact, including without limitation statements containing the words "believes", "anticipates", "plans", "intends", "will", "should", "expects", "continue", "estimate", "forecasts" and other similar expressions. In particular, this news release includes forward-looking information relating to the Company's intention to purchase Shares pursuant to the normal course issuer bid, the number of Shares to be purchased, the timing of such purchases and the impact of such purchases on the value of the remaining Shares. Actual results, events or developments could be materially different from those expressed or implied by these forward-looking statements. There is no assurance that any of the events or expectations will occur or be realized. By their nature, forward-looking statements are subject to numerous assumptions and risk factors including those discussed in the Company's Annual Information Form and most recent MD&A which are incorporated herein by reference and are available through SEDAR at www.sedar.com. The forward-looking statements contained in this news release are expressly qualified by this cautionary statement and are made as of the date hereof. The Company disclaims any intention and has no obligation or responsibility, except as required by law, to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.

SOURCE Enterprise Group, Inc.

View original content: http://www.newswire.ca/en/releases/archive/August2018/17/c1942.html

For questions or additional information, please contact: Leonard Jaroszuk: President & CEO, or Desmond O'Kell: Senior Vice-President, contact@enterprisegrp.ca, 780-418-4400Copyright CNW Group 2018

!
Thumb 8020 monitor 200 200  png

8020 Admin

4 months

8020 Admin posted a press release Enterprise Group Announces Results for Second Quarter 2018 in Enterprise Group Inc.

St. Albert, Alberta (FSCwire) - Enterprise Group, Inc. (the “Company” or “Enterprise”) (TSX: E), a consolidator of services to the energy sector; focused primarily on specialized equipment rental; today released its Q2 2018 results.

(1) Identified and defined under “Non-IFRS Measures”.

(2) In March 2018, the Company closed a transaction to divest substantially all the assets of CTHA. The net operations of CTHA, including the prior period, are presented as a single amount in the consolidated statements of income (loss) and comprehensive income (loss)

• The Company’s operations are subject to seasonality and historically experiences lower activity in the second quarter. The second quarter of 2018 was no exception with spring break thaw and road bans slowing activity. Many customers also chose to delay the re-start of operations after spring thaw and only began renting equipment in June and July.

• Despite the reduced activity during the second quarter, for the six months ended June 30, 2018, the Company generated positive cash flow from operations of $1,857,387 and over the same period the Company purchased and cancelled 310,500 shares valued at $142,100. Enterprise believes its stock remains undervalued and will continue to re-invest positive cash flow to buy-back shares to enhance shareholder value. Enterprise is in the process of obtaining approval for a normal course issuer bid to purchase up to 10% of its outstanding stock.

• Over the last 2 years, the Company has made significant improvements to its statement of financial position and overall total debt and continues to make regular debt repayments. At June 30, 2018, after adjusting for goodwill and deferred taxes, the Company has assets more than total debt of approximately $50,000,000. Enterprise will continue to look for opportunities to improve its financial position and opportunities that will allow the Company to diversify and expand.

• For the six months ended June 30, 2018, Enterprise added $2,267,114 of capital assets to complement its rental fleet. Most of the equipment added, was at the request of, or in consultation with Enterprise’s customers, and as a result, these additions were generating revenue shortly after acquired. Also, in June 2018, Enterprise acquired property that it was previously renting in Pouce Coupe, British Columbia. Ownership of the Pouce Coupe property will allow for diversification and expansion in that region to better service customers.

• Revenue for the three months ended June 30, 2018, of $3,240,620 decreased by $991,832 or 23% when compared with the prior period. Revenue for the six months ended June 30, 2018, of $10,050,856 decreased by $1,196,875 compared to the prior period because of the slower second quarter as explained above.

