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Complete Production Services, Inc.

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The energy play is back as drilling has picked up across North America. Complete Production Services, Inc. (CPX) has gone from an earnings loss in 2009 to big profit in 2010. Despite shares surging over the course of the last year, CPX still trades at just 10.7x forward estimates.

Complete Production Services provides oilfield services which focus on the completion and production phases of oil and gas wells.

It has a big presence in the unconventional oil and gas plays in North America, including the Bartlett Shale, among others as it has expertise in horizontal completions.

Complete Production Services Crushed It Again in the Third Quarter

On Oct 20 Complete Production surprised on the third quarter estimate by a wide margin of 35.5%. It has surprised, on average, by 178% over the last 4 quarters. Those are some big earnings surprises.

You can see that the company has put together a nice earnings surprise streak over the last 5 quarters, which has coincided with a rebound in the share price.

Earnings per share were 42 cents compared with the Zacks Consensus of 31 cents. The company lost 69 cents in the same period a year ago.

Revenue rose 82% to $361.5 million from $188.7 million a year ago. It also increased 16% from the second quarter of 2010.

In the third quarter, the company deployed its first pressure pumping fleet in the Eagle Ford Shale and completed its first jobs during September. It also deployed an additional 11,250 HHP of additional pressure pumping equipment into the Bakken Shale.

Big Earnings Growth Expected

The 2010 and 2011 Zacks Consensus Estimates have been soaring after the third quarter results.

The 2010 consensus jumped to $1.12 from 84 cents in the last 90 days, with 3 estimates being revised higher in just the last week.

That is expected earnings growth of 245% as the company saw a loss of 77 cents in 2009.

The good times are expected to continue into 2011. The 2011 Zacks Consensus has climbed to $2.49 from $1.54 per share in the last 3 months.

Analysts expect another 122% earnings growth in 2011.

Still a Value Stock

Complete Production is a rare value stock that also has strong near term growth potential.

Complete Production is trading with a forward P/B of 2.7, which is within the parameters for a value stock.

Its price-to-sales ratio also indicates "value" at 1.6.

Complete Production Services is a Zacks #1 Rank (strong buy) stock. It is expected to report its fourth quarter results on Feb 3.

Tracey Ryniec is the Value Stock Strategist for Zacks.com. She is also the Editor in charge of the market-beating Zacks Value Trader service. You can follow her at twitter.com/traceyryniec.



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