A Member of Pat McKeough’s Inner Circle recently asked for his advice on a Canadian company that provides integrated waste management and energy infrastructure services.
Pat likes the firm’s recurring revenue streams in essential waste management services as well as its infrastructure-heavy business model which creates significant barriers to entry and generates stable, predictable cash flows. However, Pat notes the firm needs high levels of activity in its niche markets to continue to prosper.
Secure Waste Infrastructure Corp. (Symbol SES on Toronto; www.secure-energy.com) is a waste management and energy infrastructure business. The company changed its name from Secure Energy Services Inc. in January 2025
Headquartered in Calgary, Secure Waste operates through two segments:
Waste Management includes a network of waste processing facilities, water pipelines, industrial landfills, waste transfer stations, metal recycling facilities, and specialty chemicals. Through the network, the company processes, recovers, recycles and disposes of waste generated by its energy and industrial customers.
Services include wastewater disposal, plus hazardous and non-hazardous waste processing and transfer. They also include the treatment of crude oil emulsions, metal recycling, drilling waste management and specialty chemicals.
Energy Infrastructure includes a network of crude oil gathering pipelines, terminals, and storage facilities. Through this network, the company transports and stores crude oil.
This segment has two business lines: energy infrastructure and oil purchase and resale.
Energy infrastructure’s processing facilities help customers to process or treat their crude oil for shipping. The segment’s oil purchase and resale service also lets customers transport and handle their crude oil more efficiently.
Name change reflected the company’s new focus
Prior to February 2024, Secure Waste operated a third segment: Oilfield Services. The company got into this business in July 2021 by buying Tervita Corp., a waste service provider. However, due to competition concerns, regulators ruled in March 2023 that Secure Waste must sell 29 of the original 41 facilities it acquired under the Tervita acquisition. In February 1, 2024, it sold those 29 facilities to Waste Connections, Inc. for $1.15 billion.
The Tervita acquisition would have made Secure Waste a full-service energy services provider.
However, the sale of much of its energy services assets has left Secure Waste to focus on waste management and energy infrastructure.
To reflect this new focus, the company changed its name to Secure Waste Infrastructure Corp. on January 1, 2025.
Secure Waste pays a quarterly dividend of $0.10 a share. The stock yields 2.6%.
To keep its revenue and profits rising, the company needs the current high level of activity in its niche markets to continue.
Recommendation in Pat’s Inner Circle: Secure Waste Infrastructure is okay to hold.