• Gross margin for the three months ended June 30, 2018, of $(1,312,114) or (40%), decreased compared to the prior period and EBITDA for the same period decreased to $(2,181,411). The decrease in gross margin and EBITDA are consistent with decreased revenue as explained above. During the second quarter, Enterprise was successful maintaining its existing customer base, however customer demand was for lower margin services compared to demand in the prior period. Management is committed to maintaining a high quality of service provided to its customers to position the Company to benefit from future increases in activity levels and additional work from large project approvals. Gross margin for the six months ended June 30, 2018, was $813,380, a decrease of $2,359,144 from the prior period. The decrease is due to slower second quarter activity as explained above.

Outlook

The second half of 2018 continues to look positive and we anticipate growth throughout the industry. The restart of the Site C Damn project in Fort St. John, B.C., is expected to begin in 2018, the purchase of the Trans Mountain pipeline by the Federal Government has increased the likelihood of this project proceeding, and the final decision on the LNG Canada project is also likely by the end of 2018.

As a result of ongoing discussions with customers, management’s confidence is building in its outlook for the Company and its services. Management remains confident in its strategic and operational plans and has a seasoned leadership team to guide the Company. Enterprise is committed to its customer base throughout the Western Canadian provinces and strives to provide excellent customer service and is excited about its future prospects.

About Enterprise Group, Inc.

Enterprise Group, Inc. is a consolidator of services to the energy sector. The Company’s focus is primarily on specialized equipment rental. The Company’s strategy is to acquire complementary service companies in Western Canada, consolidating capital, management, and human resources to support continued growth. More information is available at the Company’s website www.enterprisegrp.ca. Corporate filings can be found on www.sedar.com.

For questions or additional information, please contact:

Leonard Jaroszuk, President & CEO, or
Desmond O’Kell, Senior Vice-President
780-418-4400
contact@enterprisegrp.ca

Forward-Looking Information

Certain statements contained in this news release constitute forward-looking information. These statements relate to future events or the Company’s future performance. The use of any of the words "could", "expect", "believe", "will", "projected", "estimated" and similar expressions and statements relating to matters that are not historical facts are intended to identify forward-looking information and are based on the Company's current belief or assumptions as to the outcome and timing of such future events. Actual future results may differ materially. The Company's Annual Information Form and other documents filed with securities regulatory authorities (accessible through the SEDAR website www.sedar.com) describe the risks, material assumptions and other factors that could influence actual results and which are incorporated herein by reference. The Company disclaims any intention or obligation to publicly update or revise any forward-looking information, whether as a result of new information, future events or otherwise, except as may be expressly required by applicable securities laws.

Non-IFRS Measures

The Company uses International Financial Reporting Standards (“IFRS”). EBITDA is not a measure that has any standardized meaning prescribed by IFRS and is therefore referred to as a non-IFRS measure. This news release contains references to EBITDA. This non-IFRS measure used by the Company may not be comparable to a similar measure used by other companies. Management believes that in addition to net income, EBITDA is a useful supplemental measure as it provides an indication of the results generated by the Company’s principal business activities prior to consideration of how those activities are financed or how the results are taxed. EBITDA is calculated as net income excluding depreciation, amortization, interest, taxes and stock based compensation.

To view the original release, please click here

Source: Enterprise Group Inc. (TSX:E)

News Provided by FSCwire via QuoteMedia

!
Thumb 0

Bob Beaty

5 months

Bob Beaty posted a News Item LNG Development 2.0 Could be Generational; Enterprise Group (TSX:E) in Enterprise Group Inc.

 

LNG Development 2.0 Could be Generational; Enterprise Group (E:TSX)

Not long ago, in a land not far from here or there, the Canadian Resource sector took two near fatal mortar rounds to the chest. The first was the oil price decline that left the sector neutered in 2015 with many casualties. In the midst of that recovery, the jubilation for LNG exports to Asia – perceived saviour of the industry—was derailed as major partners went to ground.

One theory that might be more prudent this time is to put early investment dollars into equipment and infrastructure companies that are gearing up.

As a proxy for this growth, Enterprise Group (E:TSX), the premier industrial rental company in Western Canada comes into this burgeoning market aggressively and debt free: The Company appears to be a substantial proxy and winner as several huge potential developments unfold in its target area. As well, the Company has significant access to funds for buying equipment, complementary companies or both. Enterprises history is to buy accretive assets, utilized them for several years to generate significant revenue and then sell at a profit.

