Canada’s National Bank Financial recently told its clients that energy service companies trading near their net tangible book value (NTBV) with low financial leverage are the firms to seek out.

The securities broker said that the energy services market has been volatile in recent months and that certain companies within that sector would experience even greater flucation than their competitors. Specifically, the companies that may struggle according to NBF will likely have high leverage and not be particularly diversified.

NBF also told its clients that engergy service firms focused on production (as opposed to development and exploration) will be a better play. However, the company said that it didn’t feel that capital budgets are yet at risk.

Specifically, NBF singles out Essential Energy Services (ESN:TSX) and Tuscany International Drilling (TID:TSX) as good bets.

Essential opened Tuesday, August 9, at $1.75 and the company’s 52-week high was $2.71, with a low of $1.13. Tuscany – which started the day at $0.75 – had a high over the same period of $2.16.