Eco-Stim Energy Solutions (“ESES”, “Eco-Stim”, or “Company”) is an environmentally focused oilfield service and technology company providing well stimulation and completion services to oil and gas producers drilling in the rapidly expanding international and U.S. unconventional shale markets. In addition, Eco-Stim offers technologies which can be used in conjunction with well stimulation to decrease the number of stages stimulated in shale plays through a unique process that predicts high-probability production zones while confirming those production zones using the latest generation of down-hole diagnostic tools. Moreover, to improve operator efficiency and reduce costs, Eco-Stim offers its clients completion techniques that can dramatically reduce horsepower requirements, emissions, surface footprint, and water usage. Eco-Stim seeks to deliver well completion services with better technology, better ecology, and significantly improved economics for unconventional oil and gas producers worldwide.

At inception, ESES provided well stimulation and completion services to oil and gas operators in Argentina, a country which contains one of the world’s largest shale oil and gas resources. In early 2017, the company made a strategic decision to enter the U.S. market and now has two contracts operating from its base in in northern Oklahoma. The company expects that nearly 80% of its estimated 2018 revenue will now come from the U.S.

In Argentina, the government determined that the development of its vast resources is of highest national priority and has established natural gas prices that are designed to incentivize continued investment. The company has signed a two-year contract to provide well stimulation and ancillary services to the largest operator in the country.

With the expansion of operations in Oklahoma with two one-year contracts in place, and the new 2-year contract in Argentina, ESES has the potential to dramatically increase its annual revenue run rate by the beginning of the fourth quarter of 2017. Five analysts have buy/outperform ratings on ESES, with target prices ranging as high as $3.00 a share.

  • ESES generated $8.5 million in 2Q17, an increase of 233% over 1Q17 and 265% over 2Q16
    • Company set monthly record of $5 million of revenue in July 17; executed over 108 stages
    • Secured $43 million in growth capital in July 17 to fund additional equipment needed to support all three new contracts
    • Eliminated $41 million in long-term debt

  • Technology-driven oilfield services company focusing on fast-growing, higher-margin international shale operations in Argentina
    • Company expected to acquire 50,000 HHP of additional equipment; extending total HHP to 150,000 HP
    • The Company currently has two crews in the field with 23,000 HHP in Argentina and one active crew in OK. The second OK crew should be active in early 4Q 2017, giving the potential to double annual revenue run rate as compared to July 2017

  • Company begins operations in Oklahoma with established US exploration and production company
    • Company signs second contract to double operations in Oklahoma

  • Company operates in Vaca Muerta, one of the world’s largest and most active international shale opportunities
    • Argentina government supports gas prices at $7.50/mcf
    • YPF (Argentinian state-owned enterprise) is a key customer; YPF is expected to spend $37 billion in oil and gas exploration in Argentina over the next five years
    • Exxon, Shell, BP Chevron and Total are also major players in Vaca Muerta

More Information | Company Website


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