As the LNG 2.0 growth commences, Enterprise is known as a one stop shop very well known by the industry as having exceptional equipment coupled with wide ranging custom solutions. Not to mention the plaudits it gained by working with clients to help in the downtimes. Not everything is about money.

And at C$0.45 trades at less than ½ book value of C$1.01.

Why Own Enterprise? Salient Points:

  • • Refocus to grow the lucrative industrial/resource rental business
  • • Cash flow positive since the beginning of 2015 downturn
  • Profitable trend seems intact last three quarters
  • • Trades at less than half book value (C$1.01)
  • Development of StarChain, a revolutionary monitoring and asset management software
  • • 15 proprietary patents for specialized equipment and processes
  • • Cost effective custom solutions
  • • Significant acquisition and capital expenditure
  • Significant domestic growth plans

 

Third Time the Charm

Due to the vagaries of the sector, these products and services are always needed. If it all comes together at once—LNG Canada commences and oil stays reasonable the renaissance of multiple sectors is or could soon be apparent.

"If you think back three, four years ago when we all had LNG euphoria, that there was a slew of projects ahead of us, we certainly didn't see any boxes being ticked to the same degree that they are today," stated Horizon North Logistics Inc. (HNL:TSX ) Chief Financial Officer Scott Matson. "Our view internally is that the flag in the ground was Petronas buying in. We have a hard time believing they would spend an ounce of time, energy or a dollar unless they had a clean line of sight to the project moving ahead."

LNG Canada is a joint venture between Royal Dutch Shell Plc, PetroChina Co. Ltd, Mitsubishi Corp and Korea Gas Corp. TransCanada Corp will build the pipeline.

The Centre of the Universe?

In St. Albert near Edmonton Alberta, there were several reasons the Enterprise C-Suite team worked to save, expand and grow Enterprise Group. During the almost fatal resource decline mid-decade, one main reason was the new prospect of the significant resurgence of massive LNG spending.

The reasons for this renewed activity years on --after Pacific Northwest LNG populated mainly by Malaysia's Petronas cancelled participation in 2017. Always watch the left hand as in a feat of corporate legerdemain it is now a major partner in the phoenix-like reanimation of LNG Canada. The workforce will not be a vast majority of TFW (temporary foreign workers) which was a major plank of the previous plan, but the vast majority (approximately 95%) Canadian.

" The potential for the development of LNG to announce and go ahead in the fall is roughly an 8 out of 10," stated Des O'Kell SVP of Enterprise. " Related activity is apparent from Kitimat to Fort St. John; negotiations with First Nations, equipment plans and office leasing. All of this is against a backdrop of high condensate prices to make the bitumen flow effectively. The reality is that early exposure to this development trend is key; with an eye to commodity prices. Opening a valve to Asia would very simply provide massive growth of Canada's energy exports."

To give some perspective, Alberta's Black Diamond (BDI: TSX) announced to a contingent $42.5 million camp contract in concert with indigenous partnerships. The landscape is getting thicker with a growing list of monies to be spent and plans to be executed. Houston-based Civeo Corp (NYSE: CVEO) has already been awarded conditional contracts for a 440-bed permanent facility at Kitimat and a 4,500-bed temporary camp for the export terminal construction phase.

Kitimat’s Haisla Nation has made its support apparent through a letter to the NDP from Chief Councillor Crystal Smith:

Unlike others who think the answer is simply ‘no’ to development, we believe in balance between the economy and the environment. Projects can be built right. A project like LNG Canada provides the right balance for us, being a potential major employer and the lowest CO2 emitting LNG facility in the world. We’ve spent more than a decade speaking with LNG proponents to emphasize what’s important to us in our communities and we’ve enjoyed the debate which has led us to today.”

