Brisco News

EPG Company Profile: Hemisphere Energy Corporation (TSXV: HME)(OTCQX: HMENF)

By May 2, 2023No Comments

Home | Hemisphere Energy Corporation

Click HERE to view our updated profile on Hemisphere Energy, one of the Canadian Juniors that has delivered over a 500% return for us. It should give us at least another double from here.

The stock closed Monday at $1.28Cdn for HME.V and $0.94US for HMENF, so the adjusted annual dividend yield is 7.8% on their based dividends of $0.025/quarter and I now think there is a good chance that Hemisphere will increase their based dividends this year. All of their bank debt has been paid off.

I have lowered my current valuation by $1.00Cdn to $3.00Cdn, which translates to approximately $2.25US. They are going to pay more cash income taxes this year than I was forecasting, and I lowered the valuation multiple to 6X, primarily because the Company is running out of development drilling locations within Atlee Buffalo. Other than the lack of “running room,” this Company is rock solid. It has a “pristine balance sheet,” generates a lot of free cash flow from operations and with both polymer floods now underway and working, production and proved reserves should ramp up for several more years with a minimal amount of capital expenditures each year.

By the end of 2024, the oil production at Altee Buffalo should level off at ~4,000 bopd and stay there for many years as the polymer floods sweep the two pools within Atlee Buffalo, doubling recoverable reserves. There is still a lot of oil in place to be recovered; ~16 million barrels per their year-end reserve report.

I did talk to Don Simmons on Monday. His team is looking for an accretive acquisition. If they don’t find an acceptable deal, I believe they will pay a fat “Special Dividend” at year-end.

Daniel M. Steffens, President
Energy Prospectus Group
Houston, Texas
281-435-8874
The analysis and information in our newsletters, the reports & financial models on our website, and emails are for informational purposes only. No part of the material presented in our newsletters, reports & financial models on our websites, and/or emails is intended as an investment recommendation or investment advice. Neither the information nor any opinion expressed herein constitutes a solicitation to purchase or sell securities or any investment program. The opinions and forecasts expressed are those of the PUBLISHER (Energy Prospectus Group, a division of DMS Publishing, LLC) and may not actually come to pass. The opinions and viewpoints regarding the future of the markets should not be construed as recommendations of any specific security nor specific investment advice. Investors should always consult an investment professional before making any investment.

Investments in equities carry an inherent element of risk including the potential for significant loss of principal. Past performance is not an indication of future results.

Any investment decisions must in all cases be made by the reader or by his or her investment adviser. Do NOT ever purchase any security without doing sufficient research. There is no guarantee that the investment objectives outlined will actually come to pass. All opinions expressed herein are subject to change without notice. Neither the PUBLISHERS, editor, employees, nor any of their affiliates shall have any liability for any loss sustained by anyone who has relied on the information provided.

The analysis provided is based on both technical and fundamental research and is provided ”as is” without warranty of any kind, either expressed or implied. Although the information contained is derived from sources, which are believed to be reliable, they cannot be guaranteed.

The information contained in our newsletters, reports & financial models on our website, and emails is provided by Energy Prospectus Group, a division of DMS Publishing, LLC. Employees and affiliates of Energy Prospectus Group may at times have positions in the securities referred to and may make purchases or sales of these securities while publications are in circulation. PUBLISHER will indicate whether he has a position in stocks or other securities mentioned in any publication. The disclosures will be accurate as of the time of publication and may change thereafter without notice.

Index returns are price only and do not include the reinvestment of dividends. The S&P 500 is a stock market index containing the stocks of 500 large-cap corporations, most of which are US companies. The index is the most notable of the many indices owned and maintained by Standard & Poor’s, a division of McGraw-Hill.

 

Copyright © 2023 Energy Prospectus Group, All rights reserved.
As an EPG member, you receive all of our correspondence via email.

Our mailing address is:

Energy Prospectus Group

4718 Yorkshire St

Sugar Land, TX 77479-3981

Add us to your address book

Leave a Reply

Share

Join Our Mailing List