ChampionX (CHX), mcap=$4bn, price $19.67 vs $24.33

– Chicken energy play’ with limited exposure to correction in oil prices.
– Set to benefit from higher global oil production.
– Oilfield service/equipment provider.
– Revenues are driven by oil production rather than new investment by O&Gs.
– Much more steady business than the more cyclical oilfield services such as pumping, drilling, etc.

– Expected to generate $400-450m FCF in 2023, putting the stock at a 9% FCF yield.
– Set to compound at mid-teens to 20% over the next few years.

Exp. gain: 15-20%.

Full $CHX write-up (free guest account required):

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