BC Opposition is also onside. Former BC Liberal LNG Minister Rich Coleman stated; "It would get a product we have a huge amount of, we have a 150-year supply of natural gas and would allow us to ship it to China and other countries. Shipping to China would help with climate issues and everything else."

LNG has much going for it, not the least of which, along with massive supplies is, no apology to Trump, the natural replacement for coal. It's also important to realize the Trump factor which seems that he could do something ridiculous that could help or hurt the resource sector. He could do nothing with the same result. There will be no in between.

From the Financial Post: "Those LNG markets are turning around, says Shell's 2018 LNG outlook. It found the market has defied expectations, growing by 29 million tonnes in 2017."Based on current demand projections, Shell sees a potential for a supply shortage developing in the mid-2020s, unless new LNG production project commitments are made soon."

So, what do we get? We unlock a giant-killing amount of Nat gas, open up LNG markets to lessen dependence on the US. As well as essential jobs created for decades and the prospect of further projects. Considerable interaction with First Nations as substantive partners. Get bitumen flowing to markets. This situation is not merely some ‘nice little resource deal.' It is an entirely and possibly multi-generational expansion that, until alternatives come online, provides a viable and cleaner source of power that of coal, oil, etc.

After the last two go-arounds this decade, trepidation would likely be an apt description. But as any risk-taking investor will tell you; Fortune Favors the Bold and merde happens.

Faites vos jeux, mes amis.

!
Thumb 0

Bob Beaty

5 months

Bob Beaty posted a News Item Enterprise Group (TSX:E) Brings the Heat to Farmers and Investors in Enterprise Group Inc.

From a farmer’s grain bin to the massive reaches of the frozen north of Canada, where virtually every fuel and metal on Earth is extracted, what is the most sought-after commodity?

Heat. Particularly Flameless Heat.

A couple of years ago, Artic Therm (ATI)-- a wholly owned subsidiary of Alberta-based Enterprise Group (E: TSX) began expanding applications for its flameless heat business. That gamble has resulted in roughly a 25% growth in business year over year. (Ask any fireman and he will tell you fighting a fire in freezing weather is the ultimate nightmare).

With approximately 150 units, these robust and versatile units from retail size to those large enough to heat and condition massive lengths of pipelines and require an operator 24/7.

Hands up! Who Likes Wet Grain?

No one.

Drying grain, thawing frozen equipment, heating a barn or living quarters or prepping a pipeline section; it is pretty much the only economical way to keep things warm and dry. Temperatures that can reach minus 50, and that’s before the addition of the almost constant deadly wind chills.

Let’s chat about Grain Drying.

The traditional process; combine, bin, remove, dry with a natural gas dryer. Downsides? Time and portability. The new way, combine, bin, turn on aeration fan, hook up Artic Therm Dryer. Each grain has or is reduced to an acceptable level of moisture. The faster the excess can be removed, the longer the quality and salability are maintained. Check out the chart below and the nifty truck pic:

Weight of water in barley at various moisture contents

Utilizing one of Artic Therm’s 150 flameless heaters, with maximum heat ranging from 500K btu to just over 3 million btu, the goal is to add the dryer and upping the efficiency of the bin’s aeration fan. By speeding up drying by a point (1%) a day, the process is not only cost effective but gets the grain to market faster thereby securing better prices. The barley chart above delineates the moisture reduction.

As well, since grain can be binned all over a large farm, portability is critical. The stakes are high; if not done correctly, a lucrative crop will quickly be reduced to worthless seed.

What are the costs per bushel for this grain drying?

With a monthly rental cost in the low four figures, the cost of retaining quality top price grain is worth the incremental heating cost, which works out to pennies a bushel. If the process gets the good product to market faster, even slightly, it’s a small price to pay.

Again, this is probably best illustrated with an example calculation using several assumptions. Keep in mind that this example includes fuel costs only and does not include the additional costs of labor, electricity, grain handling, depreciation, and other less direct costs.

