Today's Conference Call with GasFrac Management

Yesterday, I wrote about the second quarter earnings report from GasFrac Energy Services (GFS in Canada and GSFVF on the pink sheets), and I said that I was looking forward to today's conference call to get more detail on the prospects moving forward.  The call really did not give much more in the way of clarity about the company's expectations for the second half of the year.  Nevertheless, what the call did provide was another example of the steady nature of the people now leading GasFrac.  The calls was essentially all Jim Hill, and he came off very well.  Listening, one no longer had the impression that GasFrac was selling snake oil, something that was all to frequent in the past.  Even better, Hill clearly seemed to know his subject matter.

There was no major news in the call at all.  Even so, it provided a major confidence boost in the prospects for the company.  It seems that one can safely assume that the third quarter should exceed the revenue of the second quarter somewhat and that the fourth quarter should be even better.  These expectations mean that GasFrac should return to profitability as we move towards the end of the year.  Even better, for the first time in a long time it looks like a year from now things will be substantially improved from where they are now.

Right now, the stock is selling at $1.90.  I rate the stock as a hold, but I think that there is a significant chance of growth that could send the stock price up by at least 30% during the next year. 

DISCLOSURE:  we are long GasFrac stock.