National Bank Financial Updates Outperform Rating on Lonestar West - Video Research Alert on InvestmentPitch.com

Vancouver, British Columbia--(Newsfile Corp. - December 5, 2014) - National Bank Financial has updated coverage on Lonestar West (TSXV: LSI). Following the company's release of its third quarter results, analyst Greg Colman reiterated his outperform rating and price target of $4.75, a premium of 58% to the $3.00 price on November 26th, the day the report was issued.

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Revenues increased 56.8% to $13,016,590 from $8,300,540 in the previous year equivalent period. Income before taxes was $1,028,002, an increase of $905,521 in comparison to the $122,481 income before taxes in the previous year equivalent quarter, with net income at $771,000, an increase of $679,019 over the $91,981 reported in the previous year equivalent period.

Based in Sylvan Lake, Alberta, Lonestar West operates throughout North America, providing services for drilling operations in Alberta, Saskatchewan, BC, Ontario, California, Oklahoma and Texas. The company is active in many oil sands projects and provides plant maintenance services for major corporations in several sectors.

Lonestar West operates a fleet of 134 Hydrovac, Vacuum and Auxiliary units, and anticipates adding a further 11 units by the end of the 4th quarter. The estimated total units of 145 for year end compares to 68 units at the beginning of the year.

Hydro excavation uses pressurized water to agitate the earth, and a powerful vacuum to remove rocks and soil to expose underground utilities and pipelines. These trucks have a 30 foot boom reach that can go vertically 23 feet before needing a remote hose. This non-destructive procedure replaces a conventional backhoe and manual digging.

James Horvath, President and CEO stated: "Lonestar is exceptionally pleased with both our organic growth and the contributions made by the Vamp Oilfield Inc. acquisition. The United States Division has shown meaningful improvements and Vamp is having a significant impact on the Canadian Division results."

Analyst Greg Colman stated: "While Lonestar's early-stage nature suggests results will be lumpy for some quarters yet, we are very pleased to see U.S. profitability kicking in much sooner than we expected. We continue to expect a doubling of EBITDA in 2015."

The company currently trades at $2.90, below the $4.75 target price, and with 23.7 million shares outstanding, the company is capitalized at $68.7 million.

For more information, please visit the company's website www.lonestarwest.com or contact James Horvath, President & CEO at 403-887-2074 or email info@lonestarwest.com. Investor relations is handled by Jeff Walker of The Howard Group, who can be reached at 403-221-0915 or by email at jeff@howardgroupinc.com.

For more information about National Bank Financial or to obtain a copy of their research report, contact your nearest National Bank Financial office. Their branches are listed on their website at www.nbf.ca.

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