- 1 gigajoule (GJ) = 1,000,000 BTU (1 GJ/1,000,000 BTU) 
- Natural gas costs $5/GJ
- Weight of water to remove: 9.6 lb. - 7.1 lb. = 2.5 lb./bu
- 2.5 lb./bu X 2000 BTU/lb. = 5000 BTU/bu needed
- $5/GJ X 1GJ/1,000,000 BTU X 5000 BTU/bu = $0.025/bu

Take out the Nat Gas portion and drying costs per bushel drop dramatically

“The drying concept is not actually to blow massive amounts of heat into the grain but to make the aeration fans in the bins more efficient,” states Desmond O’Kell SVP of Enterprise. “While an aeration fan will eventually dry the grain, and/or with the use of expensive natural gas, our units vastly shorten drying time and more cost-effectively allow our client to get the best or desired price for the crops whether going to market immediately or resting in a grain silo. Like most products at our subsidiaries, management keeps assets in top shape and rented. That means coming up with a myriad of uses that both maximize rental time and ultimately revenues.”

Why Should Investors Care About Wet Grain?

They shouldn’t. They should care about dry grain.

 

With significant growth rates, ATI is quickly educating farmers to eschew their healthy and usually wise resistance to new processes.

“Once a cereal crop is harvested, it may have to be stored for a period before it can be marketed or used as feed or seed. The length of time cereal can be safely stored will depend on the condition it was harvested, and the type of storage facility being utilized. Grain binned at lower temperatures and moisture contents can be kept in storage for longer periods of time before its quality will deteriorate. The presence and build-up of insects, mites, molds and fungi, which are all affected by grain temperature and grain moisture content, will affect the grain quality and duration of grain storage.” (Alberta Agriculture and Forestry)

Bottom Line

Using heat to make the drying process more efficient is a relatively new process but quickly becoming an impressive profit centre. There are very few companies who have made an ATI size commitment and the Company is arguably the most significant player. Even ATI/Enterprise don’t know the exact size of what is undoubtedly a massive market. The Company is confident that as efficacy of the process spreads, the current and initial 25% year over year growth rate should climb dramatically. From an idea born at ATI to generate revenues during the 2015 downturn, grain drying is looking to become a significant revenue generator; along with all the other necessary uses of this unique flameless application.

Harvest is looming, and the Company is already seeing increased quote requests over last year.

Farmers and investors are not dissimilar. Those that are successful watch over their investments and find the best ways to maximize revenue and profits. It’s healthy that both are somewhat skeptical of new processes, but as Grain Drying is already a success and has potentially a massive growth path, it will become mainstream soon.

Almost forgot: Using the traditional drying methods, the aeration fan pulls out the moisture which tends to gather on the inside roof of the bin; meaning the drying takes longer without an ATI product. As a result, the traditional process can result in the first few feet of the top grain becoming wet, moldy and uneconomic. With the dryer combined the aeration fan(s), the result is a much higher volume of dry, saleable grain.

Disclaimer: Nothing in this article should be considered as personalized financial advice. We are not licensed under securities laws to address your particular financial situation. No communication by our employees to you should be deemed as personalized financial advice. Please consult a licensed financial advisor before making any investment decision. This is a paid advertisement and is neither an offer nor recommendation to buy or sell any security. We hold no investment licenses and are thus neither licensed nor qualified to provide investment advice. The content in this article is not provided to any individual with a view toward their individual circumstances. Baystreet.ca has been paid a fee of one thousand two hundred dollars for Enterprise Group advertising. This compensation constitutes a conflict of interest as to our ability to remain objective in our communication regarding the profiled company. Because of this conflict, individuals are strongly encouraged to not use this article as the basis for any investment decision. While all information is believed to be reliable, it is not guaranteed by us to be accurate. Individuals should assume that all information contained in this article is not trustworthy unless verified by their own independent research. Also, because events and circumstances frequently do not occur as expected, there will likely be differences between any predictions and actual results. Always consult a licensed investment professional before making any investment decision. Be extremely careful, investing in securities carries a high degree of risk; you may likely lose some or all of the investment.

News Provided by Livemoney via QuoteMedia

!