Added to YB: 2023-02-19
Pitch date: 2023-02-12
HME.V [bullish]
Hemisphere Energy Corporation
Author Info
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Company Info
Hemisphere Energy Corporation acquires, explores, develops, and produces petroleum and natural gas properties in Canada.
Market Cap
CAD 270.8M
Pitch Price
N/A
Price Target
N/A
Dividend
N/A
EV/EBITDA
5.37
P/E
10.26
EV/Sales
3.42
Sector
Oil, Gas and Consumable Fuels
Category
turnaround
Hemisphere Energy - The best play on higher oil prices
HME.V: Canadian heavy oil producer w/ unique Atlee Buffalo asset using polymer flooding for tertiary recovery. Profitable at $28 WCS (~$30 WTI), breakeven possibly lower. Zero debt. 2023 production est 3,300 bbl/day, targeting 4,000-5,000. Low maintenance capex vs peers due to polymer tech extending reserve life 20+ yrs. Current EV/FCF ~4x at $55 WCS; ~3x if production hits 4,000 bbl/day. 7.5% dividend yield (30% payout). Mgmt owns 17%. Risks: unhedged oil exposure, options dilution, cyclicality.
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