If you the type of investor that likes to invest in a company before it becomes a household name then I have good news for you. I’ve been looking at two small energy companies that are both compelling investment opportunities. Both have solid business models that could offer better long-term returns than larger rivals, which is why you might want to dig a little deeper into each to see if either is right for you.
1. C&J Energy Services Inc (NYSE:CJES)
While you’ve probably heard of top oil-field service company Halliburton Company (NYSE:HAL) , you might not be all that familiar with C&J Energy Services Inc (NYSE:CJES). Whereas Halliburton Company (NYSE:HAL)’s reach is global and its portfolio of services vast, C&J Energy Services Inc (NYSE:CJES) does one thing and does it very well. The company is a premium provider of hydraulic fracturing services with a focus on complex and technically demanding well completions. The company is a leader in helping exploration and production companies extract oil and gas from the hard to reach shale basins found on the map below:
While the company is looking to expand as new basins emerge as well as grow its business internationally, its niche is U.S.-based shale plays. It’s a niche that has served the company well as its revenue, adjusted EBITDA, and operating cash flow have all grown by a triple-digit compound annual rate since 2009. As oil and gas production continues to expand stateside, C&J Energy Services Inc (NYSE:CJES) offers faster domestic growth as well as more upside from future international investment opportunities than Halliburton Company (NYSE:HAL), which could yield excellent long-term returns to investors.