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

By September 8, 2022No Comments


Click HERE to view my updated profile on Hemisphere Energy, one of the Canadian companies in our Small-Cap Growth Portfolio.

Hemisphere has been a great investment for us; up ~600% since the beginning of 2021:

  • They made it through 2020, the “Pandemic Year,” funding their drilling program entirely with operating cash flow.
  • In 2021, the Company doubled operating cash flow to $18.5Cdn million ($0.20Cdn/share). Production started ramping up in 2H 2021.
  • In 2022, their development drilling program and the success of the G Pool polymer flood have generated significant production growth. Hemisphere is on pace for ~63% year-over-year production growth and they’ve started injecting polymer into the F Pool at Atlee Buffalo that should increase the rate of production growth.
  • Based on the Company’s guidance for 2H 2022, operating cash flow for this year should be approximately $52Cdn million ($0.51Cdn/share).
  • Looking forward to 2023, a modest drilling program should generate steady production growth from Atlee Buffalo.

Hemisphere has reached their goal of being virtually debt free. They are now returning a high percentage of FCF to stockholders in the form of quarterly dividends and a stock repurchase plan.

Read the profile and post your questions or comments to the EPG Forum.

Daniel M. Steffens, President
Energy Prospectus Group
Houston, Texas

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