Clarus Securities Inc. analyst Stephen Kammermayer is initiating coverage on Essential Energy Services Ltd. (ESN-T2.360.020.85%) with a “buy” recommendation, citing its solid market share and strong balance sheet.

Essential owns Western Canada’s largest coil tubing service rig fleet and has recently expanded into Colombia. Its fastest-growing offering, the Tryton Mutli-Stage Fracturing System, is increasingly in demand as horizontal drilling and multi-stage completions increase in popularity in the oil patch. Mr. Kammermayer says the company’s balance sheet provides it the flexibility to either add to its capital budget as opportunities arise, or further return capital to shareholders. It recently initiated a dividend policy, paying 2.5 cents per share quarterly, for a current yield of 4.3 per cent.

Upside: Mr. Kammermayer set a price target of $3.50

_______(from the Globe and Mail)