Secure Energy Services Inc
TSX:SES
Secure Energy Services Inc
Secure Energy Services Inc. operates within the intricate world of midstream and environmental solutions in the oil and gas industry, carving out a distinct niche by mingling traditional services with innovative environmental stewardship. Born out of the pressing need to manage the by-products of energy production sustainably, Secure Energy offers a suite of services that includes oilfield waste management, recycling, and water treatment solutions, all essential for modern energy companies seeking to reduce their environmental footprint. The company’s business model hinges on providing comprehensive and compliant solutions for the treatment and disposal of waste materials, enabling its clients to focus on extracting energy while Secure handles the rest. This approach not only mitigates environmental impact but also helps companies meet increasingly stringent regulatory requirements.
While adapting to the shifting energy landscape, Secure Energy Services has cultivated a dual-stream revenue model anchored in both its core environmental services and essential midstream processing infrastructure. The company operates an extensive network of facilities strategically located to optimize the logistics of gathering, processing, and transporting oilfield waste and crude oil. By offering integrated midstream services, including oil processing, recovery, and marketing, Secure Energy capitalizes on efficiencies and economies of scale that enhance profitability. These facilities enable the recovery and resale of valuable hydrocarbons, effectively turning waste into a revenue stream while optimizing returns for the company and its clients. As the energy sector continues to evolve, Secure Energy stands poised at the intersection of necessity and innovation, providing critical solutions that support sustainable development in a resource-heavy industry.
Secure Energy Services Inc. operates within the intricate world of midstream and environmental solutions in the oil and gas industry, carving out a distinct niche by mingling traditional services with innovative environmental stewardship. Born out of the pressing need to manage the by-products of energy production sustainably, Secure Energy offers a suite of services that includes oilfield waste management, recycling, and water treatment solutions, all essential for modern energy companies seeking to reduce their environmental footprint. The company’s business model hinges on providing comprehensive and compliant solutions for the treatment and disposal of waste materials, enabling its clients to focus on extracting energy while Secure handles the rest. This approach not only mitigates environmental impact but also helps companies meet increasingly stringent regulatory requirements.
While adapting to the shifting energy landscape, Secure Energy Services has cultivated a dual-stream revenue model anchored in both its core environmental services and essential midstream processing infrastructure. The company operates an extensive network of facilities strategically located to optimize the logistics of gathering, processing, and transporting oilfield waste and crude oil. By offering integrated midstream services, including oil processing, recovery, and marketing, Secure Energy capitalizes on efficiencies and economies of scale that enhance profitability. These facilities enable the recovery and resale of valuable hydrocarbons, effectively turning waste into a revenue stream while optimizing returns for the company and its clients. As the energy sector continues to evolve, Secure Energy stands poised at the intersection of necessity and innovation, providing critical solutions that support sustainable development in a resource-heavy industry.
EBITDA Growth: SECURE delivered full year adjusted EBITDA of $501 million, up 5% year-over-year, and Q4 EBITDA of $135 million, up 15% YoY.
Resilient Business Model: About 80% of EBITDA comes from recurring, infrastructure-backed volumes, providing stability even with commodity price volatility.
Shareholder Returns: Returned $373 million to shareholders in 2025, repurchasing nearly 19 million shares (~8% of outstanding) and increasing the dividend by 5% for 2026.
Growth Investments: Deployed $138 million in organic growth capital in 2025—well above the original plan—mainly for produced water infrastructure and metal recycling optimization.
Metal Recycling Headwinds: U.S. tariffs on finished steel cut Canadian demand; SECURE pivoted 90% of scrap volumes to U.S. markets, with logistics improvements expected to drive recovery in 2026.
2026 Guidance: Provided adjusted EBITDA guidance of $520–550 million for 2026, supported by contracted assets and stable production activity.
Accounting Change: Adopted a new policy to net commodity contracts within revenue for clearer reporting, with no impact on overall profit or cash flow.
Strong Cash Flow: Discretionary free cash flow conversion remained above 50% of adjusted EBITDA, despite a modest YoY decline due to higher interest and taxes.
Capex Outlook: 2026 organic growth capital expected at $75 million, with room for additional projects and tuck-in M&A.
