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$ALYE - Next Oil Play to Explode ...

- Completes successful internal restructuring
- All SEC filings brought current in Nov.
- Assets: $36 million
- Liabilities: Only $9 million
- Outstanding shares: 13.8 million (close to 80% insider owned)
- Enterprise Value/EBITDA (Takeover Value): $7.35 pps

"Aly Energy Services and its subsidiaries provide equipment and services essential to the drilling and development of oil and gas resources, including mud delivery, solids control, fluid management, and directional drilling and measurement-while-drilling services. The Company serves the Permian Basin (in Texas and New Mexico), Eagle Ford Shale, Utica Shale, Marcellus Shale, Woodford Shale, Granite Wash, Mississippian Lime, and Tuscaloosa Marine Shale. ”

The following link provides a map of the Basins nationwide they do business in. http://www.alyenergy.com/about

The company was started in mid 2012 and was SEC compliant by March of 2013. Between March of 2013 and September of 2017, the company has grown their asset base from $293k to well over $35 million with current liabilities at $8.9 million.

Their YOY revenues for nine months ending Sept. of 2017 have increased by just over 25% as reported at $11,179,000 with an eps. of .03.

Founder, Micki Hidayatallah, also founded Allis-Chalmers Energy Inc. (ACEI) in 2001. In 2008 ACEI was named by Fortune as the 3rd fastest growing company in the USA, ranking #1 in revenue growth. Mr. Hidayatallah later sold the company for $1.1 billion in 2011.

Mr. Hidayatallah, being in his mid 70’s, stepped down around May of this year. Shortly after the company became delinquent in their filings and the opportunity to enter at rock bottom prices opened.

Between September and October of this year and since the company appointed Mr. Shauvik Kundagrami as CEO, the company has again become current and SEC compliant.

Mr. Shauvik Kundagrami has been Chief Executive Officer at Aly Energy Services, Inc. since May 01, 2017 and serves as its Director.

Mr. Kundagrami also served as co-head of the energy group at RBC for the prior 10 years. https://www.rbccm.com/en/about-us/history.page
 
http://www.alyenergy.com

$ALYE Filings Highlights:

During the three months ended September 30, 2017, the average U.S. land-based rig count was over 900 compared to approximately 450 for the three months ended September 30, 2016. The substantial increase in rig count was heavily concentrated in Texas, particularly in the Permian Basin, and our operations in Texas expanded significantly year-over-year.

Micki Hidayatallah, the Chairman and CEO of the Company stated: “In 2016, Aly Energy felt the impact of the greatest and longest recession in oilfield activity in the last 20 years. We stayed true to our vision and survived the intense volatility of the cycle. We initiated a 3-prong strategy of cutting costs, maintaining market share, and preserving liquidity.
 
We never sought protection from our creditors through a bankruptcy proceeding and, thanks to the loyal support of our investors, a related party was formed to buy our senior secured debt and leases from Tiger. In conjunction with this transaction, we simplified our balance sheet through the conversion of all outstanding preferred stock, subordinated debt and contingency payments into common equity. Today, all of our debt is held by a related party and we have cash in the bank to meet our commitments in 2017 even if we do not see further improvements in the market until 2018. In 2018, we believe that our customers’ costs will be lowered sufficiently by new technology which will result in increased activity in all forms of drilling, completion and production in the domestic shale basins.
 
Our long-term business strategy still includes growth through the acquisition of other businesses. Currently, we believe that there are numerous acquisition candidates which would be attractive to us and would add value to the Company and we are considering all of these options.
 
It is a great privilege for me to be part of the management of Aly Energy and I want to thank the entire management team and all our dedicated and committed employees for their integrity and, most of all, their loyalty. The acquisition of the senior secured debt and capital leases by a related party and the financial restructuring of the Company would not have been possible without the determination and creativity of the entire Aly Energy team.”